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Offshore Outsourcing to India - A shift in motivation
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Outsourcing Overseas? Read This First For many prospective buyers of outsourced IT support from overseas, a quote from E.M Forster nicely sums up the dilemma: 'Nothing in India is identifiable; the mere asking of a question causes it to disappear or to merge into something else.' Of course, not all IT supply from beyond these shores comes from India, but I think the point is well made. At a time when outsourcing abroad seems such good value, where do you begin? Through the long and sometimes painful experience of sourcing suppliers of IT services--predominantly from Asia but also from Australia, the US and the rest of Europe--I have established some definite dos and don'ts for selecting suppliers. First you have to narrow down the field to a handful of companies that cover the specific services you require. Start your research with trade missions, embassies and consular offices in the UK. A major part of their remit is to help UK companies buy from the appropriate organisations in their countries, so ask for their assistance. If you do not get the information you need the next step is searching via the web. Use search engines to highlight the particular services you require. You will not be short of contacts. Then, as with any other supplier, you need to meet with your prospective provider. I know the whole point of outsourcing is to save time and money, but just because an IT company is 6,000 miles away doesn't mean you shouldn't give it a personal viewing. In fact, it is the very reason you should satisfy yourself of your selection. You wouldn't put a significant part of your future in the hands of a company down the road without being sure of its credentials, so you certainly should not treat an organisation in Calcutta, Melbourne or Tokyo any differently. By narrowing down your choices to one major metropolitan region you can review a half-dozen prospects in two days. When you arrange appointments, make sure you meet the principals of the business, heads of department and, just as important, those who will be working on your account. You have to be confident that they are capable and understand your needs. Check the work case histories of designers and programmers. Ask them about their previous work. Is it theirs? You must insist you have two teams working for you: one to work local hours, and one to work UK hours. If you don't, gaps in communication can occur, and projects can merrily progress in the wrong direction before you realise it. It is also important that the supplier has its own research and development unit. This does not mean having a department that tries to compete with Microsoft on global breakthroughs, but it is important that it tracks new opportunities and techniques and can incorporate them into your work. Similarly, you should be satisfied that the company covers all creative and technical disciplines. If it doesn't you'll get whatever it knows best, whether it is right or not. You must also insist on one point of contact to account manage your business. Given the distances involved and the potential for confusion--or for shifting blame--it is essential that the communications chain is as simple as possible. Another key factor is making sure that those who work on your account speak good English. The work they produce will almost certainly be for the English market, and they may well have to have conversations with you and others within your company, and other suppliers. The best way to check this is to listen to them talking on the telephone to other English speakers. You will soon know how good their grasp of the language is. When doing business overseas there is a great temptation to let local customs, culture and an innate sense of diplomatic fair play overcome business principles. In this situation, many companies forget who is in charge and end up doing business on the supplier's terms rather than on their own terms. I hope that I'm not coming across as some form of modern-day gunboat imperialist, but it is your money we are talking about, and it is important that it is spent in the way that gives you the best return. Michael Caine said his father told him that if you are sitting around a card table wondering who the mug is, then the chances are its you. Don't put yourself in this situation. And finally, it is important to make sure your selected partner visits your premises in order to understand your company work ethic and culture. It is all very well that the company has a good understanding of your aims and communication needs, but this has to be put into context in order to produce an end result that reflects the required look and feel. So that is my rough guide. There are some very, very good IT companies out there that can provide significant cost savings. If you decide that this is an option for you, make sure you do your homework and get the right supplier. If you don't, sitting on the plane on the way home wondering whether you have made the right decision may be the beginning of an expensive and uncomfortable journey. Peter Sowerby is the founder of Outsourz, an organisation that sources, vets and account manages overseas IT supply to companies in the UK.
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