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Custom J2EE enterprise software development, outsourcing offshore Custom J2EE enterprise software development, outsourcing offshore
 

Outsourcing FAQ

How do I ensure that I am dealing with a right service provider/outsourcing partner?
How can I outsource to an off-shore technology company without even meeting them?
What can I outsource? Why should I? Who should consider outsourcing?
Trial offer
What are the implications involved in outsourcing? How do I manage outsourcing relationships?
Is there a fixed software development model? One that is most successful?
Why would I want to outsource to Supremistic?
What services does Supremistic offer? What Kind of projects have you worked on?
What methods do you follow in design and development?
What are your terms of payment?
Since we are dealing with off-shore facilities, will changes in the value of the U.S. dollar affect the terms of payment?

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Q: How do I ensure that I am dealing with a right service provider/outsourcing partner?

A: Below are a few tips on how to evaluate your development partner/service provider. A few things that you need to watch out for are requirements document, a development methodology, clear and excellent communication channels and the ability to understand and think ahead of a business model.

Examine the development partner/service provider for good documentation practices. Good Documentation is very important for effectively managing and implementing projects. A Requirements document is mandatory.

Examine your service provider's requirements document and verify that it truly reflects your needs.

Evaluate the development methodology for good processes. Ask your service provider/developer to submit their methodology and project plan. You can be assured that if your partner has well-developed processes, you will have a quality output.

In outsource models, communication is a very crucial aspect. Please ensure that your development partner has clear and excellent communication channels.

Ensure that the scope of the project is well defined. Often, there are conflicts resulting out of poor understanding of the scope by either party.

Evaluate your development partner to see if they understand your business model. A service provider who sees the bigger picture of your business is always the better choice. His value additions can go beyond your specifications.

The above list was compiled from our experience. Good documentation and clear communication are a must for the success of the project. Read more about the services we offer.

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Q: How can I outsource to an off-shore technology company without even meeting them?

A: European and Indian Internet IT service companies (software and web developers) are considered a viable outsourcing option today. They offer a strategic initiative to cut costs and access to intellectual capital not available in-house. But is there a real software company behind the web page? Does it comprise a team of people who follow established processes and possess a solid infrastructure?

Here are important items to focus on:

  1. The vision and mission of the company in evaluation
  2. Clients list
  3. Infrastructure

Clients seeking assistance from potential Virtual IT services providers should adopt a systematic approach to evaluating information on the Company. A few pointers include:

  1. Examine the accounts that the company has handled. An Internet IT services firm that has worked with companies in similar industries with similar architecture will have firsthand knowledge of the issues with which a company like yours is dealing. If they have expertise in more advanced technology projects or have worked with startups, this information will be valuable indeed.
     
  2. Beware of the companies claiming "we will do all". Scrutinize if the company has its own expertise and business strategy. It's important to ascertain if the company is willing to collaborate as a team with the Client Company to develop its strategy and facilitate knowledge transfer. Any company should have a distinct and easily recognizable strategy and it should be reinforced throughout the site.
     
  3. Analyze the core technical competencies of the services firm. All companies will claim to support the development, integration, implementation and maintenance of your project, but this is rarely the case. A simple rule of thumb being no single company can have a presence in all possible areas. If any company claims so, it clearly shows a lack of focus. Ask for references. Finding a firm's strengths and weaknesses upfront will avoid costly mismatches later in the project lifecycle.
     
  4. Review the resources of your vendor if it is not possible to physically visit the vendor's site and check the resources. Checking the hardware, software, network and communications will give an idea about the vendor's infrastructure. The vendor's experience and testimonials should be checked before proceeding further. Of course, there's nothing like actually visiting the place and checking out the infrastructure and their offerings.

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Q: What can I outsource? Why should I? Who should outsource?

A: Every business benefits hugely through outsourcing because technology is changing so fast, it has to be leveraged and used to the maximum to deliver competitive advantage to a company.

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Q: What are the implications involved in outsourcing? How do I manage outsourcing relationships?

A: Surveys and studies have shown that more than 90% of Fortune 500 companies outsource some part of their operations. In the face of such clear indicators, why would some organizations hesitate to outsource? The answer could lie in the bad experiences with previous outsourcing attempts. There are many issues that need to be addressed before choosing an outsourcing partner. Moreover, once the developer or service provider is selected, it is not enough to just sit on one's heels and assume that the outsourced projects would just work fine. Understanding outsourcing relationships is primary to the success of a project.

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Q: Is there a fixed software development model? One that can be considered most successful?

A: As in any other engineering disciplines, software engineering too offers a few structured models for software development. This document will provide you with a generic overview about different software development methodologies adopted by contemporary software firms. Read about software development models here.

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Q: Why would I want to outsource to Supremistic?

A: The advantages of outsourcing your software project implementation to Supremistic are outlined here.

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Q: What services does Supremistic offer? What kind of projects have you worked on?

A: Please visit our services page, as well as our customers list.

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Q: What methods do you follow in design and development?

A: On early stages of the project, usually during the requirements gathering process, we determine an approximate team size required to deliver project based on business requirements and available funding - the two major factors in determining which methodology we'll use to implement the development process. We believe that every project is unique and may require a different methodology then others. However, once the methodology is chosen, we strictly adhere to it.

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Q: What are your terms of payment?

A: Supremistic offers customers several ways to pay for our services: times-and-materials contract and fixed bid. In both cases we will send you a bi-weekly or monthly invoice, unless we had a prior agreement to pre-pay part or all of the services. U.S. customers pay in USD. If you have additional questions, please do not hesitate to contact us. First consultation is free.

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Q: Since we are dealing with off-shore facilities, will changes in the value of the U.S. dollar affect the terms of payment?

A: In 2004, U.S. dollar (USD) fell about 10% compared to Euro (EUR). Due to expansion of European Union and depreciation of USD most businesses and consumers in Eastern Europe turned to EUR as a currency of choice. Most real-estate, banking transactions and even consumer purchases are now happening in EUR even outside of official Euro-zone. Many Eastern-European software companies demand to be paid in EUR now.

However, Supremistic negotiates long-term contracts and rates with employees working on off-shore facilities. Supremistic can also lower development cost by buying local currency upfront before the beginning of the project. By hedging against falling USD, Supremistic passed roughly 5% of additional savings to the customers in 2004.

For fixed-bid projects, the changes in valuation of USD will not affect terms of payment. On time-and-materials contracts, the change in USD valuation is transparent to the customers most of the time because Supremistic can hedge against that. But if pay rate adjustment is absolutely necessary, we will notify the affected customers in writing 30 days prior to rate change.

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full life cycle development software company project outsourcing outsource services projects offshore off-shore offshoring faq pros cons methodology contractor partner consultant
full life cycle development software company project outsourcing outsource services projects offshore off-shore offshoring faq pros cons methodology contractor partner consultant
full life cycle development software company project outsourcing outsource services projects offshore off-shore offshoring faq pros cons methodology contractor partner consultant
full life cycle development software company project outsourcing outsource services projects offshore off-shore offshoring faq pros cons methodology contractor partner consultant