Managing the development of new software and deploying systems gets more complicated the more spread out the resources. If your applications are developed in Bangalore; your data centers are in Hong Kong and Los Angeles; and your network operations are based in Rio de Janeiro, you’ve got a management task ahead of you.
Here’s a checklist of what you can do, from picking where to best procure the resource, to managing the collaboration on the rollout:
Suri says his engineers in India earn about $30,000 a year and he could only hire half of them locally. He required engineers with 8 to 12 years of experience in integrating supply chain and enterprise planning software. He hired workers in the United States, Britain and Singapore who wanted to move to India.
Companies that want to cut offshore risks may consider, “near-shore” alternatives such as Canada, where you can cut costs 15% to 25%. Electronic Data Systems uses operations in Brazil to be in the same time zone. Other companies pick South America for offshore outposts to be near existing subsidiaries.
China is cheaper than India and other locales, but Moore says companies shouldn’t consider it as a viable offshore alternative for software development and maintenance support. She cites the lack of English language skills, legal and regulatory environment and lack of intellectual property laws as risks.
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