When is it worthwhile
to turn to outsourcing?
When should projects be referred for outsourcing? Boring jobs, not in the core, etc.
Packages for Implementation with Outsourcing
- Project – identifying a project at the company, and transferring it for beginning-to-end implementation seems promising. This is a convenient framework since it is defined by its very nature and is easily given to clear wrapping of requirements. Sometimes it is also possible to add back-to-back requirements with the end customer. Such a model of development with responsibility and full commitment on the supplier's part is called "fully offshore development," and is naturally implemented with the fixed cost model.
- Development center – also called "Offshore Development Center" (ODC). In such a case, the supplier allocates clear, defined resources for the customer's benefit. Unlike the local development center, one can demand personnel flexibility such that the customer will not assume full responsibility for the resources and the time frame between projects. Obviously, when a development center is bought, there is no such flexibility.
Each boring topic involving a great deal of tedious work – this, of course, sounds very tempting, but does not ensure success. It should be noted that the local development center's unwillingness to do such jobs is not enough to convince the supplier to accept the assignment. There must be a clear, substantial definition of the activities such that it will be possible to delineate them and establish clear, proper relations with the supplier.
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