sathish99
18th August 2010, 11:04
In today’s business, outsourcing has become market scenario for most of the companies are following it. Many Reasons may be added value for outsourcing but on the whole money is one of the major factors for companies moving towards outsourcing. Outsourcing is not only profitable to client but also for vendor.
As vendor would probably have his team in a geographically location with financial status lesser than that of client location for example in India, Philippines etc. vendors could get the work done with cheaper price and with same quality. With internet and communication having advanced to an extent never before, connecting to clients is made easier.
However, outsourcing has attached risks with in it. As client and vendor will be sharing the requirements through phone there would be a possibility of serious communication gaps between them. Common language of communication is also a main barrier between clients and vendor. As a result client would need to go for a local vendor would in turn pay more to them. Apart from communication hiccups outsourcing has serous other issues like credibility of vendor on completion of project. As client and vendor were in no face to face communication credibility of vendor would be in a serious question. Also clients would be scary of support of project after the release of it. Clients would expect at least 2 months of support from its release.
Vendors too have issues like client's credibility of paying them back after completion of work. Vendors can opt for escrow process to avoid these kinds of risks. Frequent change of requirement by client results in over usage of resource by vendor, which can be minimized from client end or pay the vendors extra in case of any change in requirements.
On the whole to avoid these kinds of issues on outsourcing, and also to enjoy the benefits of outsourcing, partnership of companies in different locations would be a solution. Local companies will act on collecting requirement and managing projects and will take care of delivery of projects completion and as the real work is done in offshore benefit of cost on project could be passed to clients. Near shore approach could be realised using partnership between companies of different locations.
Our company innoppl technologies has followed this approach and acquired many partnerships across different locations around the globe.
As vendor would probably have his team in a geographically location with financial status lesser than that of client location for example in India, Philippines etc. vendors could get the work done with cheaper price and with same quality. With internet and communication having advanced to an extent never before, connecting to clients is made easier.
However, outsourcing has attached risks with in it. As client and vendor will be sharing the requirements through phone there would be a possibility of serious communication gaps between them. Common language of communication is also a main barrier between clients and vendor. As a result client would need to go for a local vendor would in turn pay more to them. Apart from communication hiccups outsourcing has serous other issues like credibility of vendor on completion of project. As client and vendor were in no face to face communication credibility of vendor would be in a serious question. Also clients would be scary of support of project after the release of it. Clients would expect at least 2 months of support from its release.
Vendors too have issues like client's credibility of paying them back after completion of work. Vendors can opt for escrow process to avoid these kinds of risks. Frequent change of requirement by client results in over usage of resource by vendor, which can be minimized from client end or pay the vendors extra in case of any change in requirements.
On the whole to avoid these kinds of issues on outsourcing, and also to enjoy the benefits of outsourcing, partnership of companies in different locations would be a solution. Local companies will act on collecting requirement and managing projects and will take care of delivery of projects completion and as the real work is done in offshore benefit of cost on project could be passed to clients. Near shore approach could be realised using partnership between companies of different locations.
Our company innoppl technologies has followed this approach and acquired many partnerships across different locations around the globe.