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-
weblog.com/50226711/frequently_asked_questions_on_offshore_outsourcing_
part_2.php
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