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Offshore Information Technology Outsourcing Myths – Part 3 (Conclusion)

Cost of initial migration

The very best method of mitigating the concern of major upfront expenses is via a transparent and closely aligned partnership. Both parties can work together in order to construct a business case that will satisfy both sides; for instance, the initial cost can be reduced in exchanged for a multi-year commitment that will enable the outsourcer to effectively make the required investments on behalf of its clients.

• The fear of losing control
Hmm, the loss of control can be easily tackled in a similar fashion with in-house departments. There should be strict policies and procedures implemented in order to ensure satisfactory compliance. One other great way of looking at it is that the effective separation of duties via an outsourcing partner even allows for an increased, instead of diminished control.

• Intellectual property matters
In a case where intellectual property is a major concern, particular clauses can be written down into agreements in order to ensure protection. Well defined audit procedures that strictly adhere to compliance can be set up prior to the outsourced relationship start.

Other legal resources include the following:

– Non-compete
– Non-disclosure
– Copyrights
– Patents

The ROI of Outsourcing Has Not Yet Been Proved
Quite the contrary, components of ROI outsourcing has been shown over and over again. Actually, the best arbiter – The Marketplace – sure seems to have given outsourcing a resounding two thumbs up. Far beyond effectively reducing head count and staff overhead, additional advantages such as faster time to market and well improved quality of the finished product can surely achieve ROI of more than 400 percent in some cases.

These days, the question is definitely not if you will consider outsourcing, instead it is when and how do you plan to outsource.

Now that the myths of outsourcing have been explained, you will discover that there really is no cause for alarm as long as you know what you are doing. The most constant thing in life is change and it would be a real pity if you are unwilling to yield to positive change. There are still a lot of business owners who still think that outsourcing is meant for big firms and not for the small companies – well, these business owners are absolutely wrong, no matter how small your business is, you can sure take advantage of outsourcing tasks that you are not that good at so that your business can thrive.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

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