Outsourcing 101 – Introduction

The World is Flat

Outsourcing and offshoring is a mainstream business practice in today’s economy. Companies reach to outsourcing and offshoring to find cost savings, find expertise outside of their core business, and provide a follow-the-sun workforce. Blended costs for outsourced companies is lower than a purely domestic team by leveraging lower resource costs in other countries like India, Brazil, and the Philippines. Things are no exception where I work.

The Story

I have decided to document the transformation of my department into a global organization that embraces outsourcing and offshoring. I am also hoping that those that went through this process with me who read my blog will provide comments of their own, and keep me honest.

In The Beginning…

In the middle of 2007, my department decided to globalize our work force and find an outsourcing vendor. Other departments had experience with Satyam, Intellogroup, and Accenture. We decided to start with Satyam, as we heard the most positive reviews of their performance.

We put together a brief meeting and walked through our objectives of blending a global team to drive down costs. Over the course of the next 4 months, we focused our interviewing skills at a half dozen candidates for our first outsourced team member. The first candidate seemed to be a good fit for our team, and so we made short order in making an offer and getting a contract signed. But, in the 24 hours between interview and offer, the candidate mysteriously became unavailable. Interview followed interview, and all the candidates seemed to fall short of our expectations. It reached a point where the resumes stopped coming in. With only two months left in the year, we resolved ourselves to try another outsourcing company.

After reaching out to Intelligroup, we held a brief meeting with them. The meeting turned into an ad-hoc interview for one of the attendees. He seemed to be strong in .Net technologies, have a solid background in software architecture, knew enough about web technologies, and had project management experience. We made an offer, signed a contract, and on December 3, 2007, we had officially taken the plunge into offshore outsourcing and hired our onshore liaison.


My next post will talk about how we expanded the team to include our first offshore resources located in India, how we integrated them into the team, and some of the bumps and bruises we experienced along the way.

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