Quality and client satisfaction take a back seat, as the focus shifts towards ensuring profitability on the project at hand. Many small and medium sized companies who outsource to popular offshore programming destinations like India and China face this acute problem
(PRWEB) June 21, 2006
Indus Net Technologies, an offshore web design and development outsourcing company reported that its 'dedicated hiring' program is proving very effective for small and medium sized businesses that are exploring outsourcing as a strategy to compete effectively in existing marketplace.
"A traditional fixed-cost, fixed-time based outsourcing model forces a business to think short-term!" said Abhishek Rungta, Founder/CEO of Indus Net Technologies. "Quality and client satisfaction take a back seat, as the focus shifts towards ensuring profitability on the project at hand. Many small and medium sized companies who outsource to popular offshore programming destinations like India and China face this acute problem" he added.
The classic model of project-based engagements requires the principal to have a rough estimate of the development period and a well-defined project specification so that they can agree on the cost of development with the vendor.
This model has a few important limitations:
- It is difficult to estimate time and effort as the project scope is constantly changing in this fast paced business environment.
- The entire process of finding vendors, drafting detailed specifications, estimating the project cost, finalizing and managing a contract can be time consuming. This becomes critical in time-sensitive projects.
- The focus shifts from ensuring quality and client satisfaction to managing the project scope and profitability.
- The principal does not control manpower and module allocation and hence it is difficult to ensure that post-kick-off priorities are accepted by the vendor.
A dedicated hiring model offers several advantages:
- Projects' scope can be incrementally defined as the sponsor gains experience and gets a clear vision of the system with time.
- Option to offload labor-intensive jobs like coding and design while sponsor can focus on delivering more value to clients in terms of consultancy and system design.
- Flexibility of redeploying the team on another higher priority project or module of the same project based on changing market situation.
- Fixed monthly cost with guarantee of minimum work hours. It is like having own workforce without the overheads and at a much lower cost.
- Provision to scale up or down at a very short notice without having to worry about labor laws.
Small and medium sized companies with several projects benefit the most with dedicated hiring options because they can recruit a mix of talent and managers who can work on the different projects on rotation basis as and when required. The client also gets regular progress report rather than get a one-time delivery at the end of development cycle when it might be too late to change features or components.
Similar options already exist for large corporations. However small and medium sized businesses never got such a flexible option packaged as an easy-to-use system. This service is currently being used by companies ranging from startups to insurance and publishing giants across USA, Europe and Australia.
"This 'dedicated hiring model' is set to revolutionize the way outsourcing works for small and medium sized businesses. Asking for fixed price quotes may soon become a thing of the past. Our clients are already saving an additional 27% on their offshore outsourcing budgets" signed off Abhishek.
About Indus Net Technologies:
Indus Net Technologies is an ISO 9001 certified offshore Internet Service Company with multiple development centers in India, operating since 1997. It provides "virtual team of Internet professionals" with skills in PHP, .NET, Java, creative design, content writing, directory submission etc, on hire to work for the clients' projects. Visit their web site at http://www.talash.net/dedicated-hiring/
Indus Net Technologies