Offshore Today

India Offshore: Growth slowing

"India's revenue from offshore outsourcing will likely have single-digit growth in the fiscal year to March 31, 2010..." PC World "India's Outsourcing Industry Heads to Single-digit Growth"

This should not come as a big surprise. We have seen decision making in offshore outsourcing take longer and come through for less dollars. The need for development outsourcing continues to exist, especially in the Rich Mobile (iPhone, Blackberry...) and in SaaS (Software as a Service).

For Business Processing (BPO), transactions are lower (ie less airline tickets to process), however as the economy returns - BPO should experience growth.

"The BPO industry saw revenue growth decrease because the volume of transactions declined as some industries saw their business flagging... If people buy less, then there are fewer credit-card transactions, and fewer airline tickets to process. Once business picks up in the U.S. and other countries, the BPO industry is likely to see higher growth..."

However, will India experience the same level of offshore outsourcing prosperity that it once enjoyed, with competition coming from all corners of the world? Stay tuned.

Legal Process Outsourcing (#LPO): #offshore value for the #legal community.

Legal Process Outsourcing (LPO) have typically been associated with medium or large law firms. In this setting, LPO allows for quick ramp up of resources for filings, research, contract writing and other non-decision making labor. However, as discussed in a Prism Legal article; "Legal Outsourcing Tipping Point", corporations are leveraging LPO for their in-house legal requirements. And for more advanced legal services as well.

The article discussing Rio Tinto's (mining and ore processing company) use of LPO to reduced legal costs by over 20%. Further, this program by Rio Tinto, which is bringing on up to 24 Indian Lawyers, is more than just a low end legal labor and resourcing.

"People often assume that outsourcing and the options are applicable only to high-volume, low-value legal work. The Rio Tinto deal confirms this is wrong.” (Prism Legal Article).

LPO is a fast rising services sector for offshore outsourcing, with high growth rates expected in the coming years. Prism Legal maintains a list of LPO service providers.

Contact us today if your firm is considering LPO or other business outsourcing. We have relationships with top reputable service providers and can help you to select and manage same - with no fee paid for this service by the client!

Cloud Computing: An Outstanding Outsourcing and Offshore Opportunity

Cloud computing provides a new dynamic to outsourcing - and even offshoring of services. Cloud computing  "is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the internet (wiki definition). In other words, the user of the service does not own or need any physical servers or technology structure to take advantage of the given service.

Outsourcing is easy to visualize; that the service is being supplied by a 3rd party. However - do we know or care where the service is managed - thus an offshore angle. This is a global society - and if privacy concerns are mitigated and ensured, there is great opportunity to host services in countries where there are cost and labor efficiencies.

In a recent article on Cloud Computing and Outsourcing, another advantage for business:

"...Cloud computing will help create what he calls "a new lightweight form of real-time partnerships and outsourcing with IT suppliers." These relationships will offer companies more control and flexibility than traditional outsourcing arrangements, writes Hinchcliffe, largely because it will be easier to switch suppliers if you are dissatisfied."
Companies May See Outsourcing in New Light, Thanks to Cloud, ITBusiness Edge

Companies that can leverage their services in the "cloud" can reap tremendous benefits, both in good and challenging financial times. The challenge for the supplier is to provide incredible customer service (new features, support, uptime....) or be replaced. And this is another benefit for the client user.

Spotlight: Outsource destination - Pakistan

We were surprised at the strength of outsourcing to Pakistan, yet we have learned it is a strong offshore services community. As we reported, there are many global locations that have internal issues, yet remain viable offshore business locations. Mexico has the current drug wars, India has it's own issues as does the Philippines, yet they remain strong sources of valuable services. Apparently the same is true with Pakistan.

Truth is, we believe that the entrepreneurial spirit and a true eagerness to work resides in all countries. The recent uprising in Iran and the use of technology show that there is innovative spirit under any government or regime. In Pakistan, from a recent conversation with a business owner in the southern provinces - there is a strong thriving business community and enough labor to support high quality low cost services. "The trouble is mostly in the North," He spoke of the Taliban issues as if it was in a different country, and not kilometers away.

According to global consulting company AT Kearney, their annual Global Services Location Index (GSLI) increased the ranking for Pakistan from #30 in 2007 to #20.

"Countries are measured on 43 different attributes related to financial attractiveness, people and skills availability and business environment." (Business Week: Pakistan, A Popular Outsourcing Destination? Rachael King June 4, 2009)

As one of the comments in this article stated: most of the outsourcing is coming from the top 5-7 global locations. However, we believe it is critical to look at the services offered, the quality of the workforce, their innovation and costs - before judging if the location is undesirable. We remain optimistic about Pakistan and other countries that are below the top-three.

#Innovation: Is your #offshore #outsourcing partner delivering on the promise?

Innovation; "...a new way of doing something. It may refer to incremental, radical, and revolutionary changes in thinking, products, processes, or organizations." (Wikipedia definition) 

We are very passionate about Innovation and Innovative thinking.  We like to think that all entrepreneurs are innovative by nature - or are they? From our direct experience, we have found that entrepreneurs establish new concepts and ideas, yet they often need others to help fill in the gaps or to see around corners. Does your outsource / offshore partner help or hinder critical innovation support?

When it comes to offshore service providers, we have seen some of the very best - and worst when it comes to providing innovative thinking. In order to help an entrepreneur (or business owner) innovate, the partner needs to feel empowered to do so. They must be made to feel they are an important element to the team. Some service providers never seek this -- and therefore fail. Others make it a strong part of their process - to always probe and ask questions and offer alternative suggestions and ideas. When you find this partner - you are more likely to succeed.

Tip: When vetting partners for your project, see how they react to your business objectives in the initial conversations. Do they nod their collective heads and agree with everything you are saying or do they interject their ideas at key points - asking and probing? And do they offer ideas....  even before a contract is in place. If so - this is a strong indication of a successful innovative partnership.

A partner that helps you innovate is passionate about your success... 

If you are seeking a innovative development partner - contact Cross Sea Strategy. We help manage the outsource relationship - at no cost to you.

#Offshore Spotlight: #Legal Process #Outsourcing (#LPO)

The legal industry is under extreme pressure to make themselves more efficient, so says Gururaj Potnis, director, Manthan Legal; an offshore LPO (from an Above The Law Blog article: Outsourcing: What Indian Firms Have Planned for the Future of Biglaw).

LPO, or Legal Process Outsourcing, offers similar advantages to other forms of outsourcing. By allowing a company, in this case a law firm, to focus on their core-skills, they can move routine and labor intensive activities offshore for cost savings. Or better said, for increased efficiency and higher margins.

Potnis continues by stating they do not handle legal opinion, and often handle the work of more junior level lawyers - with subsequent handling by the Legal firms senior partner:

Consider a single plaintiff case, like a title VII case. The process is pretty well defined. You review documents, analyze depositions, produce a statement of facts, a memorandum of law ... 80% of that work is junior associate level work. Then, once you have a a first draft, that's when you bring in a senior partner for their expertise.

And LPO is not just for large firms, as 80% of Mathan' clients are less than 100 employees. For smaller firms, LPO may enhance their ability to compete for larger projects usually handed to their larger brethren.

It's all about increasing your competitiveness and saving money - by being efficient and nimble.

#Offshore #Outsourcing Success: Starts with Understanding the Need

We have all seen this humorous depiction of client/developer communications. Perhaps not very funny when you consider this to be true - especially when communicating with offshore developers. 

This happens often, enough so to give offshore a bad name. And yet, whose fault is it when what is delivered is not what was requested? Perhaps without stating blame, we suggest that that offshore outsourcing partner always make it part of their process to ensure complete understanding of the clients request. In other words, the developer should stand up and take charge - using their tried-and-tested methodology (we hope they have one). The client may be a business person without project management or developer skills - another reason for the development partner to take charge.

What happens however in most cases can best be summarized by a recent entry in the Goyello Blog - (Successful Outsourcing Needs Clients Attention):

"They (Indian Development Forms) all agreed that the specifications they receive for most of the projects (from Western companies) are not clear enough. What is more, they confirmed that in many instances their developers start working on these projects without properly understanding the request. ... makes such a project doomed to failure."

Advice for the client; if your offshore vendor is not asking you in-depth questions, or is simply agreeing with everything you request...  find another vendor. In reality, you want and need a true outsourcing "partner" - that has your success at their core!

Contact me today to learn how we can help you connect with a true development partner.

Offshore: safest / dangerous outsourcing locations

InformationWeeks Bob Evans listed ten most dangerous locations for outsourcing - and five of the safest. Some of these locations are intuitive given geo-politics,  yet we find most are still viable for your offshore outsourcing requirements.

For businesses looking to offshore a new facility, where your own personnel are going to have to be on-site, then we would heed some of these concerns. For most business, you will never have to visit the service center - and thus our suggestion that this list not weigh heavy in decision making.

Outsourcing IT Development: Keys to Success

In a past life, we represented an offshore IT Product Development company - and our differentiation was in our processes and methodology. We lost deals due to cost - because for many, cost IS the differentiator. We say this is wrong;  as they say, you get what you pay for. We recall attending a trade show where a competing vendor proudly displayed their cost ($12/hour) right on their booth banner.Would you trust them with your investment capital?

Copying is said to be a form of flattery, ok maybe it's plagiarism. Therefore, please take a look at the Six Ninja's blog article entitled: "Outsourcing software development, managing the risk" for an excellent list of suggestions when considering an outsourcing partner. A few of their points:

"If the price seems ridiculously cheap then somewhere in the chain, compromises will have been made, either in the quality, the testing or the support."

Ensure that your contract provides for schedule payments, and that you have tested and verifying your application to that point before payments are made. In addition, make sure your contract covers each point in this chain - the more detail in writing the better. Lastly, sometimes it is better to pay a premium price for a credible vendor than to save money with an unknown offshore company.

Points 5-7 are all very similar regarding release management, version control, and bug tracking.

It is critical that the offshore partner has the right logistical tools and procedures to manage the development cycle in coordination with your team. This means formal and scheduled code releases (often aligned to a payment schedule), online bug tracking and other non-email means of communication (of specs, changes, material...). A credible partner has the communications and process methodology ready to go - and well documented.

"Find out whether your outsource provider provides local project management, this is especially important if the team is located offshore.  If it is not provided as standard, ensure you have the necessary skills in-house."

The very best offshore partners can offer a local presence that can be available within the same or near timezone. We coined the phrase "Best Shoring", which provides the client with optional local services. However, even without local representation, a partner that has strong communication skills and technologies can help alleviate this offshore concern. And do note their suggestion on having the right skills in-house or the willingness to pay for a maintenance contract (their 4th point).

Cross Sea Strategy Advisors represents offshore company's that have a highly motivated and disciplined team, strong methodology and process and excellent skills - at a fair and reasonable price. For Cross Sea, presenting a partner as highly credible makes the best business sense for all parties involved.

Effective Trade Show Tips: Success in the Booth - Part I (#tradeshows)

Over the last two years we have managed a booth at dozens of industry trade shows - big and small. This gave us an opportunity to experience first hand what makes for a successful booth - and what can cause failure.

Trade shows, we have found, are not the best sources of immediate return on your investment (ROI). Rarely would we walk away from a show with a client commitment or contract in hand. Yet, over time and with good follow-up - we did develop client relationships. Your trade show booth is your company storefront, representing your brand. Some tips to help your trade show presence be a success (Part I of 2 series):

Effective Trade Show Display:

Present your company message; your product or service in a quick visual sound bite. Create your banner or display to be simply yet eye catching. Placing all of your company services and facts on the display will appear noisy and cluttered - think simple. And leverage your web site design to create a strong connection between all your marketing material (web, booth banner, brochures...).

Another factor to keep in mind: if you are using a table in front of your display, the bottom 1/3rd of your banner or backdrop will be blocked. When designing your banner, factor in the area around and in front, to create the best possible display. With the top being the most visible, and therefore the most important segment of your display.

Brochures, Cards and Demos:

We recommend creating a brochure that reflects your web site, booth and other marketing materials. We also suggest that you create a one page (2 sided) brochure that focuses on each of your core services and a company overview. The visitor, if interested in just one aspect of your business, can be handed the one brochure they need.

And be sure to  have a good stock of your marketing materials. We have often seen booths run out of material - especially their own business cards. Locate a printer in the area and have the card/brochure file available for emergencies.

If your product or service can be demonstrated, have this at the ready. If it is a web site or can be presented on a computer, be sure to have this available in an offline manner. Internet services can be very slow at trade shows - a poorly presented demo can affect your brand. Make sure the demo is loaded and ready, so  your visitor does not have to wait - and make sure it works! Often having a continuous loop demo running on a large screen can be effective - a visual effectiveness to draw interest. Make sure it is not a slow PowerPoint like presentation - fast paces, interesting and excitement win the battle in the booth.

Booth Personnel:

The people working your booth represents your brand, in and out of the booth. We suggest that every member of the team attending the show wear a similar outfit - especially a nice long sleeve professional looking shirt with a logo and brief message. When you are walking around the event or attending a party, the shirt allows others to connect you with the booth and service. And please - make it tasteful.

And be ready for a long day on your feet. Comfortable shoes and Excedrin are a must. Take breaks and try to avoid eating at your booth. Nothing worse than chewing on a sandwich and a visitor stops by for a chat. Breath mints are also a plus!

Just be professional - keep the booth area clean. We further recommend you stand outside the booth and greet people as they walk by. Watch for people looking over your booth and banner - and ask them (proactive) if they have questions. Or engage them by asking what they do - or what they have found interesting at the event. Avoid sitting - and if you do - do not slouch. We have seen so many lazy looking booth people - what does that say about your company. Take breaks... not in your booth.

When a visitor approaches, we recommend finding out more about them - before going into details about our company. In this way, you can refine your response to their specific need and/or industry. Personalize your response when you can.

And be sure to collect their name and contact information - write notes on their card. And be sure it is legible before they leave.

Yes some of these tips are trivial, however your company is on stage. When you attend your next trade show, look around and you will see cases where booths and personnel fail their brand.

More tips in Part II - coming your way soon - especially our view on tchotchkes - hate em!