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Russian Outsourcing: Articles

How to decrease outsourcing risks

22 Feb 2006 viewed (523)  comments (0) 

Russian company BCS-IT answers common outsourcing quesionts.
Part 3 of 4

What specific advices/ways can you name/offer for decrease of risks? How would that avoid the mistakes/risks of question #2? What preparation processes should be carried by company that is going to send its IT tasks to outside provider before searching for an outsourcing partner?

The first and the most important one – the decision to outsource should be deliberate. It shouldn’t be imposed to leadership, it should also be obvious to staff and clients. You can face certain hardship while explaining to staff why the need in partner that is going to perform some part of their work occurred. But you have to overcome it or you will have to abandon your plans for outsourcing because otherwise the resistance inside the company can occur in the most unsuitable moment.

After the decision is made you should task the service provider as clear as possible. It is necessary to define who will be responsible for project management, who will take the administrative part, who and how will control the work process and the results.

You will be amazingly surprised how useful can be the precision in processes organization. First thing that is mentioned by companies that have carefully made all the preparations before the project launch is not about savings. They mention increasing of internal management level. The necessity to clearly understand and issue the task, to control the whole process has disciplined and raised the company management on new level.

The second important thing to do is to select a right partner. After understanding the internal tasks and solutions it is necessary to choose a right service provider according to aim, company specificity and requests. Being a service provider it is hard for us to give advices, but we can give some general guideline.

When choosing it is important to proceed from tasks requirements, company strategy and least of all from location, culture or size of provider company. For example: for big project of full desktop application development it is necessary to look for a company that is able to grant enough of required programmers. For localization project on the other hand the best choice would be a small company with core competency in this kind of projects.

It is important for partner to fit into all of the requirements to be reliable and competent. You should look at the company itself on the first hand on their case studies, staff and only then on the location. Pay attention how this company carries the process, how they perform the stages of team-work, how ready they are to go through all the details of your partnership.

The best way to start with minimum risks is to launch a small project with your potential partner. This will help you to adjust communication means, synchronize all the processes.

« Go to part 2 Go to part 4 »


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How to decrease outsourcing risks