How to Negotiate with an Offshore Outsourcing Company?

Offshore Outsourcing Company

Offshore Outsourcing has become a growing solution for business and technology consulting, web portal development, application services, custom software development, and validation services for larger corporations or a smaller company.

Larger corporations often use an end-to-end solution approach, where all of their IT needs- ranging from ERP business solutions across all business locations, maintenance and support applications or IT infrastructure.

A smaller company may outsource IT services for their corporate website design, web content writing, Internet Marketing, Blog content, web development, e-commerce application, and SEO friendly web for inbound marketing.

Knowing the exact services you ‘really’ need is the “starting point” of negotiation an outsourcing deal. Very first step to start negotiation process for Offshore Outsourcing project is the preparation of a perfect RFP (Request for proposals).

For drafting the best RFP, involve the associated professionals. RFP should contain all the necessary and reference documents required to finalize a deal. Here is few Facts about Offshore Outsourcing Company That will likely surprise you:

1. Security

The outsourced IT firm will have access to all of your project details, so security is of utmost importance. Your assets that is intellectual property and information need to be secure. Sign the NDA with Offshore Outsourcing Company.

2. Team

Am I really going to be provided with qualified professionals? Ensure that you really get the quality hours for which you’re paying for.

3. Project Manager

Will the software development team have someone full time who is experienced in managing Outsourcing projects?

4. Cost Savings

Costs fluctuates based on the Team profile, services provided, geographical location, overheads and profit margin of the company. Compare team profiles, services offered by individual vendor and asked for discounted services.

5. Location

Do you really need on-site support? If not, it does not matter where the Outsource IT firm is located.

6. Outsourcing Contract

The outsourcing contract is the logical last task of the negotiation process, and as such is of fundamental importance. A well-crafted contract will guarantee that both parties are in agreement. In order to take full advantage of outsourcing and minimize risks all involved parties should carefully consider a few guidelines on, Scope of Work, Pricing, Service Level Agreement, Intellectual property, Outsource Governance, Contract Termination, Transition, and Dispute Resolution.

What do you think?  What are the most important negotiation with an Offshore Outsourcing Company you have learned?

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