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Outsourcing Strategies

How to Evaluate Outsourcers

25.07.2008 09:42:02 While it is beyond the scope of this article to identify a detailed checklist for evaluating outsourcers, their alternative solutions, and their contracts,

(live-PR.com) - I believe the following criteria can be the basis for you developing your own framework for evaluating and selecting outsourcers/outsourcing companies (including some typical questions):


1. Commitment to Outsourcing: outsourcing is unique and in many ways requires expertise above and beyond typical system integration services. It requires specific methods and experience.

* How long has the company been in the outsourcing business?
* How is their company organized in terms of staffing, commitment to specific customers and industries, dedicated to solving specific problems and needs? What percent of its revenue (and profits) comes from outsourcing?

2. A Flexible and Proven Methodology/Function: due to the short time frame that will be available once the outsourcer takes over your IT business, there will be little time to find your way through the quicksand of technical and management issues. A flexible and proven methodology will provide your outsourcer the necessary base and the tools to create an environment that will meet your specific needs.

* Do you/they have a standard methodology? Is it fully documented? To what extent is it used?
* Has it been used successfully in the past? Where has it proved unsuccessful? Why?

3. A Pathway and Access to Talent: Executive management, project management, programming and testing talent is key to any solution. The ability to bring in expertise (or at least a number of smart bodies during critical periods) will be crucial. This is especially true if you may need off-shore designers, programmers, and testers who are usually less expensive and more familiar with older technologies you may have (e.g., it is estimated the correcting millennium problems in the U.S. will cost $1.00 - $1.65 per line of code - but perhaps up to only half that amount in India, Ireland, and the Caribbean).

* How big is the outsourcer staff in terms of: consulting staff? Analysis staff? Design staff? Programming staff? Testing staff? Documentation staff? Implementation staff? Help desk? Knowledge in terms of mainframes, customer server, telecommunications, etc.?
* Does the outsourcer have a relationship with off shore or domestic programming "factories"?
* How does the outsourcer accomplish training and integration of staff?

...continued at www.outsourcingstrategies.com/Outsourcing/How-to ..

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