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| What is Outsourcing? |
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| Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business |
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| Why Outsource? |
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| The OPD (Outsourced Product Development) option brings down the total cost of output, helps boost the bottom-line by availing of the best talent, and saves time for core activities. |
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| 5 Key reasons why ISVs outsource product development: |
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| What should you Outsource ? |
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- Product Development
- Product Advancement
- Product Implementation
- Product Maintenance
- Product Testing
- Product Support
- Documentation
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- Focus on core business needs and strengths: By outsourcing, you get more time to understand customer needs, innovate ideas for market-centric products, and build customer relationships
- Augment your Product Development expertise: You get the best of skills and talent to work for you
- Get enhanced Return on Technology Investment (ROTI): You save huge infrastructure and staff costs and in return you get a high quality product
- Speed up your time-to-market: Your product development partner ensures fast development and deployment
- To gain competitive advantage
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| Where to Begin? |
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| Learn |
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- Outsourcing concept
- Offshore Industry
- Pros and cons of offshore outsourcing
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| Involve |
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- Educate all stakeholders
- Get a buy-in from the management team
- Get them to choose offshore outsourcing as a strategic tool
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| Identify |
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- Get offshore companies from the countries selected
- Evaluate based on company vision & values, clientele, language and technology match
- Shortlist good companies that you need to further evaluate
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| Prepare |
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- Prepare an RFI questionnaire
- Send it to offshore vendors
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| Evaluation Process |
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| Track record |
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- Service commitment
- Industry recognition & certifications
- Customer satisfaction
- Service level agreements offered
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| Financial Stability |
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- Check financial statements
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| Account Management |
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- How will your account be managed
- What Project Management tools are used?
- How available is the Account Manager
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| Customer References |
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- Check with references on how satisfied they are
- What are the provider’s strengths
- What has been the quality of delivery
- How efficient they are in Project Management
- How does the provider deal with problems
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| Do’s and Don’ts in outsourcing: |
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| Five do's of successful outsourcing |
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- Outsource the bottlenecks-those things that are really keeping you from growing your business profitably.
- Pick great partners. Check them out. Talk to their current customers.
- Once you outsource, your provider is part of your company; treat it that way.
- Demand excellence-this is what your provider does for a living. The way it does it should constantly amaze you.
- Outsourcing can scare employees. Get, and stay, ahead of the rumor mill through straightforward, honest communications.
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| Six worst mistakes in outsourcing |
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- Not clearly defining the desired results and how they'll be measured.
- Not talking to a provider's current and former clients.
- Failing to consider the long-term relationship dynamics.
- Signing a standardized, multiyear contract.
- Not planning up front for how the relationship might end.
- Treating the provider as an outsider.
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