Dedicated Hiring Model Offers Superior Benefit to Traditional Project Based Offshore Outsourcing
Abhishek Rungta, Wednesday, June 21st, 2006
Indus Net Technologies (www.talash.net) today announced that it is getting tremendous response to its dedicated hiring model, which offers vastly superior benefits over the traditional project based outsourcing.
(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.
- 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.
Filed under: Offshore outsourcing, News @ Indus
