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Selecting Partner: Offshore vs Nearshore

22 Feb 2006 viewed (508)  comments (0) 

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

India has been a leader in offshore business for a long period of time. Now many Eastern Europe countries and China are entering this market quite successfully. What are the main cultural differences in offshore partnership? What partner should be chosen in different situations?

There is a variety of different small nuances that will affect your relationship with a partner, but in our opinion they are not so considerable to give them primary importance. That is why the difference between Nearshore and Offshore isn’t very significant. In both cases it is necessary to thoroughly plan and control the processes of the project. A service provider company defines a lot with its experience, completed projects. If you are open to dialogue you will easily overcome language and culture barriers.

Being a Russian team we can share with you some general ideas about working in Russia. High staff professional skills and ability to solve non-standard tasks is typical for Russian companies. But when choosing a development partner it is necessary to pay attention to management standards in the company and this is a weak spot for Russian companies.

We have also noticed that it is quiet easy for us to communicate with European customers because of similar mentality.

The key factor for successful offshore partnership is a partner selection. What do you have to pay attention in this process? How to organize a process of selection? How to make sure in partners competencies?

The development partner selection is definitely a very important risk-bearing step in outsourcing process. But there are several steps that will help you to reduce the risks.

The company accordance to your task requirements should become the key factor in selection. Answers on the following questions should serve as a criterion for you.

  • Does the company have significant experience in necessary fields? You should take a look at examples of similar projects completed by the company and ask for information about them or for some references from other customers in this field.

  • How does the company see the development process (communication, key stages, reporting and control means)? Do you like this approach? What do they offer for development planning and organisation?

  • How accurate is a company in task estimation and preproject planning? If they as you a lot of questions that is a good sign, because that means a serious attitude towards the project and doesn’t show partners incompetence at all. All the details should be clear for your partner and he has to be aware of everything.

  • That is why when you are looking for a partner you should make the list of companies in interesting for you fields first. There can be 7-10 on the list. After that you should ask the companies to make an estimation for your project. Watch how companies are going to communicate with you, how fast they are reacting. Try to imagine if you are ready to partner with this particular company for a long term period. After this 2-3 companies should be left. Launch small 2-3 week project with all of them paying much attention to daily reports. We believe this way you will easily pick an appropriate provider.

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    Selecting Partner: Offshore vs Nearshore