Non-Risky Outsourcing: Truth Or Fairy Tale For Kids?

Jan. 20, 2011 - PRLog -- Fast changing environment, strong competition, globalization of world markets are among the main challenges for nowadays businesses. And especially they influence is evident on IT industry, where without constant innovations and new service models is practically impossible survive and be ahead of competitors. World Crisis made most of us more cost-conscious and it is ok, as the highest ROI may be reachable only using your assets cost-efficiently. We have became also more conservative and today are in search of opportunities to minimize our risks.

IT Outsourcing is far from of new trend. It is widespread worldwide and there are plenty of businesses with good or bad experience.
Why some examples of outsourcing successful while some fail? What is wrong?

The answer for today is the lack of communication, misunderstanding, non-transparent relations between IT vendors and those who outsource and distrust that are caused by classic model of dedicated development centre.

Why is it so?

Just because you don’t see software engineers engaged in your project, you don’t know them and just you are not sure how many efforts they make in order to complete your project. Just think – they are paid for hours. More hours – more paid.

   How can I check whether they actually work on my project or overestimate worked time in order to receive more?

   Who really works on my project: experienced software engineers whose CV’s they showed me or less experienced ones and how can I check this?

   How can I be sure that my developers receive the salary I pay them?

These questions are frequently comes to our mind when deciding using outsourcing or not.
What to choose: Outsource or Not?

If you really cost-conscious than the answer is obvious – OUTSOURCE.

   But how prevent yourself from the pitfalls and annoying doubts and uncertainty?
   Is it really possible to outsource without risks?

Well, only in fairy tales at the end you will definitely see the happy final, but such are the truth of life that any activity can’t be without risks. Risks exist always and it is really so.

Another question we should ask ourselves:
How can I minimize risks?

The possible answer is Dedicated Team or Own Software Team business models. This model is created as a reaction to unsatisfied needs of thousands of companies which do not want to pay someone without receiving managerial control and transparent relations.

Demonstration example of company that uses this model may be Ainstainer Group. It is fast growing Ukrainian company that creates and extends software development teams in Ukraine.

The idea of their model is quite simple: you receive your own team in Ukraine cost-efficiently and safe managerial control on it.
Define team's requiremetns -> Recruitment -> Team Establishment -> Team Support
Pic. My Team Model (Outsourcing 2.0 : Dedicated teams)

You choose the right software engineers in your team, discuss with them their salary and timetable and start managing them as your onsite team.

With this model you do not spend time and resources on searching, testing, recruiting and such administrative issues as placement of team in one office, providing them with software and hardware, Internet and phone connection, HR support and many other things.

So, in other words, Dedicated Team gives you software engineers with economy up to 50-70% in comparison to your local markets and minimizes risks that are caused by lack of communication, misunderstanding and lack of trust.

IT Sourcing Europe has written good whitepaper where it compares Dedicated Teams and Classical Outsourcing. You can download it for free here.

  So, question to all of you: Are dedicated teams able to minimize risks or it is the next fantasy? I will be waiting for your comments.

# # #

We create and support your own hyper-productive software development team in Ukraine. Company’s key clients are from Denmark, Belgium, The Netherlands, Germany, Norway and the USA.