Tag Archives: Offshore Tips

Outsourcing Associations

Finding outsourcing vendors is not a trivial task sometimes because it’s just too many to chose from, sometimes because you just cannot find any that fit a particular criteria.  Over the years I found that generating a list of prospective vendors can often be done with a help of organization that unite offshore vendors in some manner.  As it turned out it’s not easy to find these organizations is not to easy as well, so I started a list that should be of help. So far the list is not to big and I was only able to find 20 some organizations, I hope that with your help the list will grow fast.

The list below includes top 5 associations based on Alexa Global rating.  Click here for the full list sorted by Name, here for the list sorted by Alexa Global, and here for the list sorted by Alexa US.   If you know of a site, directory or service with is worth including please comment on the page and I include in the list, feel free also email me at krym2000-po @ yahoo . com as well.

Name PR Alexa Global Alexa US Description
The International Association of Outsourcing Professionals (IAOP)
5 313,474 168,529 The International Association of Outsourcing Professionals (IAOP) is the global, standard-setting organization and advocate for the outsourcing profession. They claim to be the leading professional association for organizations and individuals involved in changing the world of business through outsourcing, offshoring, and shared services with a global community of more than 110,000 members and affiliates worldwide.
The Outsourcing Institute (IO)
5 423,525 246,289 Founded in 1993, the Outsourcing Institute (OI) claims to be the world’s biggest and most trafficked neutral professional association dedicated exclusively to outsourcing with a network of more than 70,000 professionals worldwide including qualified outsourcing buyers. Their specialties include: outsourcing, sourcing, thought leadership, state of the industry, marketing, promotions, RFP, vendor selection, relationship management and governance.
National Outsourcing Association (NOA)
5 893,216 27,276 Founded in 1987, the National Outsourcing Association (NOA) is the UK’s only nonprofit outsourcing trade association and claims to be the centre of excellence in outsourcing. Their services are focused on delivering education, excellence and collaboration and they are involved in all areas of outsourcing, including ITO, BPO and KPO.
Russian Software Developers Association (RUSSOFT)
5 902,435 55,451 Established in 1999, RUSSOFT Association is a nationwide association of the technically competent software developing companies from Russia and Belarus. It aims to represent Russian software development companies on the global market, to develop marketing and PR activities of its members, and to promote their interests in their countries’ governments.
Sourcing Interests Group (SIG)
4 1,010,363 271,503 Sourcing Interests Group (SIG) is a membership-driven organization comprised of sourcing and outsourcing professionals. They claim be acknowledged by many as a world leader in providing an ongoing forum and services to assist companies in strategy development, the improvement of goods and services sourcing, and the implementation and management of corporate services through outsourcing, offshoring, insourcing and shared services.

Outsourcing Governance

A couple days ago I received an email with a very interesting question –

Hello Nick,

I have come across your blog (http://pragmaticoutsourcing.com) while doing some secondary research.

I have been quite impressed after reading your blog, and hence writing to you to seek your pro bono help :)

As you have such a good depth and breadth of outsourcing experience, I would like to seek your opinion on this:

- Many Companies who Offshore their IT/Product Development to Russia, India, China, etc. face many challenges during the projects execution phase. They spend significant management overhead in managing their vendors. They may need to make multiple trips to the outsourced location to resolve issues. So there are significant costs/pains involved
– Would such Companies like to hire third-party consultants, who work as their agents and be physically present with the suppliers, does the Program Management function (tracking of projects, timelines of deliveres, identifying and sharing potential issues/challenges, metrics reporting etc.) and help reduce the costs/pains of managing the outsourcing vendor?
– Would such Third-Party Consulting services be attractive to Companies who Offshore?
– If No, Why?
– If Yes, Why? Do you know of any company providing such Consulting Service?

Your opinion would be highly valuable to me. I am eagerly waiting to hear from you.

Thanks,
Sujay

Yes, Sujay many companies can take advantage of these kind of services and providing them could present a very interesting and lucrative opportunity. As a matter of fact many companies are already in this business and offer large portfolio of services related to managing the full cycle of outsourcing (not necessarily only offshore) engagements.

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Trip to blogosphere

Outsourcing is a very broad topic with plenty of controversial topics, inevitably there plenty of people who have something to say about it. Chances are if you are interested in this subject you run across articles and posts by Outsourcing Institute or Horses for Sources. A couple years ago I put a few references in my blogroll and started a blogosphere directory. Thanks to the law of reciprocity that generated a few back-links and traffic to my blog. Over time the blogroll become stale pointing the blogs that become dormant or completely disappeared. I did not notice it till just recently, as I was doing some cleanup of the blog.

Similar to my freelancing directory the blog roll needed to be refreshed. In addition to cleaning it up I decided to create an outsourcing blog “directory” as well. And with no hesitation I went on blog hunting with a help of my fearless VA Yesha, looking for blogs that cover outsourcing. Very soon we had a list with more than 100 entries, unfortunately, many of them covered topics that I am not too familiar with and/or not too interested in such as Law Process Outsourcing or blogs solely focused on BPO. So we went back pruning the list getting it to less than 50 entries. Some of the blogs that got the ax were fairly active in outsourcing blogosphere, and I may include rejected entries in the list later on after I get a chance to check a few posts and see whether they are worth considering. Of course what’s one man trash is another man’s treasure, so “worth considering” is a very subjective term. Plus in any blog the posts are typically hit-or-miss, and even loosely related sources can put some interesting article once in a while. Well, I cannot create full directory, even with help of a couple dozen of Vas, that’s why we have omnipotent Google.

Anyway, please see the list sorted by URL of the blog on this page. To make the list a bit more helpful I added PR and Alexa ratings in the same manner as in my freelancing marketplace directory and created two additional versions of the list, one sorted Alexa Global and another by Alexa US. As usual, feel free to comment and suggest new entries. I am planning to update the list in ~12 months from now.

5 Rules of Luck with your Potluck

The month of October is almost over and I have not written a single post. Well, I do need a day job and it’s been incredibly demanding over past few months. A number of projects that kept roughly 50 people working over a half a year are in the finishing stage. Multiple systems that have been developed over that period have to integrate and start talking to each other in production in just a few days.  No surprise it keeps me away from blogging, yet I’ve committed to at least one post a month and there is no way around it. By the way, talking about distributed projects, why are they so… insane?

Have you ever tried to setup a potluck with say 10-15 families? Everyone needs to come in at approximately the same time, bring the food they committed to making, warm it up, set up table, and party on. Pretty simple task isn’t it? So let’s throw in some complications, typical in IT world. The families have to fly in from  different parts of the world. Some of the families never met each other. Some of them do not like each other. Some speak different languages. You have disagreements on menu, confused about dietary restrictions, and the place of meeting is in flux. Your – the organizer – have to deal with your own waterfall of issues – mortgage refi, kids school troubles, broken plumbing, in-laws arriving unexpectedly, less than encouraging results from the last physical, and a recent escalation of tension with your boss… And there are only a couple days to the party. OK. Now I think we have a good metaphor for what my team have to accomplish.

As a matter of fact that is a good metaphor for many complex SI projects I’ve been through. Are there any recipes for avoiding a disaster? Any medicines to take? Well, there is no panacea or silver bullet. Maybe just a few basic guidelines:

  • ‘Too many cooks spoil the broth, and half-a-dozen gentlemen aboard one ship are as bad as two kings of Brentford.’ [1855 C. Kingsley Westward Ho! II. vii.] There are more quotes and proverbs stating the same point that I can possible number. And the guidance in this case is very simple; it was clearly stated in ’86 movie Highlander – “There can be only one”. There can be only one head of the engagement with authority across all troops involved.
  • Collaborate or die. That’s almost a truism when it comes to distributed engagements. Yet, I am still looking for a team, an engagement, or at least a project on which all stakeholders agree that they have no communication issues and nothing can be possibly improved. So do you best and of course when it comes to communicating use common standards, common language, common tools – or should I just say “Remember the Babylon!” ;)
  • Eliminate the waste. When it comes to final stages of engagement the troops are tired, the deadlines are tighter, pressures are higher, and inevitably, the team’s ability to employ common sense deteriorates. I have seen unnecessary testing cycles, stupid mistakes, round about ways to address the issues, “group grope” meetings and other wasteful activities proliferate at astounding rate as engagements get closer to the end. A JavaScript error triggers call to a DBA who engages in hours of troubleshooting at database level. Configuration change pushes QA Manager to request a full round of regression testing. A tag naming discussion turns into 2 hr long all-hands. And so on. Stay on look out and eliminate the waste with the vengeance.
  • Don’t change horses in midstream. Adjusting your methodology, changing processes and procedures are better left to discussion on full stomach, when all the potluck meals have been served and consumed. Implementing even most brilliant SDLC improvements does not belong to the final stage of engagement.
  • Watch the clock. I am not talking about counting the minutes left till the launch press conference, no, I am talking about hours your best performers put on the project. There are limits to what even the strongest members can continuously put in without deterioration in productivity. A minor mistake by a release manager who has been working 70 hrs a week for past two months will throw you back completely destroying the gains built to date by all that overtime.

Boy, I’m looking at the list above and I see that we broke all these rules… no wonder the only time I have to write this post is 4 AM ;(

PO Trip Adviser: India

Continuing with a line of travel guides I turn to the most common outsourcing destination – India. There are a plenty of outstanding travel guides for India, so if you are planning to combine business and pleasure, and see places such as the Agra, Rajasthan, and Kerala make sure you study them before you depart.  Keep in mind though that most of the most interesting places will take dedicated and possibly considerable time, for example while Taj Mahal is fairly close to Delhi / Noida the trip there is going to take you at least a day.

For those of us who are limited to strictly business, here are a few tips to consider:

  • A Visa is easy to get, but it may take a few weeks so allocate sufficient time.
  • Safety of travel in India is not what it used to be just a few years ago, yet large outsourcing cities remain quite safe for majority of business travelers.
  • Shop around for tickets and ask frequent India travelers for advice. Chances are you can find something 30% less than standard internet rates using Indian travel consolidators.
  • Chances are you will arrive in India around midnight. I typically go straight to a hotel right near the airport and start my business day the next morning.
  • Stay in nice hotels, 4-5 stars. They are relatively affordable and the high quality service will help you to retain the energy you most certainly need.
  • Ask the vendor to arrange all your travel and have a car with a chauffer. Don’t even think about driving in India. The traffic and road system is not for the faint of heart plus they drive on the wrong side of the road!
  • Petty corruption is widespread in India, from expediting you through airport customs to dealing with government agencies and employees can involve bribing or “tipping” as it is often referred to. My advice it to stay away from it.
  • Make sure you have your personal belongings partitioned among suite cases and carry on. Lost luggage is a fairly common event. Use solid suitcases as mishandling is also common at airports.
  • Don’t wander off the beaten track, don’t encourage beggars, don’t visit shady places, don’t leave your valuables unattended, don’t put your wallet in your back pocket, use licensed guides in sightseeing – basically use common sense!
  • Eat only in good restaurants or at your hotel. Avoid eating buffet meals, even in high-end places. Not only drink bottled water, but also brush your teeth with it.

PO Trip Adviser: Russia

While working on a outsourcing destinations chapter for my book I realized that tips for travel in many countries could be helpful to those not accustomed to traveling to third world countries and other outsourcing destinations.  Of course there are plenty of books, websites and forums covering travel to any place in the world.  I am not planning on competing with them in any way, my goal is create a simple list of items to keep in mind when visiting a vendor far away from your home becomes necessary.   I am planning to put a couple posts covering few countries that I have a fortune to spend time in and let me start with the one that I lived in for 30 years…

So, here we go – a few tips on traveling to Russia – one of the top Eastern European outsourcing destinations:

  • Visas are required and getting one can be a tricky process. Make sure you allocate at least one month for processing the paperwork.
  • Unfortunately terrorism and street crime are a part of daily lives in many parts of the Russia. Still, on a relative scale, Russia, and especially the tier-one cities, are safe and great places to visit.
  • Shop around for tickets. If you know any Russians who stay connected to their motherland, ask them for help. There are many Russian travel agencies that can find great deals on tickets.
  • Staying in nice hotels can be price prohibitive, particularly in tier-one cities. Ask your vendor for help with travel arrangements.
  • You can rent a car and drive in Russia. Be prepared for a manual stick shift and very aggressive driving styles. You may face very serious traffic and won’t see any signs in English, so finding your way can be a challenge.
  • Ask your vendor to arrange sightseeing for you. Due to large distances and complexities in city navigation, you would be much better off on a guided tour. And I assure you Russian cities and their suburbs have a lot to offer a curious visitor such as architecture, landscape and even shopping.
  • Ask your vendor for recommendation when it comes to restaurants. Nowadays, especially the big cities, offer a great variety of styles and cuisines but the cost can be astronomical. Just like many other destinations, not only drink bottled water but also brush your teeth with it.
  • Prices are generally quoted in rubles. Currency can be freely converted at banks, hotels or kiosks specifically for tourists.

If you have any suggestions, ideas or tips on travel to Russia please comment or email me, I’ll be happy to update the list.

Hidden Meaning of Common Phrases

A while ago I started covering multiple aspects of negotiations as they relate to offshore outsourcing. The topic of negotiations is broad and multi-dimensional. Some of the aspects of negotiations are applicable to communications at large, to the areas where regular conversations and negotiations blend in creating just a regular business communications. In that light I’d like to touch upon a very important subject – uncovering hidden meaning of conversations.

Business traditions, common aspects of professional communications and society rituals as well as personal preferences and needs change straightforward communications to slightly encrypted information flow that if not appropriately deciphered could become misleading, deceiving and confusing. Consider a very simple example: You present a system design to java architect who reports to you and after you presentation he says – “I like your system design but IMHO it lacks integrity.” What did he just say? Well, you probably know how to translate this sentence – “Your design sucks and if you were not my boss I would fire you on a spot”.

When working for decent company as a part of trustworthy solid team verbal maces of politics give way to WISIWIG communication style. Even though we still sugarcoat bad news and follow professional standards of communications there is not much hiding of true meaning in our conversations. The situation is quite different when it comes to sales process and negotiations between not too close partners. That’s why you need to study a few techniques that give you the insider look into hidden meanings of conversations.

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