The Risks Management in Offshore Outsourcing

Released on: December 14, 2007, 11:52 pm

Press Release Author: Hanu Software Solutions Inc.

Industry: Management

Press Release Summary: The most important thing is to find out if your offshore
outsourcing provider is aware of these risks and has a plan to either mitigate it or
eliminate it altogether.

Press Release Body: It is a well known fact that the offshore outsourcing (or any
type of outsourcing for that matter) carries known and unknown risks. The important
thing is to find out if your offshore outsourcing provider is aware of these risks
and has a plan to either mitigate it or eliminate it altogether. In this post, I
will share some of known risks related to offshore outsourcing. Risk One:
Requirement Misunderstanding - Many times it happens that the requirements get
written in a hurry to get the project started as soon as possible. This is okay if
the project is being done inhouse. However if it being outsourced, it becomes a
risk. If the specifications are not written properly or are incomplete or enough
details are not provided, the project will have problems on various fronts such as
Project Understanding - what needs to be done and delivered, Project Planning -
putting together firm dates for delivery, Change Controls - lots of change control
will be generated later on in the project life cycle, which could obviously delay
the project as well as increase the cost. Per the study conducted by Software
Engineering Institute, not enough understanding or the clarity around the customer
requirements is one of the top reasons on why software projects fail or get delayed.
In order to mitigate this risk, make sure that your provider has gone through the
requirement understanding phase before starting the coding phase. The requirement
understanding phase should have multiple rounds of discussion with all the involved
parties to fully understand and document their requirements in the Software
Specification Documents. This phase is independent of technology selected for the
project. The provider should also prepare the HTML mock-ups which is an excellent
way to capture the application flow. [These mock-ups should reused during the coding
phase for embedding the application method calls. Requirements Development: The
Requirements Development phase is about gathering the needs of the customer and
translate into requirements specification of what the system must do. Requirements
Development consists of three related activities: 1. Gathering User Requirements,
which is accomplished by interviewing the potential users about the system they
want, building the interactive prototypes, writing the Requirement Specification
documents. 2. Analyzing Requirements, which is about determining the acceptability,
implement ability, and testability. 3. Inspecting Requirements, which is
accomplished by discussing the proposed requirement in detail. The goal is to
identify the issues and errors related to the requirements ambiguities or
discrepancies. The deliverable from this phase is a detailed requirments document
which should get jointly reviewed and signed off. Your company\'s project manager or
designated contact will need to review the status of any deliverables as well as any
testing done, and be available to communicate frequently with the vendor project
manager. Most project problems occur to infrequent or poor communication between the
firm outsourcing, and the vendor. But the \"no news is good news\" approach is rarely
true; in fact, the opposite will often occur. One of the easiest ways to reduce this
risk, and to catch problems early on, is to initiate frequent communication, with
regular times specified for project reviews. Differences in development methodology
can occur, if one firm prefers an RUP approach with exacting specifications, while
another firm prefers agile methodologies. One firm may have a preferred tool in
place for source code control, or for coding standards, or for testing builds. These
issues can often be worked out by communicating the reason for each approach, and
then choosing a consistent methodology. Most frequently, you will ask the offshore
team to adopt your in-house methodologies, but you may be surprised to discover that
they have methodologies or tools that equal yours, especially if they have
significant experience in a technology. This is where teamwork, and communication
between the project and development team managers is critical. Related to
methodologies are evaluating how the firm being outsourced to handles sudden
requests for large volumes or rapid delivery. Check on how flexible and scalable
your vendor is, and whether they have processes in place for hiring additional staff
as required for larger projects. This includes having sufficient project management
staff in place to ensure adequate monitoring and communication with your firm. Ask
them: \"What is the smallest project you have worked on? The largest project?\" to
help determine whether they can scale to meet your needs. You will also want to
check references for projects that are similar to yours.

For More Info:
Offshore IT
Outsourcing


Web Site: http://www.hanusoftware.com

Contact Details: Hanu Software Solutions Inc. - Offshore IT Outsourcing: 212
Carnegie Center, Suite 206, Princeton, NJ 08540 USA. Ph: 609-919-6342 Email:
hanuseo@gmail.com

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