St. Petersburg, Russia. October 3, 2007 – ETNA Software, .net and java solutions provider, revealed insights on why many offshore outsourcing initiatives fail even before they take off. Among top issues are the lack of trust between parties, ad hoc outsourcing management and client’s sole focus on price.
Particularly, ETNA Software revealed that establishing the culture of transparency and trust on both sides is vital for outsourcing success.
Roman Zhukov, CEO & President of ETNA Software: “Actually, the most successful projects we have accomplished had less control and more productive cooperation. On the contrary, the failed projects had the following symptoms of mutual distrust, strain and resulting collapse:
- Decision rights between the parties are not clear / consistent
- Customer’s business units lack a clear understanding of what we are able to deliver
- Both parties are unable to anticipate each other’s behavior. Low level of predictability
One simple way to mitigate offshore outsourcing risks and lay foundation for trust is to invest in pilot projects. Pilot projects are the stress-free way to get to know each other and have time to develop future longer-term outsourcing relationships.
“What could give you more information about a offshore vendor’s processes, and more reasons to trust them, than low-risk short-term initiatives with potentially attractive service providers?” comments Alexey Linkov, VP Marketing at ETNA Software.
It is said that offshore outsourcing, particularly handing off the development of software solutions to third party offshore, has now become a commodity.
Surprisingly enough, 48% of ITO/BPO buyers feel they lack experience to go offshore and another 37% confess they lack skills to manage outsourcing, according to the recent PriceWaterHouseCoopers survey .
Visit ETNA Software’s “Smarter Sourcing†website now to learn other insights on why outsourcing projects fail and how companies can mitigate risks associated with offshore software delivery.
