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Calculated Risk Part of Offshore Outsourcing

A notable business personality remarked that when it comes to software outsourcing the slide asking “Why India?” is no longer on any ones PowerPoint presentation. This makes a lot of sense when we consider India to be the recipient of over 60% of the total software development outsourcing contracts. What doesn’t make sense though is why any North American software development business would not consider outsourcing to India as a viable alternative. When outsourcing to India offers the potential to boost ROI and the opportunity to have a value added end product delivery, it becomes more enigmatic as to why a software development company would not consider outsourcing to India as a good business strategy.

Certainly there are reasons for not considering India as a viable alternative but these reasons are irrational. For example, a conservative business approach and a fear of venturing in an uncharted territory is one of them. But if this were the case it does not bode well for the business, as faint hearted organizations are bound to lose out in the marketplace if they adhere to practices considered intelligent prior to the opening of the floodgates of a globalized market. Long term successful organizations need to take calculated risks and try novel methods to steer their business to the shores of success.

Indeed, the word entrepreneur rooted in the word enterprise is seeped in the tradition of risk. The old adage aptly surmises entrepreneurship: to be a “no risk no gain” affair. It is a different matter that the risk has to be a calculated one. Still, the element of risk is synonymous with the very conception of business.

What then could be some other causes for refraining to outsource software development to India? On the top of the list it has to be lack of information and misinformation fuelled by the fear of the unknown when it comes to outsourcing to an alien land. There is a hand in drumming up of this sentiment by detractors who are convinced for some odd illogical reason that outsourcing is nothing but a method of robbing jobs from our country. If one digs deep it will be very apparent this is not  the case as the job losses have been mitigated by creation of other jobs and the phenomenon of reverse outsourcing is now a growing trend that will actually benefit North America in the long run.  read more

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But what about some legitimate concerns such as:

  • The possibility of lack of communication in dealing with non North American organizations
  • The possibility of inferior product delivery
  • The question of patent concerns and piracy

These are all necessary concerns no doubt. But these can all be satisfactorily addressed if the outsourcing organization does its homework prior to outsourcing.

The first step to obviate these problems should be to connect with a local consultant who can serve as a bridge between the outsourcing company and the vendor. A consultant who can provide the right vendor and one who is truly familiar with both cultures should be sought.  And above all, the consultant should be able to provide the outsourcing company with the best advice and method of transacting outsourcing to ensure there are minimal problems, if any. There is no reason not to benefit from the vast pool of computer engineers India has to offer. The worst reason to refrain from outsourcing would be the fear based on limited information and irrational considerations.

LancetWorldwide, a consultant company working out of Kanata, Canada, has a FREE initial consultation service and they may be contacted for setting up a meeting. They have a comprehensive protocol with successful offshore outsourcing best practices. They can give you a chockfull of ideas in outsourcing, especially to India where 80% of IT outsourcing is taking place. They have Canadian consultants who at the same time are well-versed in the business ethics and skills of the Indian marketplace and they also have already developed outsourced e-learning software in Cyberabad, India.

Lancet Worldwide, Moe Burney - CEO

Published Fri, 31 Aug 2007 10:35:58 -0400

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