IT Outsourcing Issues

by Mohsin Khan A globalized economy has brought us into close contact with other business professionals, and talking with a man located overseas is a thing of the past in this digital era. As businesses worldwide embrace the rules of globalization gradually, they have also realized its significance for their daily processes. One of the major opportunities for small firms has been the prevalence of IT Outsourcing. Most of all, it allows you big savings if done properly. But there are other significant benefits too, like it frees up more resources for you to focus on core competencies. And remember, you can benefit from the combined intelligence of an extremely diverse staff, and can employ the best brains of third-world countries at comparatively lower costs. On the other hand, if not done properly, it can rather turn into a nightmare and may even result in greater expenses as compared to internal work. Lengthy research papers have been written on this issue, and this comparatively tiny article is insufficient to inform you about all the problems. Hence, only the more widespread risk categories will be discussed in this small discussion. One of the very first motivations to outsource IT projects is none other than money; therefore, we will discuss that first. First of all, clients typically take into account only salaries when they compare in-house development against outsourcing. In fact, numerous people get the idea of outsourcing solely because they realize wages in some Cheapistan are less than half of what they typically pay. While this is no doubt a possibility, it wouldn’t do good if you take for granted that’s the only cost. Neglecting expenditure that comes from management, communication, and the like isn’t an option. Hence, do thorough research and take into account the entire cost of outsourcing; else, get ready for a shock when you see the accounting books at the end of the day. Next on, the culture of the supplier is very important for you. Do they implement standards to maintain a particular quality standard? Have they taken appropriate steps to defend their systems from hackers and viruses? You don’t like an ex-worker to steal your proprietary software’s source code and trade it on eBay, would you? Things similar to these would come into your mind when you create an outsourcing strategy. Also study the ethnic values prevalent in your suppliers’ country. As pirated works are a norm in a good part of Asia, you have to ensure your intellectual property will not get disseminated on a domestic scale via other channels. As a final point, some threats are exclusive to the nature of the IT project you outsource. If you are outsourcing tasks that can be hardly measured, you may face conflicts later. And don’t ignore small details by leaving them at the mercy of the supplier to decide. For instance, you can hire php programmer to make a site for your latest business. Nevertheless, if you fail to agree on the specifics carefully, you can later learn he used components that amplify your web hosting costs by a noticeable value. Start with a fresh mind as if you are putting your feet in a new meadow and do research as needed. There are experts in your country who can help you make or break the deal if you wish. Don’t forget that subcontracting in itself isn’t a botched concept; but you should be aware of the best practices to succeed smoothly. Mohsin Khan works for an IT outsourcing consultancy firm. You can hire Php programmers through us for successful outsourcing of your jobs. Article Source: http://www.articlerich.com