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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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