Innovations in the Software Industry: Successful outsourcing is 80% prep work

Successful outsourcing is 80% prep work

Wednesday, August 03, 2005

Outsourcing isn't just an option for large companies, but it sure can seem that way to smaller businesses that have neither the staff nor budget to navigate. Among the smaller fish pioneering successfully in the outsourcing pool are software companies, who presumably know something about building applications. One generally accepted statistic holds that offshore outsourcing runs 40% to 60% less than domestic projects. Offshoring is also said to provide smaller businesses with access to big business concepts, such as time-to-market, agile platforms, and high-velocity turnaround.
How to get started? Finding a reputable contractor is critical, obviously. While smaller businesses lack the budget and staff to devote to outsourcing, creative IT departments can find resources, if they are willing to look and to stretch a little. Informal networking is free, and more valuable than you think. For example, Gartner advises these companies to participate in user groups and to mine word of mouth aggressively via small business associations.
Resources are not the only hurdle facing small and mid-size businesses interested in outsourcing. But this doesn't mean smaller businesses shouldn't venture into the outsourcing pool. It just means they have to do so much more carefully, and with a lot more forethought going in. An outsourcing prenup agreement is an especially good idea - especially since it can help ensure an exit strategy. Background checks matter even more when your business partner and employees are overseas.
The upshot? Offshoring can definitely pay off for smaller companies, particularly in terms of helping to stretch limited budgets and personnel. Stay alert, be prepared, and savings could be yours.

For the best offshore outsourcing services, offshore software development and software development outsourcing, contact A-1 Technology Inc, an offshore outsourcing company.

posted by Stella Parker, 2:42 AM

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