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Outsourcing: What It Takes

Posted on Saturday, May 23rd 2009

By Guest Authors Richard Hooker and Steve Monas

[Last week, Richard and Steve explained why businesses of all sizes should outsource and stressed that organization is a critical part of outsourcing. Today’s post covers more skills entrepreneurs need to manage a successful outsourcing relationship.]

As in every other aspect of starting a business, your biggest enemy in outsourcing is you. Outsourcing is not just a way of saving money, or an excuse not to organize critical tasks, it is an entire set of management skills and knowledge that outsource entrepreneurs have to master. In this excerpt from our book, “Shoestring Venture: The Startup Bible”, we go over the skills and requirements vendor relationships require.

A relationship with an outsource partner requires care, nurturing, and close management. Your goal is not just simply to avoid the problems with staffing your business, you also want the best performance and dedication to your company that you can get, just as with any employee, but you now have to elicit that excellence and dedication from a distance. In other words, an outsource relationship does not exempt you from management or, more critically, leadership.

It’s an absolute certainty that one or more of your outsource relationships will go bust. The reason outsourcing relationships fail is subject to a fair amount of debate. Because so many American businesses are outsourcing so many of their functions, there’s an entire discipline devoted to figuring this problem out. My experience, and the experience of many corporate consultants, is that outsource relationships fail because of lack of management and leadership by the client. In other words, if you think a business process outsource relationship is easy, you’re mistaken. You must develop the skills and devote the time to manage that relationship and provide genuine leadership to the contractor or freelancer before and after you make the hire.

What skills do you need? You need the exact same skills companies like IBM or Exxon-Mobil need to manage their outsource relationships. The difference is this: IBM or Exxon-Mobil can hire an army of MBAs and McKinsey consultants with those skills. You, on the other hand, must develop those skills all on your lonesome. These skills are:

  • communication
  • negotiation
  • project management
  • contract and legal expertise (you can’t avoid this one—you have to closely read and really understand what is in a legal document)
  • adaptability

When setting up an outsource relationship—even a one-time deal with a freelancer—you should focus on the following critical areas:

Alignment: when an outsource partner strives to achieve your goals, this is alignment. To achieve alignment, you make sure the vendor is rewarded for the performance you want and punished for the performance you do not want. If you want your call center to give the highest possible customer service, then you need the means to penalize the outsource partner financially if customers complain.

Growth: you want to meet your short-term needs with an outsource partner; you also want to know if your outsource partner can grow with your business. If not, you will find your outsource partner limiting your growth, the exact same problem you have with direct hires. So, based on a realistic expectation of what the future holds for your business, choose an outsource partner that can help fuel that future rather than hinder it.

Management: your agreement with an outsource partner should provide management tools to make sure that the service is performing as expected and has mechanisms to respond to change, such as a sudden spike in your needs.

This segment is a part in the series : Outsourcing


. View From Accenture
. What It Takes
. West Corporation Interview (Part 1)
. West Corporation Interview (Part 2)
. West Corporation Interview (Part 3)
. West Corporation Interview (Part 4)
. West Corporation Interview (Part 5)
. West Corporation Interview (Part 6)
. Evalueserve Interview (Part 1)
. Evalueserve Interview (Part 2)
. Evalueserve Interview (Part 3)
. Evalueserve Interview (Part 4)
. Evalueserve Interview (Part 5)
. Evalueserve Interview (Part 6)
. Evalueserve Interview (Part 7)
. Evalueserve Interview (Part 8)
. Evalueserve Interview (Part 9)
. Persistent Systems Interview (Part 1)
. Persistent Systems Interview (Part 2)
. Persistent Systems Interview (Part 3)
. Persistent Systems Interview (Part 4)
. Persistent Systems Interview (Part 5)
. Persistent Systems Interview (Part 6)
. Persistent Systems Interview (Part 7)
. Persistent Systems Interview (Part 8)
. Persistent Systems Interview (Part 9)
. Persistent Systems Interview (Part 10)
. Persistent Systems Interview (Part 11)
. Persistent Systems Interview (Part 12)
. Persistent Systems Interview (Part 13)
. Persistent Systems Interview (Part 14)
. Persistent Systems Interview (Part 15)
. Persistent Systems Interview (Part 16)
. Tata Communications Interview (Part 1)
. Tata Communications Interview (Part 2)
. Tata Communications Interview (Part 3)
. Tata Communications Interview (Part 4)
. Tata Communications Interview (Part 5)
. Tata Communications Interview (Part 6)
. Tata Communications Interview (Part 7)
. Vivek Chopra of Computer Sciences Corp. (Part 1)
. Vivek Chopra of Computer Sciences Corp. (Part 2)
. Vivek Chopra of Computer Sciences Corp. (Part 3)
. Vivek Chopra of Computer Sciences Corp. (Part 4)
. Vivek Chopra of Computer Sciences Corp. (Part 5)
. Vivek Chopra of Computer Sciences Corp. (Part 6)
. Vivek Chopra of Computer Sciences Corp. (Part 7)
. Vivek Chopra of Computer Sciences Corp. (Part 8)
. Vivek Chopra of Computer Sciences Corp. (Part 9)
. Vivek Chopra of Computer Sciences Corp. (Part 10)
. Vivek Chopra of Computer Sciences Corp. (Part 11)
. Vivek Chopra of Computer Sciences Corp. (Part 12)
. Vivek Chopra of Computer Sciences Corp. (Part 13)
. Vivek Chopra of Computer Sciences Corp. (Part 14)
. Raju Reddy, Chairman And CEO Of Sierra Atlantic (Part 1)
. Raju Reddy, Chairman And CEO Of Sierra Atlantic (Part 2)
. Raju Reddy, Chairman And CEO Of Sierra Atlantic (Part 3)
. Raju Reddy, Chairman And CEO Of Sierra Atlantic (Part 4)
. Raju Reddy, Chairman And CEO Of Sierra Atlantic (Part 5)
. Raju Reddy, Chairman And CEO Of Sierra Atlantic (Part 6)
. Raju Reddy, Chairman And CEO Of Sierra Atlantic (Part 7)
. Raju Reddy, Chairman And CEO Of Sierra Atlantic (Part 8)
. Raju Reddy, Chairman And CEO Of Sierra Atlantic (Part 9)
. Jean Cholka, President And CEO Of Freeborders (Part 1)
. Jean Cholka, President and CEO Of Freeborders (Part 2)
. Jean Cholka, President and CEO Of Freeborders (Part 3)
. Jean Cholka, President and CEO Of Freeborders (Part 4)
. Jean Cholka, President and CEO Of Freeborders (Part 5)
. Jean Cholka, President and CEO Of Freeborders (Part 6)
. Jean Cholka, President and CEO Of Freeborders (Part 7)
. Peter Harrison, CEO Of GlobalLogic (Part 1)
. Peter Harrison, CEO Of GlobalLogic (Part 2)
. Peter Harrison, CEO Of GlobalLogic (Part 3)
. Peter Harrison, CEO Of GlobalLogic (Part 4)
. Peter Harrison, CEO Of GlobalLogic (Part 5)
. Peter Harrison, CEO Of GlobalLogic (Part 6)
. Peter Harrison, CEO Of GlobalLogic (Part 7)
. Peter Harrison, CEO Of GlobalLogic (Part 8)
. Peter Harrison, CEO Of GlobalLogic (Part 9)
. Naresh Lakhanpal And Hiro Notaney Of Patni Computer Systems (Part 1)
. Naresh Lakhanpal And Hiro Notaney Of Patni Computer Systems (Part 2)
. Naresh Lakhanpal And Hiro Notaney Of Patni Computer Systems (Part 3)
. Naresh Lakhanpal And Hiro Notaney Of Patni Computer Systems (Part 4)
. Naresh Lakhanpal And Hiro Notaney Of Patni Computer Systems (Part 5)
. Naresh Lakhanpal And Hiro Notaney Of Patni Computer Systems (Part 6)
. Naresh Lakhanpal And Hiro Notaney Of Patni Computer Systems (Part 7)
. Naresh Lakhanpal And Hiro Notaney Of Patni Computer Systems (Part 8)
. Dr. Shami Khorana of HCL America (Part 1)
. Dr. Shami Khorana of HCL America (Part 2)
. Dr. Shami Khorana of HCL America (Part 3)
. Dr. Shami Khorana of HCL America (Part 4)
. Dr. Shami Khorana of HCL America (Part 5)
. Dr. Shami Khorana of HCL America (Part 6)
. Amit Shankardass And Andrew Kokes Of Sitel (Part 1)
. Amit Shankardass And Andrew Kokes Of Sitel (Part 2)
. Amit Shankardass And Andrew Kokes Of Sitel (Part 3)
. Amit Shankardass And Andrew Kokes Of Sitel (Part 4)
. Amit Shankardass And Andrew Kokes Of Sitel (Part 5)
. Amit Shankardass And Andrew Kokes Of Sitel (Part 6)
. Amit Shankardass And Andrew Kokes Of Sitel (Part 7)
. Amit Shankardass And Andrew Kokes Of Sitel (Part 8)
. Amit Shankardass And Andrew Kokes Of Sitel (Part 9)
. Amit Shankardass And Andrew Kokes Of Sitel (Part 10)
. Joe Lawler, Chairman, President And CEO Of ModusLink (Part 5)
. Joe Lawler, Chairman, President And CEO Of ModusLink (Part 6)
. Alexei Miller, Executive Vice President Of DataArt (Part 1)
. Alexei Miller, Executive Vice President Of DataArt (Part 2)
. Alexei Miller, Executive Vice President Of DataArt (Part 3)
. Alexei Miller, Executive Vice President Of DataArt (Part 4)
. Alexei Miller, Executive Vice President Of DataArt (Part 5)
. Alexei Miller, Executive Vice President Of DataArt (Part 6)
. Alexei Miller, Executive Vice President Of DataArt (Part 7)
. Alexei Miller, Executive Vice President Of DataArt (Part 8)
. Alexei Miller, Executive Vice President Of DataArt (Part 9)
. Joe Lawler, Chairman, President And CEO Of ModusLink (Part 1)
. Joe Lawler, Chairman, President And CEO Of ModusLink (Part 2)
. Joe Lawler, Chairman, President And CEO Of ModusLink (Part 3)
. Joe Lawler, Chairman, President And CEO Of ModusLink (Part 4)
. Sandip Sen, President And CMO, Aegis (Part 1)
. Sandip Sen, President And CMO, Aegis (Part 2)
. Sandip Sen, President And CMO, Aegis (Part 3)
. Sandip Sen, President And CMO, Aegis (Part 4)
. Sandip Sen, President And CMO, Aegis (Part 5)
. Sandip Sen, President And CMO, Aegis (Part 6)
. Martin Migoya, CEO Of Globant (Part 1)
. Martin Migoya, CEO Of Globant (Part 2)
. Martin Migoya, CEO Of Globant (Part 3)
. Martin Migoya, CEO Of Globant (Part 4)
. Martin Migoya, CEO Of Globant (Part 5)
. Martin Migoya, CEO Of Globant (Part 6)
. Martin Migoya, CEO Of Globant (Part 7)
. César Gon, Founder And CEO, CI&T (Part 1)
. César Gon, Founder And CEO, CI&T (Part 2)
. César Gon, Founder And CEO, CI&T (Part 3)
. César Gon, Founder And CEO, CI&T (Part 4)
. César Gon, Founder And CEO, CI&T (Part 5)
. Ankur Prakash, Vice President And COO, TCS Latin America (Part 1)
. Ankur Prakash, Vice President And COO, TCS Latin America (Part 2)
. Ankur Prakash, Vice President And COO, TCS Latin America (Part 3)
. Ankur Prakash, Vice President And COO, TCS Latin America (Part 4)
. Ankur Prakash, Vice President And COO, TCS Latin America (Part 5)
. Chris Coles, President And CEO Of HyperQuality (Part 1)
. Chris Coles, President And CEO Of HyperQuality (Part 2)
. Chris Coles, President And CEO Of HyperQuality (Part 3)
. Chris Coles, President And CEO Of HyperQuality (Part 4)
. Chris Coles, President And CEO Of HyperQuality (Part 5)
. Lalit Dhingra, President Of NIIT Technologies (Part 1)
. Lalit Dhingra, President Of NIIT Technologies (Part 2)
. Lalit Dhingra, President Of NIIT Technologies (Part 3)
. Lalit Dhingra, President Of NIIT Technologies (Part 4)
. Lalit Dhingra, President Of NIIT Technologies (Part 5)
. Lalit Dhingra, President Of NIIT Technologies (Part 6)
. PV Kannan, CEO Of 24/7 (Part 1)
. PV Kannan, CEO Of 24/7 (Part 2)
. PV Kannan, CEO Of 24/7 (Part 3)
. PV Kannan, CEO Of 24/7 (Part 4)
. PV Kannan, CEO Of 24/7 (Part 5)
. PV Kannan, CEO Of 24/7 (Part 6)
. PV Kannan, CEO Of 24/7 (Part 7)
. Ravi Pandit, Chairman And Group CEO, KPIT Cummins (Part 1)
. Ravi Pandit, Chairman And Group CEO, KPIT Cummins (Part 2)
. Ravi Pandit, Chairman And Group CEO, KPIT Cummins (Part 3)
. Ravi Pandit, Chairman And Group CEO, KPIT Cummins (Part 4)
. Ravi Pandit, Chairman And Group CEO, KPIT Cummins (Part 5)
. Manish Dugar, Senior VP And Global Head Of Wipro BPO (Part 1)
. Manish Dugar, Senior VP And Global Head Of Wipro BPO (Part 2)
. Manish Dugar, Senior VP And Global Head Of Wipro BPO (Part 3)
. Manish Dugar, Senior VP And Global Head Of Wipro BPO (Part 4)
. Manish Dugar, Senior VP And Global Head Of Wipro BPO (Part 5)
. Manish Dugar, Senior VP And Global Head Of Wipro BPO (Part 6)
. Manish Dugar, Senior VP And Global Head Of Wipro BPO (Part 7)
. Matthew Heim, President of NineSigma (Part 1)
. Matthew Heim, President of NineSigma (Part 2)
. Matthew Heim, President of NineSigma (Part 3)
. Matthew Heim, President of NineSigma (Part 4)
. Matthew Heim, President of NineSigma (Part 5)
. Arul Murugan, Founder and CEO of Enrich IT (Part 1)
. Arul Murugan, Founder and CEO of Enrich IT (Part 2)
. Arul Murugan, Founder and CEO of Enrich IT (Part 3)
. Arul Murugan, Founder and CEO of Enrich IT (Part 4)
. Arul Murugan, Founder and CEO of Enrich IT (Part 5)
. Arul Murugan, Founder and CEO of Enrich IT (Part 6)
. Sanjay Dhawan, CEO of Symphony Services (Part 1)
. Sanjay Dhawan, CEO of Symphony Services (Part 2)
. Sanjay Dhawan, CEO of Symphony Services (Part 3)
. Sanjay Dhawan, CEO of Symphony Services (Part 4)
. Sanjay Dhawan, CEO of Symphony Services (Part 5)
. Sanjay Dhawan, CEO of Symphony Services (Part 6)
. Sanjay Dhawan, CEO of Symphony Services (Part 7)
. Jason Beans, Founder and CEO of Rising Medical Solutions (Part 1)
. Jason Beans, Founder and CEO of Rising Medical Solutions (Part 2)
. Jason Beans, Founder and CEO of Rising Medical Solutions (Part 3)
. Jason Beans, Founder and CEO of Rising Medical Solutions (Part 4)
. Jason Beans, Founder and CEO of Rising Medical Solutions (Part 5)
. Jason Beans, Founder and CEO of Rising Medical Solutions (Part 6)
. Jason Beans, Founder and CEO of Rising Medical Solutions (Part 7)
. Matt Barrie, CEO of Freelancer.com (Part 1)
. Matt Barrie, CEO of Freelancer.com (Part 2)
. Matt Barrie, CEO of Freelancer.com (Part 3)
. Matt Barrie, CEO of Freelancer.com (Part 4)
. Matt Barrie, CEO of Freelancer.com (Part 5)
. Matt Barrie, CEO of Freelancer.com (Part 6)
. Million-Dollar Freelancer Sanjay Dange, Co-Founder and COO of Smartinfosys.net (Part 1)
. Million-Dollar Freelancer Sanjay Dange, Co-Founder and COO of Smartinfosys.net (Part 2)
. Million-Dollar Freelancer Sanjay Dange, Co-Founder and COO of Smartinfosys.net (Part 3)
. Million-Dollar Freelancer Sanjay Dange, Co-Founder and COO of Smartinfosys.net (Part 4)
. Million-Dollar Freelancer Sanjay Dange, Co-Founder and COO of Smartinfosys.net (Part 5)
. Fabio Rosati, CEO of Elance (Part 1)
. Fabio Rosati, CEO of Elance (Part 2)
. Fabio Rosati, CEO of Elance (Part 3)
. Fabio Rosati, CEO of Elance (Part 4)
. Fabio Rosati, CEO of Elance (Part 5)
. Fabio Rosati, CEO of Elance (Part 6)
. Fabio Rosati, CEO of Elance (Part 7)
. Ross Kimbarovsky, Co-Founder of CrowdSPRING (Part 1)
. Ross Kimbarovsky, Co-Founder of CrowdSPRING (Part 2)
. Rick Ferry, COO of C3 (Part 1)
. Ross Kimbarovsky, Co-Founder of CrowdSPRING (Part 3)
. Ross Kimbarovsky, Co-Founder of CrowdSPRING (Part 4)
. Rick Ferry, COO of C3 (Part 2)
. Rick Ferry, COO of C3 (Part 3)
. Ross Kimbarovsky, Co-Founder of CrowdSPRING (Part 5)
. Rick Ferry, COO of C3 (Part 4)
. Ross Kimbarovsky, Co-Founder of CrowdSPRING (Part 6)
. Ross Kimbarovsky, Co-Founder of CrowdSPRING (Part 7)
. Rick Ferry, COO of C3 (Part 5)
. Rick Ferry, COO of C3 (Part 6)
. Rick Ferry, COO of C3 (Part 7)
. Million-Dollar Freelancer
. Million-Dollar Freelancer
. Million-Dollar Freelancer
. Million-Dollar Freelancer
. Million-Dollar Freelancer
. Ian Ippolito, Founder and CEO of vWorker (Part 1)
. Ian Ippolito, Founder and CEO of vWorker (Part 2)
. Ian Ippolito, Founder and CEO of vWorker (Part 3)
. Ian Ippolito, Founder and CEO of vWorker (Part 4)
. LN Balaji, President of ITC Infotech (Part 1)
. LN Balaji, President of ITC Infotech (Part 2)
. LN Balaji, President of ITC Infotech (Part 3)
. LN Balaji, President of ITC Infotech (Part 4)
. LN Balaji, President of ITC Infotech (Part 5)
. LN Balaji, President of ITC Infotech (Part 6)
. Brad Heath, CEO of VirTex Assembly Services (Part 1)
. Brad Heath, CEO of VirTex Assembly Services (Part 2)
. Brad Heath, CEO of VirTex Assembly Services (Part 3)
. Brad Heath, CEO of VirTex Assembly Services (Part 4)
. Blanca Trevino, CEO of Softtek (Part 1)
. Blanca Trevino, CEO of Softtek (Part 2)
. Blanca Trevino, CEO of Softtek (Part 3)
. Blanca Trevino, CEO of Softtek (Part 4)
. David Bonthrone, Executive Vice-President, Group FMG (Part 1)
. David Bonthrone, Executive Vice-President, Group FMG (Part 2)
. David Bonthrone, Executive Vice-President, Group FMG (Part 3)
. David Bonthrone, Executive Vice-President, Group FMG (Part 4)
. Gopinathan Padmanabhan, Executive VP and Head of Global Delivery, MPhasiS (Part 1)
. Gopinathan Padmanabhan, Executive VP and Head of Global Delivery, MPhasiS (Part 2)
. Gopinathan Padmanabhan, Executive VP and Head of Global Delivery, MPhasiS (Part 3)
. Gopinathan Padmanabhan, Executive VP and Head of Global Delivery, MPhasiS (Part 4)
. Gopinathan Padmanabhan, Executive VP and Head of Global Delivery, MPhasiS (Part 5)
. Gopinathan Padmanabhan, Executive VP and Head of Global Delivery, MPhasiS (Part 6)
. Gopinathan Padmanabhan, Executive VP and Head of Global Delivery, MPhasiS (Part 7)
. Gopinathan Padmanabhan, Executive VP and Head of Global Delivery, MPhasiS (Part 8)
. Million-Dollar Freelancer
. Million-Dollar Freelancer
. Million-Dollar Freelancer
. Million-Dollar Freelancer
. Million-Dollar Freelancer
. Josh Lieberman, Co-Founder of KMS Technology, Atlanta and Ho Chi Minh City (Part 1)
. Josh Lieberman, Co-Founder of KMS Technology, Atlanta and Ho Chi Minh City (Part 2)
. Josh Lieberman, Co-Founder of KMS Technology, Atlanta and Ho Chi Minh City (Part 3)
. Josh Lieberman, Co-Founder of KMS Technology, Atlanta and Ho Chi Minh City (Part 4)
. Josh Lieberman, Co-Founder of KMS Technology, Atlanta and Ho Chi Minh City (Part 5)
. Arijit Bhattacharyya, CEO of VirtualInfoCom.com (Part 1)
. Arijit Bhattacharyya, CEO of VirtualInfoCom.com (Part 2)
. Arijit Bhattacharyya, CEO of VirtualInfoCom.com (Part 3)
. Arijit Bhattacharyya, CEO of VirtualInfoCom.com (Part 4)
. Arijit Bhattacharyya, CEO of VirtualInfoCom.com (Part 5)
. Arijit Bhattacharyya, CEO of VirtualInfoCom.com (Part 6)
. Interview with Harley Lippman, CEO of Genesis10 (Part 1)
. Interview with Harley Lippman, CEO of Genesis10 (Part 2)
. Interview with Harley Lippman, CEO of Genesis10 (Part 3)
. Interview with Harley Lippman, CEO of Genesis10 (Part 4)
. Interview with Harley Lippman, CEO of Genesis10 (Part 5)
. Interview with Harley Lippman, CEO of Genesis10 (Part 6)
. Interview with Harley Lippman, CEO of Genesis10 (Part 7)
. Interview with Roop Singh, VP and Head for North America, Europe and JAPAC at Wipro Consulting Services (Part 1)
. Interview with Roop Singh, VP and Head for North America, Europe and JAPAC at Wipro Consulting Services (Part 2)
. Interview with Roop Singh, VP and Head for North America, Europe and JAPAC at Wipro Consulting Services (Part 3)
. Interview with Roop Singh, VP and Head for North America, Europe and JAPAC at Wipro Consulting Services (Part 4)
. Interview with Roop Singh, VP and Head for North America, Europe and JAPAC at Wipro Consulting Services (Part 5)
. Interview with Roop Singh, VP and Head for North America, Europe and JAPAC at Wipro Consulting Services (Part 6)
. Interview with Roop Singh, VP and Head for North America, Europe and JAPAC at Wipro Consulting Services (Part 7)
. Ed Cross, Executive Director – Procurement & HRO at Xchanging (Part 1)
. Ed Cross, Executive Director – Procurement & HRO at Xchanging (Part 2)
. Ed Cross, Executive Director – Procurement & HRO at Xchanging (Part 3)
. Ed Cross, Executive Director – Procurement & HRO at Xchanging (Part 4)
. Ed Cross, Executive Director – Procurement & HRO at Xchanging (Part 5)
. Ed Cross, Executive Director – Procurement & HRO at Xchanging (Part 6)
. Ed Cross, Executive Director – Procurement & HRO at Xchanging (Part 7)

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Comments

Great post. I fully agree. Too often the focus is on closing the deal for the best rate. In my opinion the focus should be more on finding the best fitting partner, based on the criteria you addressed. One thing I would like to add to the criteria: “cultural fit”. May be it is not the best term, but the outsource partner should really fit you. You don’t have to become friends, but a good level of common understanding is essential.

Once you start cooperating with your new outsource partner you will have to arrange your demand management well. This is what too many outsourcers forget to do. It is possible that you call this project management in your post, but I am not sure about that.

Petersopinion.com Monday, May 25, 2009 at 8:54 AM PT

It is also very important to understand what service one is taking from the outsource vendor and what service one needs to achieve the goal.

I have seen clients ask “I need 4 java developers with WebSphere experience and 1 Testing engineer”. It gives me a red alert a lot of time being the delivery head for a software development and testing service company. To be successful in this outsourcing I am sure the relationship needs a manager who will manage the team, who will update the status to people, who will manage the risks and who will play kind of BA role to understand the scope and manage it and so on… Unless the client is expert in outsourcing and understands how the dynamics work it is very hard for somebody to make it work this way. And the vendor always would say “You asked for 4 Java and 1 Test Engineer body, if you don’t like any one of them I will replace without any additional cost to you.”. Well it never works that way. Unless somebody manages the relationship, somebody manages the delivery, somebody manages the communication and risk it never works. It is the responsibility of the vendor to educate the client in such cases. And the client should realize that the vendor is trying to make it successful as well to get another reference-able client and build a long term business relationship. One need to know how to package some work to be able to outsource it as well.

It is important to discuss and understand the work instead of talking number of bodies. Often people do mistake that instead of taking 4 contractors on-site it is same as taking 4 bodies from some outsourced farm. It is not actually. It is much more beneficial to outsource if it is done RIGHTWAY.

Santanu Monday, May 25, 2009 at 11:30 AM PT