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HOW TO FIND A RELIABLE SUPPLIER |
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> How to get in touch with a reliable supplier |
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Are you anxious to reap the rewards of outsourcing? Beware, it can be a
hazardous enterprise - at present over 40% of offshore initiatives do not
yield the anticipated cost saving. So how do you succeed where others fail?
How to build a trusting long-term relationship of mutual benefit:
Check out the area, is there:
A proficient low cost labour pool with:
• sufficient software engineers
• sufficient project managers and software architects
• sufficient members of staff with language proficiency
Preferential and favourable legislation with:
• tax rebates
• accreditation systems for software enterprises
• strict enforcement of intellectual property rights
• special training facilities
• preferential investment and financing measures
Efficient infrastructure with:
• good transport system
• good communication links
• provision of hi-tech software parks
• adoption of international business protocols
Check out the supplier: do they have…
• at least one field of expertise ………….(can be proved with a pilot project)
• good communication links
• security in place to protect confidential information
• a realistic evaluation ………………………..(not promising what is beyond reach)
• service delivery reputation with well monitored milestones and
deliverables.
• good staff retention ………………………..(sufficient human resource backup)
• risk mitigation policy in place…………..(mechanisms for disaster recovery)
• continuing R&D investment
• financial stability ……………………………..(accurate and trustworthy financial
record)
• quality certification ………………………….. (certification such as CMM and CMMI )*
• proven record …………………………………….(referenceable contacts )
• international standard of business etiquette
• solid project management capability …(SQA and SCM)*
*Terms of use:
SQA: Software Quality Assurance
SCM: Software Configuration Management
CMM: Capacity Maturity Model
CMMI: Capacity Maturity Model Integration
General advantages and disadvantages of the various hot destinations of
outsourcing.
1）India
Advantages
• Pioneer in the field
• Proficient in English
• Advanced technology
Disadvantages
• Mushroom growth has led to little overall supervision of the industry
• Rising costs
2）China:
Advantages
• Strong government policy support
• Increasing number of managerial staff returning from abroad
• Strong emphasis on training
• Large number of software engineers available
Disadvantages
• Late entry into this field
• Spoken English needs to be enhanced
Fewer companies with CMM3, CMM13 certification
3) Central and Eastern European:
Advantages
• Credible markets for European clients
Disadvantages
• Higher costs
4）Southeast Asia
Advantage
• Strong awareness of Intellectual Property rights protection
• Low costs
• Pool of expertise.
Disadvantages
• Lack of sufficient experience.
Author: Betty Zhang from www.shanghai-digital.com
E-mail: nzhang@shanghai-digital.com
Editor: Sally Berry, Research Manager.
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