| Evaluating Offshore Outsourcing |
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How much money will I save by offshore outsourcing? |
Naturally, each
engagement is unique, but savings typically range from 20% to 50%. Savings
are often lower the first year and increase in subsequent years. |
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Besides costs, what benefits would I gain from offshore
outsourcing? |
Businesses of all kinds have gained competitive advantages
from outsourcing.
These are some of the benefits cited by businesses who
outsource: |
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Greater speed to market with products and services |
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More flexibility in executing different types of work |
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Access to a
large pool of high quality resources |
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Same or improved quality |
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Ability to refocus in-house staff on more strategic projects |
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What
are the hidden costs of offshore outsourcing? |
Although the overall costs
will be lower, offshore work incurs costs in several areas not seen in
onsite work, such as travel, international phone calls and developer
licenses. Rixyncs' engagement model effectively minimizes these
costs. |
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Is offshore work appropriate for small and mid-size
businesses? |
The "critical mass" criteria for going offshore has come
down dramatically as offshore management processes and procedures have
matured. Projects as small as $50,000 can benefit from the cost savings of
offshore development. Because the largest Indian firms with 10,000+
employees focus on "mega-deals" with large business clients, they would not
be the best choice for executing small projects. Rixyncs' mid-size facility
is ideally situated to assist small and mid-size businesses looking to
offshore. |
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What risks are involved in offshore delivery? |
As a
maturing industry, many of the risks associated with offshore have lessened.
Below are some frequent areas of concern and how they are addressed by
Rixyncs: |
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Communication: A detailed communications plan and procedures
are a standard part of our delivery methodology. Collaboration tools and
"soft skills" training of our offshore employees further ensure a high level
of continuous communication. |
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Turnover:Our offshore facility has
lower than average attrition rates. |
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Environment Equivalence: We'll
make sure your development environment adequately represents your production
environment. |
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Data Security and Business Continuity:Our Indian
facilities have a strong focus on protecting our clients' data and
intellectual property. Some of the provisions are: |
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How do I know you can deliver what you promise?(I've heard there are many fly-by-night offshore firms.) |
Rixyncs has been
in business over 8 years, meeting our clients' expectations of quality
service and innovative IT solutions. Our offshore facilities and our project
managers follow a proven project management methodology, incorporating
industry best practices and metric-gathering mechanisms to ensure your
project is executed smoothly. Your project coordinator has years of
successful offshore delivery experience. |
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| How do you ensure
requirements get communicated? |
| Requirements are gathered locally by
Rixyncs' onsite personnel, and detailed documentation captures the
requirements. Additional factors ensuring coordination and communication
include project management processes, delivery director oversight, regular
status reviews and secure connectivity/collaboration tools including leased
line and a project intranet. |
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| How do you ensure the code will be of
high quality? |
| n addition to extensive testing and code reviews, we have
Senior Technology Council that audits code and monitors the quality of code
written by each developer. Defect Density (bugs/line of code) is closely
tracked across all projects and is well below industry standards. |
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| Aren't IT wages in India going up? |
While demand for IT workers in
India is high, the supply of IT skills is greater than anywhere else in the
world. India graduates 10 times the number of Computer Engineering graduates
than the US does. Even with the current rate of increases, U.S. firms will
still save significantly by offshoring appropriate IT work to
India. |
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| Why not other countries? |
| I hear it's even cheaper than India. |
| Eighty
percent of U.S. IT offshore is going to India. The offshore IT outsourcing
industry in India is tested and mature. While rates in other countries are lower, the
market will not reach the maturity level of India's for at least 10 years.
English language skills remain a significant barrier. |
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| Additional
advantages to offshoring in India include a large base of world-class
software professionals educated in a rigorous academic system; national and
state government agendas that strongly support the IT industry; and,
infrastructure policy and investment initiatives to promote the development
of IT. |
