The Manual HandIn - Outsourcing - PDTI 2014
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The Manual HandIn - Outsourcing - PDTI 2014

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During the education the teams will create a manual / toolbox with information on many relevant topics. ...

During the education the teams will create a manual / toolbox with information on many relevant topics.
The idea is to produce a manual that later can help the teams with the different topics. The manual must give an overview with the most important and necessary information about the topic.

The subject must be described in a 2-5 pages document (pdf) with the following content:
• Basic information about the topic
• The main elements
• How to deal with the topic
• What knowledge is needed
• What kind of persons/companies to contact
• Names and contact information for relevant companies
• What information is needed to communicate with the external partner
• Literature and links to important/relevant information on the subject
• Etc.

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The Manual HandIn - Outsourcing - PDTI 2014 The Manual HandIn - Outsourcing - PDTI 2014 Document Transcript

  • Product development and Technology integration Outsourcing The manual Victor-Alexandru Truica, Martin Jorgensen, Martynas Ubartas 2/27/2014
  • Contents General information ..................................................................................................................................... 1 Reasons to use outsourcing .......................................................................................................................... 2 Business opportunities.................................................................................................................................. 3 Additional information.................................................................................................................................. 4 General and legal information regarding outsourcing ............................................................................. 4 Top websites for IT outsourcing (especially web development and web design) .................................... 4 References .................................................................................................................................................... 5
  • Outsourcing manual PDTI 2014 General information What is Outsourcing? Outsourcing refers to contracting work out to an external organization[1].(e.g. in design outsourcing logos, in web dev - outsourcing a wordpress theme). This goes hand to hand with offshoring or offshore outsourcing[2]. Offshoring means getting the work done in a different country, due to lower work costs. Companys frequently contract work out to external organizations (or individuals) residing in other countries.[3] In some cases a company doesn't have the resources necesary for a project (part of a project) so they simply hand out the task externally. The most commonly outsourced streams of business include:         IT outsourcing (which started the outsourcing trend[4]) Legal outsourcing Content Development Web Design and Maintenance Recruitment Logistics Manufacturing Technical/Customer Support What to outsource  side tasks/low importance tasks What to NOT outsource[5]    core infrastructure information security management Popularity Outsourcing became very popular in the last, this being facilitated by globalisation and the spreading of the internet (as an infrastructure) and PC users. Total number of U.S. jobs offshore outsourced in 2013 were 2,637,23.[6] Top rated outsourcing companys being India (with a workforce of almost 1,5 milion) and Indonesia (with a workforce of 1milion) Most prefered outsourcing sectors are Manufacturing with about 53% and IT services with 43% 1
  • Outsourcing manual PDTI 2014 Reasons to use outsourcing Advangates[7]      Getting qualified support - there is a huge outsource market, with people specialising as much as posible in certain areas. The company also has the chance to get another qualified opinion on the subject. Reduced recruitment cost - the company doesn't have to spend money and time to find the appropriate employee Temporary recuritment - instead of hiring somebody on a contract basis for several years, the company can outsource a several-hour task. All the paperwork and formalities are cut off. Saves time - ability to focus on key elements instead of additional/side elements - a company can outsource small tasks that usually are more time consuming than expected, in order to focus on the more important elements Allows you leverage growth – similar to time saving. Example: if you just start the company, you can hire some virtual assistants who would help you manage and sort out things. This could make your company grow much faster. Disadvantages      Data exposure - in many cases, when outsourcing a project, the company must also share in-house information. This is a big drawback from a security point-of-view because a 3rd party can gain knowledge upon the way a system has been built (e.g. the backend of a ecommerce website) and can use it to compromise it.[8] Not knowing the contractor - being such a large market of freelancers, there is a big chance to hire somebody not as qualified as you would think. Many un-professional freelancers are known to be late with the hand-ins or to invoke reasons for unavailability (such as country specific holidays) Hidden costs - signing contracts across international borders can come with surprises. There are many country specific laws that are simply unknown to the large audience, thus a profesional legal advisor is recommended to facilitate the legal discussions. Slightly time-consuming– need to write down the plan, spend time training them, getting information to them. But over time it would take less and less time to do that. High cost – you can invest a lot of money into projects and not get the right outcome, etc.: hire bad people. 2
  • Outsourcing manual PDTI 2014 Business opportunities Since outsourcing (and especially it-outsourcing) is so popular, there was just a matter of time until it was exploted in order to create a business. There are companys where all their technical staff is outsourced. Usually in such a business scheme, project ideas and management are being handled by the sole proprietor and all the technical work is being outsourced, usually to individuals from other countries (offshore). One good example is the "location indendent entrepreneurs" movement[9]. Another example of business regarding outsourcing is the outsourcing marketplace - websites that gather companys (along with their job/project offers) and freelancers (the ones who are looking for an hourly job) in the same place. One of them is RentACoder.com created by Ian Ippolito, generating revenues up to 2.4 milion dollars in 2008. Reflection upon techniques Outsourcing and Offshoring is not going to be used as much as before. The skilled workers offshore are realizing their potential and demands higher salaries for their services, which now almost stands higher than average salary of USA or EU workers. So if the company can get the job done for the same price at their country, it is necessary to discuss whether it is worth using these techniques such as offshoring. These techniques also have great exposure to the knowledge that the company is sharing with the offshore subcontractors and contractors. 3
  • Outsourcing manual PDTI 2014 Additional information General and legal information regarding outsourcing     http://outsourcemagazine.co.uk/ http://www.outsourcing-law.com/ http://www.sourcingline.com/book/outsourcing-locations http://www.entrepreneur.com/article/206722-7 Top websites for IT outsourcing (especially web development and web design)           https://www.elance.com/ http://www.freelancer.com/ https://www.odesk.com/ http://fiverr.com/ http://www.peopleperhour.com/ http://www.getacoder.com/ http://99designs.com/ http://www.guru.com/ http://www.ifreelance.com/ http://www.project4hire.com/ 4
  • Outsourcing manual PDTI 2014 References 1. http://www.wisegeek.org/what-is-outsourcing.htm 2. http://www.slideshare.net/bparker1084/know-the-difference-between-outsourcing-andoffshore 3. http://www.diffen.com/difference/Offshoring_vs_Outsourcing 4. http://www.outsourcing-law.com/it-outsourcing/ 5. http://www.stratform.com/functions_not_to_outsource.htm 6. http://www.thecountriesof.com/job-outsourcing-statistics/ 7. http://www.flatworldsolutions.com/articles/advantages-disadvantages-outsourcing.php 8. http://www.dst.dk/en/Statistik/emner/globalisering/outsourcing.aspx 9. http://www.tropicalmba.com/ 10. http://www.statisticbrain.com/outsourcing-statistics-by-country/ 5