A Lesson in Outsourcing
In the beginning of any outsourcing deal, companies often outsource because of one reason: cost. Though there are countless number of articles stating that this should not be the case, companies nonetheless still do the same thing.
This is also one of the reason why many outsourcing deals go back home. This article written by Stephanie Overby tells us an important lesson when it comes to outsourcing and in this case, outsourcing in China. Here is an excerpt in the said article:
"Often, the young people in China can't put an issue in context. They'll program directly to specifications, even if that may not be what the user really wants."
If you were able to read the entire article, you could see why cost should not be the main reason for outsourcing. Instead, companies should consider both cost and quality in order to have success in outsourcing deals.
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These issues can be overcome with experience. Business leaders, managers, and executives just need to learn to make their organizations responsive to the needs of the clients–as this example states, the developer simply doesn’t understand client needs–as perhaps a cultural barrier. With experience, this can change… In this example you give, perhaps the programmer would have to revise the work. This would increase the cost– in a sense, both direct expenses and time are a cost. Perhaps you can get the same quality offshore, but it may require a longer time commitment. Now, if the developer can’t deliver, even with more time, then this is a serious quality issue–and perhaps even a cost issue… since you are buying something else entirely…
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Comment by offshore outsourcing on April 11, 2007 4:40 pm
I totally agree with you that cost and quality both should go hand in hand in all the outsourcing deals.
Comment by Outsourcing on April 20, 2009 1:42 am
There are many reasons for outsourcing and many aspects besides just the cost should be considered before clicking upon the deal. To know more about latest outsourcing practices and trends, one may visit http://pragmaticoutsourcing.com/ also.
Comment by shubh on April 26, 2009 11:00 pm