Entry

Frequently asked questions on outsourcing to India

Frequently asked questions on Indian outsourcing and freelancing

How to legally outsource to Indian programmers

Aug 21st, 2008 09:21
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faq - Frequently Asked Questions:- 
(1)	Is Outsourcing web development and application programming to 
India really Cheaper and Cost Effective ?
Outsourcing is cost effective. Many software giants like microsoft, 
sun 
have set up development stations in India for cost effectiveness. 
India  has a large pool of talented engineers. Companies outsourcing 
back-office work to India save as much as 60 per cent of their cost 
every year. Further more Outsourcing to India is more cost effective 
than outsourcing to other countries such as new zealand or australia 
for example. At the most you will find paying just about US$10 to 
US$15  per hour for hiring a company in India to do your software 
development work.
Not Now! But you can get quality work within time limit. for more you
can visit http://www.nighthawks.co.in
http://www.internetnews.com/dev-news/article.php/67211 - Sun To Set Up 
Java Development Center In India 
http://www.bizjournals.com/seattle/stories/1998/03/23/daily4.html - 
Microsoft plans development center in India
http://www.rediff.com/money/2003/mar/11it.htm - Companies outsourcing 
back-office work to India save as much as 60 per cent of their cost 
every year
http://www.blueappleonline.com/edgevantage@india/ - Advantages of
outsourcing web development work to India
 (2)How do I find Companies in India?
a) look through freelance marketplaces like elance.com or 
scriptlance.com 
b) searching using google.com
http://www.google.com/search?q=custom+freelance
- The google search for "custom freelance" programming India
Search online Indian trade directories, Guru.com.etc. YOu can find lot 
of qualified Indian companies on Elance and Guru.com.
3)	Will the software and scripts they create be legitimate and 
can 
it be sold or marketed in USA or UK ?
This is a major concern for international buyers who wish to outsource 
programming to India. But rest assured that India is as serious in 
using legitimate software as any other country. Indian copyright law 
is 
one of the toughest in the world.
http://stlc.iii.org.tw/asocio/india/india-1.htm - Indian copyright law 
is one of the toughest in the world.
4)	Can I find the identity and location of the company ?
for finding details about registered companies you need to visit the 
particular registar's official government website.
For example if you need to find details about a company located in the 
state of "Tamil Nadu", then you will need to go to the 
http://www.rocchennai.tn.nic.in/ - Office of the Registrar of 
Companies 
website and locate the company in this  
http://www.rocchennai.tn.nic.in/companies_list.htm - list of companies 
page and query either by name or registration number. 
Also once you get to know the phone number of a company you could 
easily find and cross reference their address by going to the website 
of BSNL the major telephone network provider in India. choose the 
appropriate unit from the menu "BSNL units in India" in the 
http://www.bsnl.co.in/ Bharat Sanchar Nigam Ltd website. say example 
you choose "chennai" city and go to http://www.bsnl.co.in/ chennai 
bsnl 
website. And from the page 
http://www.chennai.bsnl.co.in/newdq/index.html Directory Enquiry, you 
could do an address to phone number search or an phone number to 
address search.
5)	How to establish the credibility and previous track record of 
a 
particular Software company in India ?
Get telephone references of previous clients that the company has done 
projects for either in USA or UK. 
Also look out for reviews of that particular company in popular 
freelance marketplaces like elance or scriptlance.
For example,
you can read the 
http://www.elance.com/c/fp/main/viewprofile.pl?ID=102646 - reviews in 
elance  and 
http://scriptlance.com/cgi-bin/freelancers/feedback.cgi?
p=chrisranjana -
 scriptlance reviews of a particular Indian software outsourcing 
company.
6) Is the NDA (non disclosure and non compete agreements) which we ask 
the company in India to sign legally binding ? what are the cyber laws 
in India ?
The copyright and cyber laws in India are more than adequate. Email 
and 
digital signature are recognized as most valid forms of any agreement.
http://www.naavi.org/cl_editorial/edit_15nov00_1.htm - The passage of 
the Information Technology Act 2000 in India with effect from October 
17 has created a legal recognition for Electronic Documents. 
further more you could ask the representative of the company to sign 
the NDA and get it notarized for authenticity of the signature.
7) Will communication be a problem ?
Most of the companies work from 8AM to 8PM local time and 
communication 
modes can vary from email, instant messengers etc. Phone calls can be 
used on intermittent basis too. Since there are excellent english 
speaking programmers in India communication will NOT be a major 
problem .
8) Does the company has basic infrastructure ?
This needs to be tested before hand. Internet reach is very good in 
India. But you need to test whether the company depends on dial up 
internet connection! or  broad band connection for its business. To 
test the speed you could ask the company to use the tool located at 
http://www.dslreports.com/stest - This OPEN PUBLIC speed test page and 
send the test results to you.
9) how to test the technical competency of a company in India ? in 
other words will the company be able to do this project at all ?
ask the programmer representative of the company to take up a 
technical 
proficiency test at http://www.brainbench.com - the brainbench 
certification center and you could judge from the results.
10) regarding payment terms etc?
Once you have satisfied yourself based on the above criteria you could 
start discussing payment and other issues.
Always insist on paying by credit card, ask the web development 
company 
in India to setup a http://www.paysystems.com - paysystems or a 
http://www.2checkout.com - 2checkout account and pay using credit card.
The normal break up of your payments should be :-
a) You pay 50% advance payment.
b) The software development company in India starts scripting in their 
own servers and should keep on showing you demos 
c) once you are completely satisfied (be sure to test the software 
thoroughly) 
d) then pay the remaining 50% and ask 
e) the company to install it in YOUR servers. 
f) also discus before hand what will the company charge to do 
additions  and deviations from original specs.
allow me to add to this !!
Offsite/Offshore Model:
In this model, the vendor company will have it's own office close to 
the customer's site. A team of engineers from this office will 
coordinate between the customer and the offshore team.
The offshore model has by far been the most successful one among the 
various models that have emerged. The simple reason being that unlike 
in the case of the offsite/ offshore model, you have the satisfaction 
of coordinating and discussing requirements and deliverables with an 
dedicated member of the team in the US, while at the same time 
enjoying 
the offshore cost advantage.
 OFFSHORE DEVELOPMENT METHODOLOGY:
The offshore development process usually begins at the customer's 
site. 
A team of analysts led by a Project Manager carry out the initial 
requirements definition and analysis in consultation with the 
customer. 
The design, development, and testing phases are carried out at the 
offshore development center with a larger team. The acceptance 
testing, 
implementation, installation, and user training are done at the 
customer's site. On an average 70% of the total effort is done 
offshore 
and 30% onsite.
An outline of steps involved in the offshore model is:
1. A Project Manager from the development team and a Project 
Coordinator from the customer's end are nominated to oversee the 
entire 
project.
2. To start with, the Project Manager and a team of engineers from the 
vendor firm visit the customer's office to establish rapport with the 
Project Coordinator, discuss, understand and document requirements, 
establish communication protocol and finalize reporting format and 
frequency. It is absolutely necessary that the Project Manager and his 
team gain an in-depth understanding of the requirements and 
communicate 
the customer's vision of the application back to the offshore center.
3. Once the initial requirements have been understood, the customer's 
design approach, development and testing standards and norms for 
acceptance, if any, are studied. A detailed project plan that entails 
the resources for the project, duration of the project, milestones and 
deliverables to be achieved is prepared.
4. While the Project Manager and the majority of his team return with 
the above information and prepares a project prototype, architecture 
and detail design for the customer's approval.
5. Once the customer has signed off on the requirements and prototype, 
the core development team gets going on the work. Constant 
interactions 
between the project manager and the onsite coordinator enable quick 
clarification of any doubts.
6. Upon completion of the project, the vendor team will carry out the 
implementation and installation of the project at the customer's site.
In certain cases, some amount of preliminary design is completed 
onsite 
during the Project Manager's visit. Subsequently, the development and 
testing take place.
In many cases, the various steps mentioned above overlap, compressing 
the total time. The project as envisaged could include onsite 
installation and implementation support followed by offshore 
maintenance. 
The world is discovering the fact that India is a super power when it 
comes to developing IT solutions. Swept by the current of the latest 
trend "IT outsourcing to India", we find many fortune 500 companies 
like Microsoft, Oracle, Citibank, Morgan Stanley, Wal-Mart, AT&T, 
General Electric, Reebok, General Motors, Sony, Boeing, Coca-cola, 
Pepsi, Swissair, United Airlines, Philips, IBM, Lucas and British 
Aerospace beneficiaries.
outsourcing-
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