Offshore Outsourcing

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Offshore Outsourcing  

Offshore Outsourcing

Offshore Outsourcing is not a new phenomenon. Somewhere 10 years back cost reduction came at the center stage, when companies sought short-term solutions from offshore software outsourcing and received almost equal benefits. 10 years later, it has become a “do or die” situation and offshore outsourcing services are no longer about only cost savings. They have become an essential revenue and growth strategy for almost every existing corporation. Offshore Outsourcing IT Services Provider offer you services in described time limits, more efficiently and effectively, getting the first movers advantage, having maximum flexibility with your workforce and sourcing access to high quality employees you otherwise could not afford.

What needs to be your next step towards offshore outsourcing? Set your sights on one critical in-house resource to leverage offshore outsourcing initiatives most effectively. The basic question for any company is “Why should It Outsource Offshore?” Lets find an answer to this question!







1) Flexibility: Off load work: You can create capacity for higher margin work in internal sources. This of course creates flexibility in the company ensuring the optimum utilization of the available resources within the company. MachroTech offers you an offshore outsourcing model which combines the best of its onshore and Offshore Software Outsourcing resources, to provide you with the flexibility to operate your business flawlessly.

2) Cost: Generally, outsourced services cost you a fraction of US (30-50%) costs with equal quality. Your competitors are outsourcing operations offshore to have the cost advantage over the market and free up management resources. Offshore software development companies like MachroTech help you reduce your operating costs at a significant level. Our resources assure delivery of quality products and services to meet your and your customers’ expectations and needs. And our Quality Assurance (QA) comes at a cost affordable to you!!! MachroTech follows various relationship and pricing models to provide you with an option to combine one or more available models as a part of your business strategy. We believe in building long lasting mutually beneficial relationships through our various partnership programs to add more value for our clients.

3) Focus: The most valuable resource within your management resources is Time. Once a process is successfully outsourced, the management gets more and effective control over time. Time to explore new revenue streams, time to accelerate other projects, and time to focus on their customers. Traditionally, executives spend 80 percent of their time managing details, and only 20 percent on planning and customer relations. A successfull offshore outsourcing process can reverse this ratio.

4) Rapid Migration to New Technology: The offshore outsourcing destinations use the latest state-of-the-art technologies to serve their international clients. This helps your company have an access to the new technologies that might not be used in your company. The chances of migration to the new technology, by your company can also be leveraged in the short as well as long term.

5) Re-deploy Resources Strategically: This is the benefit that will be showing its effect on the bottom lines, once implemented successfully. Offshore Outsourcing lets the internal resources concentrate on the personal strategic issues related to the business, freeing them from the not-so-necessary jobs that might be taking relatively more of their time.

6) Exploit the Time Zone Advantage and reap the benefits of 24-hour development cycle: Again destinations like India and the Offshore Outsourcing models being practiced in the country give you the benefit of 24/7 services. Hence you can easily exploit the time zone advantage that India shares with the US, receiving round the clock benefits yourself as well as providing it to your customers as and when needed.

The process of Offshore Software Development might be new to many small sized firms, who do not yet focus completely on Offshore Outsourcing, but might soon need to do so to compete and survive. Here are a number of general steps towards the process, which can be used by companies.

A) Internal Assessment:

The basic idea of internal assessment is to find out and lay down your priorities of work in terms of time, quality, cost, etc., when you outsource the same. Because you don’t need to outsource your work to any vendor with good experience or facilities, but you need to outsource your work to the vendor who best meets your needs. You can divide your needs in various categories of services like, E-commerce solutions, Customer Relationship Management, Custom Application Development, etc.

You need to write down a detailed scope of work, which specifies exactly what you need and/or what you want the product or service to do when the job is completed. This document needs to be in as much detail as possible with the exact specifications of the job to be done. These can include performance, functional and specification type statements of work.

B) Request for Proposal.

A Request for Proposal (RFP), necessarily spells out in severe/exact or to-the-point details of the terms and conditions, your scope of work, the evaluation criteria and the importance of the evaluation criteria and the probable pricing structure. You need to clearly specify if you are in need of any custom programming for your company or you need to change and improve your existing processes, or whether you need to avail of the supply chain management services of the vendor, etc.

If the job you need to outsource is big and large in nature so much so that the potential vendor needs to use subcontractors, the vendor will need to explain exactly how these relationships will work.

C) Evaluation Process.

Here you need to keep in mind the Internal Assessment details which you decided in the initial stage of the process. Compare your priorities with those available, and scrutinize them accordingly. Specific segments, for example, Enterprise Application Integration experience needs to be kept in mind as it helps you reduce a lot of manual, less important work and makes you work more efficiently and effectively. These specific segments need to be evaluated on the basis of the work and business related to your industry. The most favoring ones need to be on the top priority for the selection process. There are some general specifications that can be followed for the vendor evaluation, in case required.

D) Selection Process.

At this point, you want to seriously consider just a few of the best proposals that have come back. You might follow-up and seek clarifications. This process is especially critical when you are seeking to outsource services that are hard to quantify, such as labor or research and development, to name just two examples. Another major thing could be to have a look to the vendor’s software or business products that are used by him or developed by him for the market. This helps you effectively decide the quality and scope of the work that he can provide you with. The destination of the vendor is also to be specially studied and explored as English language and the time difference being the major drivers of the process. Countries like India and ecommerce solutions provider like MachroTech LLC, having counterparts in the US can help you very well as their English proficiency is ranked very high among various offshore outsourcing destinations. Also the time advantage that India offers is very suitable for the US based companies. Hence you need to be very clear in your selection process, as this will determine your prospective offshore partner.

E) Execute the Contract.

Of course, this is when you sign the deal.

F) Review and revise.

The review of the work in progress can be on daily, weekly, monthly, quarterly basis or on any other basis as specified in the contract and agreed mutually by both the parties. It can be in form of reports generated from either end. If the report is prepared at the vendors end, it just needs to be passed on, or else if the client prepares a report inquiry, it needs to be answered by the vendor as per requirements.

And this does not stop at just having the reports and evaluating them. You need to go out and suggest necessary changes whenever and wherever needed. Errors on the vendor’s part need to be investigated and corrected as per requirements. This process needs to continue effectively till the successful completion of the work.

G) Close-Out.

This occurs when the outsourcing arrangement is totally completed. At this point, opt to prepare a final report. It should contain everything the two parties discussed over the period of the contract. Keep it for future reference. You’ll want to use it as a basis for the next deal with another vendor also.


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