Tag Archives: Offshore

Pros and Cons of Outsourcing IT and Software services

pros and consSuccess of outsourcing has always been debatable from the day of its existence.  Every business owner who is willing to outsource their software development requirements to IT solution providers in India or any other developing country will always evaluate the pros and cons of outsourcing process.  In today’s aggressive competition businesses face huge cost pressure and outsourcing their IT project management and development requirement becomes a natural option for cost effective operations.

There are several research reports in market which portray more complex picture of outsourcing wherein organizations are not very satisfied with their current contracts or
they are losing confidence in one or other projects. Few of them are considering renegotiating their existing outsourcing contracts or changing the outsourcing partners.

It is really important for business owners to understand the possible pitfalls in outsourcing and how to decide the aces and ploys of outsourcing.

Advantages of Outsourcing:

  • Most important factor which business owners enjoy is the cost efficiency in getting their strategy executed. Lower labour and operation cost makes IT leaders a natural supporter of outsourcing.

  • Business owners can focus on core activities of their business such as making new strategiesCore Competencies to gain new market, sales and marketing activities etc. instead of worrying about their non-core activities.
     
  • Huge reduction in maintaining infrastructure cost and headcount which incurs while maintaining non-core activities.

  • Outsourcing can help you in streamlining the finances and cash-flow in a focused and with well-defined strategy.

  • Turnaround rate of deliverable is topped up with offshore workforce teams and you can align your resources for working on more projects.

  • Outsourcing IT services enables business owners to save money on investments on technology and developers and allows them to spend that amount in hiring resources related to their core functions.

  • Round the clock support and access to workforce for 24/7. It provides flexibility to realign the resources according to needs and help business owners to focus on gaining new clients.

Disadvantages of Outsourcing:

  • The biggest risk in outsourcing is the security of data and information. Lack of proper NDA and other agreements have resulted in leak of information’s and sensitive data.

  • Quality is a major concern and business owner’s end up spending a lot on deliverables which are not up-to the mark. This generally happens when the outsourcing vendor is not experienced or there are no quality processes.

  • At times business owners end up losing control on the operations and deliverables of the outsourced tasks.

  • Lack of defined SLA’s is also one of the main disadvantages of outsourcing. It is always recommended to have detailed SLA’s and cover each and every aspect of business unit to avoid any disappointments at later stages which either can be related to hidden costs or missing features from the deliverable.

  • Putting all the eggs in one basket does increase the risk of outsourcing failures. If you are associated with only one software vendor and that vendor goes bankrupt or due to some policy changes they ask to redefine the agreement, you might not enjoy it.

  • Communication and management of tasks in different time zones is another possible issue which business owners faces when they outsource their software and IT project management services.

  • Trust factor plays important role. It gets worst when business owners noticed lack of transparency from team working on outsourced tasks. It could be due to number of projects offshore team is handling or real experience of resources who are assigned to the projects.

These are only few of the pros and cons of outsourcing software services. Multiple issues may crop up without the clear understanding on projects, objectives etc. Maintaining transparency through project status, regular calls between client and offshore teams are the few main factors which define the outsourcing relationship.

Business owners can easily avoid all these pitfalls by choosing the right offshore partner. It is really important to organizations to review and short-list the solution providers, follow the essential steps for stress-free and successful outsourcing very carefully and align their goals and objectives before giving the contracts.

Launching a Successful Venture – Journey of a Sperm to Life!!

Launching is successful venture is very much like a journey of Sperms where only one out of millions gets an opportunity to give the life.  Daily there are several Start-ups which are popping up in the market out of which only few get a chance to taste the success and rest get disappears. Launching a venture is easy but pursuing your passion to pursue it to next level is what defines your success. The moment you lose your passion and focus, you will lose in the race of success

EntrepreneurshipI have been recently bitten by an entrepreneurship bug and have been reading, exploring about how to launch a venture which can help me to pay community back which has given me everything which I could ask for.   My journey has been far more challenging then what I thought and at many times I lost my direction.  Entrepreneurship is a self-evolving journey where every step you take will give you an option to choose from different new steps leading in different direction.

Being associated with an IT industry and companies working on offshore models I have gained many insights about how and what type of business operates in this industry however when it came to put my thought in a structure I understood how difficult it is to make it happen and one can end up spending sleepless nights to put it in structure.

Based on my understanding and knowledge, I have spent a lot of time in analysing about core things which I believe must be answered before I present it to market.  Few of them are listed below:

  1. Services my venture should be offering
  2. Markets we should be targeting
  3. What makes us competitive and stand outside the crowd
  4. Do we have a passion to address client issues
  5. What kind of talent we should be hiring

In the process of answering above points, I took an opportunity to meet and speak many experts who either have supported several executives in launching their ventures or have their own successful ventures in the market. In addition of seasoned experts, I also met newbies who were fairly new, less experienced and trying to launch their new start-ups. Idea of such meeting is to understand the challenges which they have faced/facing and how they are making sure that they stays passionate.

My every meeting and discussion has given me new perspective to my thought process and helped me to filter, define my offerings in a better way.  Few of those discussions were highly motivating, few were mix of positive and negative and few were hopeless but the core of every discussion was to focus on important things which will eventually help an entrepreneur to be become successful and have a successful venture.

If I have to summarize my all discussions and meeting to provide meaningful solution, I believe I can sum that in few points which are well known and shared by lot of experts however not everyone believe them till they themselves get their hands dirty in trying them. They will be:

  1. The problem and pain areas which your venture will be solving
  2. Why your potential customer think that as a problem and pain
  3. What solution/service you will offer to solve that problem
  4. How better your solution/service is from your competitor
  5. Do you have a passion to pursue that

My new venture Globality Consulting does answer above points, but these are not the only guidelines which we got to keep in mind. There is lot in there and as I mentioned above, every step we take to stabilize our own venture, a new thought comes to mind which will look more lucrative but if you are not passionate on what you started and lose focus then you opt for those options and get into a vicious, never ending circle of losing your patience and your dream and then you will end up like other sperms which don’t get chance to give life.