Risks involved in offshore outsourcing

hanusoft · #1 (**permalink**) 10-23-2007, 03:49 AM

Any big deal with a firm comes with certain risks. Risks that can be eliminated if the development stages are followed according to a well- designed process model.
The risk that reflects immediately is the misunderstanding of the customer’s product requirement. In case of Offshore Software Development also, no risk can be avoided if there is lack of proper interaction between the client and the service provider. A proper understanding can be built by analyzing the requirements with the client.
From your knowledge of Offshore Outsourcing, what are the risks involved? Feel free to post your suggestions on the topic.

business process outsourcing company

Webnauts · #2 (**permalink**) 10-23-2007, 04:35 AM

I think it is most risky outsourcing projects in India, as I had plenty of problems already.

vinay11111 · #3 (**permalink**) 10-23-2007, 04:51 AM

You may have bad experience with some but I think there isnt any risk involved in outsourcing to cpmpanies that are having good proessional approach o the clients.

Webnauts · #4 (**permalink**) 10-23-2007, 04:54 AM

Quote:

Originally Posted by vinay11111

You may have bad experience with some but I think there isnt any risk involved in outsourcing to cpmpanies that are having good proessional approach o the clients.

They had a very professional approach to us, but nothing was real after all.
Just my experience.

**mjtaylor** · #5 (**permalink**) 10-23-2007, 10:15 AM

I have had problems with offshore outsourcing (delays mostly) but then I have had problems when I hired an employee locally. I still use an Indian design team for some projects and would do it again ... and I am looking for a local employee, as well. That reminds me, I must go and post an ad on craigslist for a new assistant. I need more time for the forum!

Webnauts · #6 (**permalink**) 10-23-2007, 10:18 AM

Quote:

Originally Posted by mjtaylor

I still use an Indian design team for some projects and would do it again ...

Be very careful with outsourcing link building though.

**mjtaylor** · #7 (**permalink**) 10-23-2007, 10:19 AM

Quote:

Originally Posted by Webnauts

Be very careful with outsourcing link building though.

Absolutely! I would never!

**ctabuk** · #8 (**permalink**) 10-23-2007, 10:46 AM

Hmmmm - Outsourcing link building - well you guys have never used My Green Corner Web Directory have you?

Well let me tell you something - it's the best $30.00 you will ever spend. Stunning results in Google. Damn - I've just given out my prize secret in SEM

**mjtaylor** · #9 (**permalink**) 10-23-2007, 11:40 AM

Quote:

Originally Posted by ctabuk

Hmmmm - Outsourcing link building - well you guys have never used My Green Corner Web Directory have you?

Well let me tell you something - it's the best $30.00 you will ever spend. Stunning results in Google. Damn - I've just given out my prize secret in SEM

Thanks! And I think we should delete this thread now.

martink · #10 (**permalink**) 10-23-2007, 04:18 PM

I've had good and bad experiences.

The good - we are in an ongoing relationsthip with a company who runs some client interaction software on our website. They host it and provide costumer service. Overall, we're happy.

The bad - we hired a web developement company whose project managers are local, but developers are overseas. Quality was a huge issue. We would communicate very specific business requriements and deployment was always rough. Sometimes I had to ask if they even read the original requirements. Also, the coding logic was really messy. There are 800 ways to build one page, and they would choose the most complicated and messy. We're still cleaning up code they deployed for us.

I would get references and maybe do a trial relationship to see how it goes.

bj · #11 (**permalink**) 10-23-2007, 04:25 PM

I have one offshore person in Pakistan I outsource to, but got to know him quite well on IM prior to trying him on some smaller stuff, and we communicated very well from the beginning. He's great at what he knows, though a bit limited. But he gets all of that particular type of work from me. My experience has been a very good one with this individual. BTW, I'm the one who asked if he wanted to work for me, not the other way around. And he wasn't in a hurry to say yes, since he keeps pretty busy. That told me something right there. He asked me questions, then gave me a reasonable proposal on what I could expect from him, and followed through, beating the time he said to expect it to take.

I'd consider outsourcing more were I to need it.

Having said that, I think it depends on how you find the person. The freelancer sites are most likely the worst way. But if you "meet" the person through other means, such as a forum or newsgroup, and he or she seems knowledgeable, then further conversation may eventually lead to a good relationship.

blitzen · #12 (**permalink**) 10-23-2007, 05:02 PM

Hey! Look at the big picture. What "they" want you to do is think small and not think at all. Think about yourself and your gains.

Outsourcing means loss of jobs in your country. This leads to loss of consumer purchasing power. When you start losing that, your nation's economy slumps and eventually so will your business.

Yes, even your one outsourced job a year can have an effect. After all, 80% of businesses in the US are small businesses. If each one did this, that's a lot of jobs.

Just ask the Americans about the effects. The effects are starting and aren't over yet.

.

Webnauts · #13 (**permalink**) 10-23-2007, 05:16 PM

Quote:

Originally Posted by martink

There are 800 ways to build one page, and they would choose the most complicated and messy. We're still cleaning up code they deployed for us.

They are probably 800 ways to develop a web application (site or software), but only one way is proper.

bj · #14 (**permalink**) 10-23-2007, 05:17 PM

Quote:

Yes, even your one outsourced job a year can have an effect. After all, 80% of businesses in the US are small businesses. If each one did this, that's a lot of jobs.

The problem with this is that most contractors in the US don't want to do the small jobs, and when they will consider them they want as much or more than I'm charging the client.

Something else that is happening, that I've taken full advantage of-- the dollar is weak enough so that MY services are much more attractive elsewhere. I've been outsourced to other countries many times.

So . . . what were those effects you were talking about?

Akashic · #15 (**permalink**) 10-23-2007, 06:16 PM

Quote:

Originally Posted by ctabuk

Hmmmm - Outsourcing link building - well you guys have never used My Green Corner Web Directory have you?

Well let me tell you something - it's the best $30.00 you will ever spend. Stunning results in Google. Damn - I've just given out my prize secret in SEM

I'm confused ... isn't paying for links supposed to be a no no?

**mjtaylor** · #16 (**permalink**) 10-23-2007, 06:52 PM

Quote:

Originally Posted by bj

But if you "meet" the person through other means, such as a forum or newsgroup, and he or she seems knowledgeable, then further conversation may eventually lead to a good relationship.

Very wise post ... not surprising considering the source. Rep points for BJ!

MJ

Quote:

Originally Posted by blitzen

Hey! Look at the big picture. What "they" want you to do is think small and not think at all. Think about yourself and your gains.

Outsourcing means loss of jobs in your country. This leads to loss of consumer purchasing power. When you start losing that, your nation's economy slumps and eventually so will your business.

Yes, even your one outsourced job a year can have an effect. After all, 80% of businesses in the US are small businesses. If each one did this, that's a lot of jobs.

Just ask the Americans about the effects. The effects are starting and aren't over yet.

.

Your political view is not consistent with your statement of location as 'Earth.'

This is a thorny issue, and I don't know that I have thought it through completely, but I like to think we are all one.

Quote:

Originally Posted by bj

The problem with this is that most contractors in the US don't want to do the small jobs, and when they will consider them they want as much or more than I'm charging the client.

Valid Point.

Quote:

Originally Posted by Akashic

I'm confused ... isn't paying for links supposed to be a no no?

Those aren't paid links. There is a fee for a featured link which puts you higher on the page but you can also get a reciprocal link there. So, Google, for the moment looks at this sort of payment for a listing differently, just as it looks at sites where you pay a review fee differently.

Great thread!

MJ

vinay11111 · #17 (**permalink**) 10-24-2007, 12:32 AM

Quote:

Originally Posted by Webnauts

Be very careful with outsourcing link building though.

I sarted my carrer as Link building executive with a SEM company in India and did lots of link building projects (reciprocal and three way) all the project were through outsourcing adn clients were pretty satisfied with the results. I dont thik theres any risk in outsourcing your projects as long as you are gettin quality work meeting your time deadlines.