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OFFSHORE OUTSOURCING RESOURCES:

= Vendor Eval Process
= Outsourcing Issues
    = Country Related
    = Vendor Related
    = Personnel Related
    = Other Issues
= Offshore Risk Mgmt
= Outsourcing News


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OFFSHORE OUTSOURCING ISSUES - VENDOR RELATED

One of the most critical elements of Offshore Outsourcing is vendor evaluation process and vendor selection. Loss of control (on quality, time lines, et al) is inherent to offshore outsourcing. Besides, there are concerns about compatibility, business culture and ethics. Initial due diligence is necessary to cement a strong partnership.

Clarity is necessary between the outsourcer and the offshore vendor on the following issues:

  • Ownership of Information
    Both the parties involved must be clear regarding the ownership of information exchanged as well ownership of the deliverables. Outsourcer must be fully aware of the IP laws in effect within the vendorís country. Taking care of this issue will help avoid disputes that may arise towards the projectís completion.

  • Security
    Offshore vendor has to make sure that the discretion, safety and privacy of the critical information passed onto them is maintained during and after the project completion also. Offshore vendor must strictly adhere to conditions related to data exchange, access, utilization, storage and allotment laid down by outsourcer. This issue becomes more crucial during the transition phase. The security practices adopted by the offshore vendor needs to be thoroughly known to outsourcer. Sharing of information should not ultimately lead to loss of confidential business details for the outsourcer.

  • Business Continuity Agreement
    Both parties must agree and sign the terms for continuity of outsourcing contract. While outsourcing, you need to deal with international laws. So be prepared to tackle, should any disagreements arise with the offshore vendor. Taking care of this issue will help outsourcer steer clear of huge monetary losses if a dispute results in sudden termination of the contract. A contingency plan should always be in place from the very start, should any eventuality, which may be beyond offshore vendorís control, appear.

  • Reporting
    Both the parties must mutually agree regarding the level of communication and reporting required to keep each other updated. A well-defined standard reporting procedure must be in place before the actual project execution. Have an experienced, dedicated project manager, apt at handling both business relations as well as for continuously monitoring the projectís progress as a moderator. This moderator will also keep a track of the contract terms being adhered to. The level of direct involvement of outsourcerís top management must be clearly specified.

Traditional Outsourcing models provide businesses with a common communications platform, and usually include a personal visit to the outsourcing partner's destination. The Global Delivery Model gives you the benefit of resolving the issues onshore. As required, you can always verify the necessary resources at the onshore office of the outsourcing partner. The involved parties could document issues collaboratively. Both parties, in real time, can easily and flexibly implement necessary alterations in business processes upon mutual agreement. This might not be possible with a traditional offshore model, where you do not have any point of contact onshore.

MachroTech is a global Information Technology (IT) consultant and services provider successfully following its Global Software Delivery Model to deliver premium quality products and services to its clients at affordable cost.

 

 

                                                                   

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