Tangible Issues

Tangible issues are issues like pricing, quality, schedule and other monetary, issues that can be measured in terms of quality and quantity. These issues have direct affect on the entire project. In this section we highlight the tangible issues that will impact the outsourcing decision.

Pricing and other business benefits: The project price is at the core of any contract, a carefully thought through contract will take the financial terms and deal with some of the uncertainties. This can be as relevant to "fixed price" contracts as for those that anticipate price fluctuation. Liquidated damages, the impact of delays, effect of inflation, manpower and material shortages, insolvency and other issues must be addressed. The use of a sensible change control procedure can help anticipate and avert major financial fluctuations and problems.

Performance and Quality: IT projects are process driven and require monitoring and measuring closely, to create a fruitful and long-standing relationship between client and vendor. CMM, ISO and Six Sigma are not just an option for a contract. To achieve effective co-ordination and understanding between offshore team and onsite team, quality training must be made mandatory. Problems may occur if a contract is inflexible when there are changes due to unforeseeable reasons. It is also important that client and IT service provider need to anticipate these problems in advance to avoid mismatch between the initial goals of the project and expected results of the project.

Hidden cost:

These are the issues may prove to be very significant later but they are part of hidden cost of outsourcing. The issues like transfer of assets i.e. hardware and software, need to be done in appropriate manner. Another hidden cost is due to problems arising from poor schedules - These include (a) lack of clarity as to what is or is not within a service and/or (b) the customer and the supplier failing to understand their respective responsibilities. Without clarity there is, as in any contract, an element of uncertainty that, apart from any legal problems, can cause operational problems.

We also Recommend:

custom made gaming computers - Offers custom made gaming computers.