Outsourcing Locally vs. Overseas

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The main point in Outsourcing is to lower your cost, this can be easily achieved with the use of lower paid people in a foreign country. This makes sense, get the work done and pay less… Or do you.

As we have discovered from many blogs that discuss “Local and Overseas” there are many plus’s and minuses. On one hand you payless most of the time up front, until you do the numbers.

Case 1:

A website designer has outsourced to a company in India, the original rate was locked in and the work order

[description of the job and client notes] passed over with limited details on the nature and client information.

fooboo-whatisWeek One: the draft material was submitted and could not be read as the grammar was poor, the images offered did not come close to the request and the middle-man described an issue with the people wanting additional funds.

Week Two: several calls then ensued and the people doing the work could not be contacted, another invoice was sent for further funds to release the work already paid for. At this point the project was now a week behind and future elements had yet to be sorted…

Week Nine: more communication was entered into and the original middle-man was not available, another party had stepped up and with the promise to send more money all would be revealed. This scenario is familiar and continues to occur, the client finally stopped chasing the people in India and contacted My-Designer.me , they undertook the work after a 2 hour meeting, completed a scoping and discovery exercise on a Mindmap that clearly outlined the required site and it was delivered inside of 12 days, [Budget $1200.00, Timeline 14 days].

Case 2:

A manufacturer in Sydney had advertised for an App to be built that could support there teams in the field, Job tracking and Part’s Management. The accepted a proposal from a company in Israel, good references and sample code that worked.

Month One: Two company experts travelled to Israel, the spent a week and the revised the original budget, it increased by 33%, then they removed 3 key functions and dumbed down what was in the original specification.images

Jump to Month 14: yes – 14 months later and over $110,000 and counting this firm had yet to see a working version of the App.

My-Designer.agency, (in NSW) had a template working, with two of the three main features ready for field trials.  Project completed on-time [Budget $4000.00 , Timeline 120 days]

 

Outsourcing to an Overseas company should be manageable in this era of communication. It needs experience and skills at both ends of the Workflow.

In recent months we have seen an increase in the failure of Overseas Outsourcing, in addition to the obvious issues we highlighted, you also face difficulty in “Issue Management”, “Getting refunded” and ” Language”.

What does work is when a locally sourced Outsource firm is in communication with overseas people who have already built a solid rapport with can allocate parts of the project and continue to have local Project Management Control.

There will always be excepts to the rule, some people will tell you they are doing it successfully. But our research has shown a much different picture of “High Cost” and “Low Performance”.

Get good advise and listen to the experts who can back up the claims with proven outcomes.

 

By | 2017-07-18T12:35:08+00:00 October 22nd, 2016|Business, Creative, Design|0 Comments

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