Outsourcing Excellence
Volume 3 Issue 1

from Metagyre, Inc.


editorJ. Raether
Metagyre, Inc Logo
Feature Article

The Seven Deadly Sins of Offshore Outsourcing

Gluttony, sloth, and lust are sins for real-world interactions, but sinning against offshore outsourcing means breaking a special set of ideals. To help you avoid an eternity in the fiery pits, here's a handy guide to the seven deadly sins of offshore outsourcing.

1) The Seat Of The Pants (SOTP) approach is often taken by those who have been successful and become over confident or those who are overwhelmed and not sure where to start.
   To continue, click here (feature_article_60.html)



Quick Tip


The New Deal

With all the competition for your business in the offshore outsourcing marketplace you have a chance to negotiate from a position of strength.  However, rather than focus on price, plan on asking for the following considerations in the contract:

Have the vendor provide a true portal with workflow, collaboration, application integration and role-based security as the unifying work space between your organizations.  You can then migrate the rest of your organization's activities to the same portal.

Have the vendor commit to installing Voice over IP (VoIP) hardware and software for communicating between the teams. Be sure there is enough capacity and bandwidth to allow you to tie in your own distributed offices.

Jointly develop an exchange program where your staff can participate in the vendor’s management training programs.

Many vendors now have significant software discounts available to them. Ask your vendor to pass on these discounts without a mark up, allowing even small companies to take advantage of big company savings.

Tool
Talk

Putting the dot in dotProject

Have you ever wished for a project management software package that supported distributed teams, was simple to use, supported the project activities you needed and did not cost an arm and a leg?  Then consider “dotProject”, one of the open source software packages designed for just such a wish list.

dotProject is a PHP web-based project management framework that includes modules for companies, projects, tasks (with Gantt charts), forums, files, calendar, contacts, tickets/helpdesk, multi-language support, user/module permissions and themes. Features Include
  • User management
  • Email-based trouble ticket system, (Integrated voxel.net's ticketsmith)
  • Client/company management
  • Project listings
  • Hierarchical task list
  • File repository
  • Contact list
  • Calendar
  • Discussion Forum
  • Resource-based permissions
More information can be found at http://www.dotproject.net

Upcoming Events

Guest lecturer at University of Washington and Edmonds Community College. Contact the Metagyre for details

May 22 - 26, 2005
DAMA Symposium and Wilshire Meta-Data Conference The 17th Annual DAMA International Symposium.

May 24 - 27 Sourcing 2005
The Sourcing Interests Group's 27th semi-annual conference

Creating Smarter Consumers of Outsourcing


IN THIS ISSUE 
The Seven Deadly Sins of Offshore Outsourcing

Outsourcing Experts Answer the Email

Attend events and learn more about offshore activities

The New Deal

Putting the dot in dotProject

Parting Thought



Q
uestions...
Answers!


Dear Outsourcing Expert:
I am looking at the cost differentials for offshore providers in China and other emerging countries.  How much risk is involved in using an outsource provider based in countries other than India or other established countries?
Pat

Dear Pat;

Risk is one of those things that is different for each company.  Risk has two components.  First is the inherent risk within the organization itself and how the organization accepts, mitigates and responds to risks.  The second component is the risk associated with the activities of offshore outsourcing.  How much risk is involved with China, for example, is dependent on both risk components.  Companies who accept and successfully manage large amounts of risk will not see outsourcing to China as a high risk.  Alternatively, a company with a low risk appetite and a poor track record of risk management may see offshore outsourcing in general as an unacceptable risk.

Dear Outsourcing Expert;

Where can I find a good source of information on foreign companies?  I am starting to perform my due diligence and don't know where to start.

Melissa

Dear Melissa;

A good resource for information on foreign companies and engaging in business with firms in other countries is your state government office.  In Washington State, the government office is the department of Community, Trade & Economic Development (CTED).  These departments typically have resources available to help US companies establish or expand international trade connections. These agencies allow you to speak to an industry expert, participate in trade workshops, or find information on markets and exports.




Q
uestions about offshore outsourcing? 
Get Answers!
email us at outsourcingexpert@metagyre.com




Parting Thought

You can have everything in life you want, if you will just help enough other people get what they want ~ Zig Ziglar



Book Metagyre for your next event. Hold a round table discussion.
email us at  speakers.bureau@metagyre.com




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