IT Outsourcing problems and solutions
IT outsourcing problems and solutions
This blog is about IT outsourcing problems and solutions based on hands-on experience from the real world. These are some of the problems and issues you will be dealing with when you start outsourcing. Instead of spending your time explaining how things are in your end of the world try to understand things from your supplier’s point of view. You have to remember that that the owner of the company, or the foreman of the team you’re working with most likely understand that some of the problems your project is facing should be avoided, but for a number of reasons they cannot do anything to prevent it. This is where additional knowledge and understanding from your point of view is required.a
A partial list based of problems you may experience:
Lack of response from the supplier, you send an e-mail but do not get any reply back – This is a typical problem which can occur for a number of different reasons:
- The supplier has technical problems developing your system, and instead of giving you the full story everyone now working 18 hours a day trying to find a solution. For the supplier it facing threatening to give you the full story and he would rather risk losing a client by not answer in e-mails or phone calls than telling the truth and face the music. him
- The supplier has problems with other project requiring that the people working on your project have to be moved to another project and thereby leaving your project stranded. Needless to say the supplier not very keen to talk to you while this is going on.
- One or more developers on the project are sick or have gone on vacation without giving proper notice. The supplier knows this is wrong but can do nothing to prevent it. Again to save face he will avoid dealing with you directly while this is going on.
The supplier lacks the necessary skills, this happens because:
- The supplier promised more than he could deliver during negotiation (The supplier never had the technical skills needed, but was banging on being able to find the people necessary when needed for the project).
- The people originally scheduled to work on the project left company, became sick or for some other reason was not able to fulfill their duty.
- The project turned out to be more complicated than was originally thought. The people working on the project are therefore struggling and the project incur delays.
Other miscellaneous problems
- Problems with Internet connections, in Third World countries Internet connections are not always that reliable.
- Brownout meaning that there is no electricity for longer period of time. As crazy as it sounds, this happens again and again in Third World countries, without electricity there is no output.
- Employees cannot come to work due to infrastructure problems, for instance flooding during the rainy season, traffic chaos around holiday times when everyone are traveling to and fro.
Cultural differences
- In Third World countries the family is everything. If a family member has a problem everyone in the family have a problem. It is normal that employees stay away from work if someone in the immediate family has a problem or is in need of assistance of some sort. Needless to say if a person stay away from work nothing is produced.
- Inability to understand urgency. In Third World countries people tend to take one day at a time without any urgency. This is especially true if the person or persons you are working with grew up in the countryside away from the main cities.
- Inability to understand the meaning of quantity. Your perception of quality and your supplier perception of quality may be two different things.
Suggestions to how you avoid some of the above problems:
- Remember that you supplier should also hard that blood is coming out of the eyes. You may get a good price but there will be no loyalty.
- Be happy that things cost less, don’t focus too much on whether 1.5 or 1.7 hours were used on a particular task. Look at the overall picture, are you satisfied? If the answer is yes then continue if the answer is no then stop.
- Remember always to send an e-mail when you agree to something for instance after a meeting. It is very very important that your project documentation always is current. Remember that the supplier most likely does not have a system place to handle the documentation hence you have to do it yourself.
- Get a list of public holidays, ask your supplier if the President/Prime Minister/King has a habit of declaring additional holidays (above and beyond the normal public holidays). If this is likely to happen get a list of dates so that you can schedule around it.the
- When you go on holiday make sure that you clear up with your supplier what they will be doing on the days you’re gone.
- Before you start working with the new supplier, speak with the people who will be working for you preferably using a video cam (Skype is perfect for this). That way it will be very difficult for the supplier to change your team around without first informing you.
- Ask if the supplier has a redundant Internet connection in case the first one fails. (The Internet will guarantee fail one day, and that will be the day when you least needed it to fail)
- If the project is mission-critical for you then you may consider visiting the supplier before starting the project. Visiting the supplier would give you a much better understanding of the supplier’s business. Aside from that you will be able to meet the people who will be doing you a particular project.
- Before starting on a project speak to customer references. If the supplier is hesitant providing you with customer references then you should be hesitant buying from the supplier.
- Read about the cultural backgrounds of the country where you outsource.
This blog was written by Peter Skouhus. Peter Skouhus is president of 1902 Software Development Corporation, an IT outsourcing company based in Manila, the Philippines.
You can read more about 1902 at http://www.1902software.com in English.
You can read more about 1902 at http://www.1902software.dk in Danish.