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Understanding the Right Outsourcing Partner

The most important step after having decided to outsource your software development to offshore companies is identifying the right outsourcing partner.

This step is pivotal in the outsourcing experience, and decides the direction that your resource will take. Your development partner and you will be embarking on a business relationship and your partner's business practices will have a direct impact on your resurce. The repercussions of making the wrong choice at this nascent stage will be severe. Therefore, the importance of identifying the right outsourcing partner cannot be emphasized enough.

Although there can be no guarantees at such an early stage of a business relationship, it is always wise to make the most informed decision, to minimize the outsourcing risks that you might encounter. It is imperative to obtain as much background information about your prospective solution provider, before zoning in on any one source.

The following pointers could serve as a rough guideline while choosing the right outsourcing partner.

Past Records:

Useful information about the company's experience, which include the kind of clients they have catered to and the number of projects they have handled are important indications of their capability. It will also help you decide whether the provider is suited to your project.

It is also useful to ask for profiles of the company's board of directors and their key people, to have a better idea of the backgrounds and experience of the people who run the outsourcing service organization.

Ensuring that your solution provider is financially secure is another key factor in outsourcing management.

Communication :
The most common problems faced by companies who decide to outsource to offshore locations are those of language and cultural discrepancies. It is important to see that you communicate effectively and understand each other's requirements, in order to minimize misunderstandings.

The difference in time zones could also cause communication difficulties. Accessibility at critical junctures should also be considered as a factor while selecting your outsourcing partner.

On a practical level, this would involve regular access to a clear, reliable communication link, be it e mail, phone lines or instant messaging. Ensure that your outsourcing service provider has access to good communication channels.

Understanding Business Objectives:
Finding an offshore service provider who understands your business objectives is integral to the smooth execution of your project.

You must have a business strategy that matches your needs with the needs of your provider in a realistic manner. For example, you might be looking for a temporary partnership while your provider might be looking for a long term one.

Once your objectives and strategies are understood by your partner, it becomes easier to communicate standards, targets, changes and updates on performance.