Table of Contents
GETTING MORE DONE 3
1 WHAT IT MEANS TO OFFSHORE YOUR WORK 6
DEFINING OFFSHORING 6
THE HISTORY OF OFFSHORING 7
TYPES OF WORK OFFSHORED 8
COMMON OFFSHORING TERMS 9
2 WHAT YOU CAN OFFSHORE 11
COMPANY SUPPORT AT THE MANAGEMENT LEVEL 11
WHAT IT SKILLS DOES YOUR COMPANY LACK? 12
HAVE FINANCIAL AND HUMAN RESOURCES BEEN WASTED IN THE IT AREA? 13
DO RISKS INCREASE WHEN YOU OFFSHORE WORK? 13
3 HOW OFFSHORING CAN HELP YOUR BUSINESS 15
4 THE BAD ABOUT OFFSHORING 18
MANAGEMENT CONTROL ISSUES 18
STAFF RESENTMENT 19
CONTRACT PROVES TO BE INADEQUATE 19
OFFSHORED SERVICES PROVE TO BE UNSATISFACTORY OR LACK QUALITY 19
OFFSHORED SERVICES OFFEND CUSTOMERS OR COMMUNITY 20
5 FINDING THE RIGHT OFFSHORE WORKERS 21
THE SELECTION PROCESS 22
ONSHORE VERSUS OFFSHORE 23
6 LEGAL ISSUES 26
PRIVACY LAWS 26
INTELLECTUAL PROPERTY 26
THE CONTRACT 27
TERMINATING THE CONTRACT 28
7 OFFSHORING SECURITY 29
COMMON SECURITY ISSUES 29
IDEAS FOR LIMITING RISK 30
GENERAL GUIDELINES FOR INSURING INFORMATION IS KEPT SAFE 31
DISASTER RECOVERY 32
8 AVOIDING OFFSHORING PROBLEMS 33
CONCLUSION 35
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GETTING MORE DONE
In any business, there is a balance between maintaining the staff and resources for an aggressive market strategy and economy. So each hiring decision you make is important because each employee represents a cost to the company in terms of salary and benefits. In order to maintain predictability in your costs from year to year, you really cannot have the staff of any one department swell and shrink on a project by project basis.
But that is what can easily happen in an IT department when the company mandates a large and complicated IT based project. In order to keep pace with rapidly advancing technology, most businesses must undergo routine upgrades if not replacements to their technological infrastructure on a regular basis. So it is a challenge to keep the company on the cutting edge both in terms of internal systems but also the corporate web site and use of cyberspace. In order to keep up with the rapid advancements in how the internet can benefit the company and keep you competitive, you have to be able to turn projects around quickly and, as a company, be agile enough to undergo fairly radical change at the infrastructure level on a routine basis.
Outsourcing part of your project work offshore is one way to get control over those costs. Many times the IT staff resents the exporting of development work to outsourcing freelance workers or to an external vendor organization. That is why it is important for management to communicate that this step is not done as a vote of no confidence in the on staff personnel. Rather it is to focus the use of IT staff on duties that are crucial to the ongoing life of the business and to take short term project work offshore in order to keep staff workers focused on priority assignments.
The choice between using a local outsourcing organization and using freelance workers offshore is often one of economy but it also might reflect the approach these two contractor organizations bring to the table. Using a local agency for outsourcing work is preferable when you basically want to “turn over” a function to the contractor company. These kinds of outsourcing contracts tend to be turn key so the contractor is offering a total solution including development, project management, implementation, user training and ongoing support.
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