Before Making a Decision

Dec 06

Before making a decision on outsourcing the project there are several things to bear in mind. Among them the most essential things to remember are TOP-5 MISTAKES FOR OUTSOURCER TO AVOID: what you need to know before you start working with outsourcing partner:

  1. Understanding of the strategic goals is unnecessary for outsourcing teams. There is no synergy where people do not understand reasons of what they do. Make it transparent to your offshore team and keep them up to date– it will increase their efficiency dramatically.

  2. Biggest suppliers are most efficient. Huge suppliers with thousands of employees are often scattered all over the world, which adds bureaucracy to their processes. This is not good when high-integrity is required and speed of decision making is important. Besides, the size of overheads with bigger suppliers is bigger too.

  3. Requirements and their details are evident. Things that are so evident to you may be not that evident to developers or project lead due to different background, mindset etc. Talk and write – share your vision – it will only save your time and money.

  4. Risks do not happen to me. There are always issues in the project, and issues are risks that became reality. It’s better to manage risks than eliminate their consequences – ask your supplier for risk management plan.

  5. Fixed Price (FP) model will save my money. Budget defined upfront is good, but there are always changes. FP model includes all the possible risks into the project’s estimation (with some/all of them never to happen). Time&Material model makes you pay only for the work done. Thus, you should aim at building trust with your supplier and rely on him.

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