Author : Nick Krym

Using Contracts to Mitigate Offshore Risks

MSA – a “horizontal” component of an offshore contract can become a powerful tool in managing an offshore engagement and mitigating its risks. My approach to turning MSA in such tool includes several main steps: 1. Identify specific risks associated with the engagement. See my earlier post Top outsourcing risks as an example. 2. Rank the risks and select top ones; limit the selection to 5-10 items. The reason I recommend limiting the list is the cost / length of negotiation process. 3. Find out the reasons the risk mitigation is not in place / insufficient. You need to understand why this presents the problem […]

Offshore Contracts Basics

In general the language you put in contracts will not change the nature of the business, will not counter the Fundamental Laws of Outsourcing, and won’t prevent things going south. Yet it is impossible to overstate the importance of a well-written contract. The goal is to develop the contract in a way that it encourages / enforces desired behaviors and provides a framework for dealing with issues, complications, and disputes. That applies to both parties – the contract has to work for you and your vendor, in that light, considering the nature of the engagement, nothing is as important when developing a contract as keeping […]

Pragmatic Outsourcing vs. Gartner

You may have seen latest Gartner view on offshore destinations via Gartner rates offshore outsourcing hot spots or variety of other sources. I find Gartner view quite interesting, informative yet sometimes not very relevant to needs of software product companies.  In this particular analysis the information is very good and applicable to a large degree with exception of a few important areas where data is misleading when applied to IT and Software Outsourcing specifically for small to mid-sized companies. An obvious disclaimer here – my opinion is based on a fairly limited sampling – my own observations, recent experience and analysis plus some supporting data […]

Downfall Impact: Do you keep your current provider?

Another good question posed by Michael Grebennikov in LinkedIn, when the market is down, the budgets tight and future is more uncertain than usual, what do you do with your outsourced projects? Of course this question can not be dealt with in insulation. Major market events require immediate and aggressive action, all aspects of the technology organization need to be dealt with quickly and in the most judicious manner. The organizations that do not react / change fast enough pay huge penalty. When Cash is getting low and/or P&L is looking grim organization must rationalize its R&D and Project portfolio. On my book that means […]

Outsourcing Impact on Technology Choice

I find LinkedIn to be a good idea generator for blog topics, for example a question from Vinay Joshi “.Net OR Java what technology projects you outsource — Does technology matter for making decision to whether outsource or not? …” deserves substantial discussion, beyond my brief answer on the site; especially considering that the rest of answers are more about religious war of .Net vs. Java rather than about the question itself. Of course the answer depends on the context, if you are a technology company that already has the technology selected or a vendor that has a large team with specific expertise in place […]