The presentation was created as a part of the course work for MSc in Information Systems and Management program at Warwick Business School. In this assignment, we outsourced a small project on VWorker to understand outsourcing in detail.

1. A)PROJECT DESCRIPTION
B)REQUEST FOR BID
C) RISK AND MITIGATION STRATEGY
D)BIDS OVERVIEW
CONTENT E) SELECTION CRITERIA B.
CYRIL
F) OUTSOURCING NISHIKANT K.
VWORKER
PROCESS
CHU L.
G) PROJECT DELIVERABLE
H) PROJECT SUMMARY 11
GROUP
GROUP ASSIGNMENT I) REFERENCESKATE S.
VIRIYAPA T.
LAYEBI T.
TENG Z.
Global Outsourcing and Offshoring of Services
Dr. Julia Kotlarsky

2. A)PROJECT DESCRIPTION
B)REQUEST FOR BID
C) RISK AND MITIGATION STRATEGY
D)BIDS OVERVIEW
CONTENT E) SELECTION CRITERIA
F) OUTSOURCING PROCESS
G) PROJECT DELIVERABLE
H) PROJECT SUMMARY
I) REFERENCES

3. Project Selection
Why Group Messaging? Why Android?
 In the UK, 11 million text messages are sent
in an hour.
 The number of SMS increased by 24% in 2010
with 129.1 billion texts.
 Nearly 80% of adults in the UK text everyday.
A)PROJECT DESCRIPTION

4. Group Text Messaging App
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A)PROJECT DESCRIPTION

5. A)PROJECT DESCRIPTION
B)REQUEST FOR BID
C) RISK AND MITIGATION STRATEGY
D)BIDS OVERVIEW
CONTENT E) SELECTION CRITERIA
F) OUTSOURCING PROCESS
G) PROJECT DELIVERABLE
H) PROJECT SUMMARY
I) REFERENCES

6. SRS document for Conversation and
Screenshot.
 Product Features
Start New
Conversation.
View Conversation.
End Conversation
 Operating Environment
Application Icon
 Design and
Implementation
Constraints
 System Features
Data Flow
Functional
Requirements
 External Interface
Requirements
User Interfaces
Communications
Interfaces Start Screen
Conversation Screen
B)REQUEST FOR BID

7. Quotation posted from VWorker
“We are a small and innovative company based in the United Kingdom,
developing mobile applications on Android, iPhone and Windows phones.
Due to heavy workload, we are outsourcing some of the small
applications. We are looking for quality developers/companies, who
believe in long-term relationships. Treat this application as the first
step towards a long lasting relationship. If we are happy with the
deliverable, we would be glad to conduct business with you next time.
The application needs to be developed for Android first and later on we
will develop the same application for iPhone and Windows phones. So,
clearly state on which platform you have expertise. All the requirements
are mentioned in the SRS document attached (with sample screenshots).
The project has a strict deadline. So, before bidding, make sure that
the requirements are crystal clear and only bid if you can deliver the
product by the deadline (source code + installer). At last, thank you
for taking out time and bidding for the project.”
B)REQUEST FOR BID

8. A)PROJECT DESCRIPTION
B)REQUEST FOR BID
C) RISK AND MITIGATION STRATEGY
D)BIDS OVERVIEW
CONTENT E) SELECTION CRITERIA
F) OUTSOURCING PROCESS
G) PROJECT DELIVERABLE
H) PROJECT SUMMARY
I) REFERENCES

9. Risks Risk Mitigation Strategies
Create detailed specification and upload early
1. Challenging expectations to provide sufficient time to complete the
project
Read Julia Kotlarsky’s book ‘The Handbook of
2. Lack of experience with IT
Global Outsourcing and Offshoring of
outsourcing
Services’ Ed 2!!!
3. No Bids or Not Enough Bids Have a back-up project idea
4. Overrun Budgets Negotiate with bidders to get a good price
5. Suppliers overselling their Look at vendors’ rating on vWorker, their CV,
capabilities any past projects and any customer reviews.
Continuously interact with the supplier to
make sure the requirements are met and also to
6. Poor Quality in both
make sure any queries they may have are
Functional and Non-Functional
answered efficiently.
Requirements
Provide a complete Software Requirements
Specification as a guide and reference.
Source: Kern et al. (2002)
C) RISK AND MITIGATION STRATEGY

10. Risks Risk Mitigation Strategies
We chose something that we believe is not
7. Re-Selling of Apps
currently available on the market
VWorker site guarantee and arbitration
8. Late Delivery
facility
Use the selection criteria to choose a
9. Slow Response Time
reliable vendor
10. Virtual Relationship Daily status phonecalls
11. Lack Of Flexibility and Continuous communication and specific
Control requirements
12. Having A Single Supplier Back-up bidder
Source: Kern et al. (2002)
‘Seeking a risk-free project is illogical...It is impossible. All projects have some residual
risk no matter how much you do to avoid it’ (Kendrick, 2009, p.198)
C) RISK AND MITIGATION STRATEGY

11. A)PROJECT DESCRIPTION
B)REQUEST FOR BID
C) RISK AND MITIGATION STRATEGY
D)BIDS OVERVIEW
CONTENT E) SELECTION CRITERIA
F) OUTSOURCING PROCESS
G) PROJECT DELIVERABLE
H) PROJECT SUMMARY
I) REFERENCES

12. United Kingdom: 2 vendors
Bids: £353, £2,824
Pakistan: 1 vendor; Bids: £118
India: 5 vendors
Bids: £101, £118, £153, £500, No Bids
Time from posting until award of bid to provider: 03 days
Time from award to provider until payment authorization: 05 days
Country of provider: India Number of countries that bid: 3 Contract amount: £101
(India, Pakistan, UK)
Highest Bid: £2,824 Lowest Bid: £101 Number of Bids: 8
D)BIDS OVERVIEW

13. A)PROJECT DESCRIPTION
B)REQUEST FOR BID
C) RISK AND MITIGATION STRATEGY
D)BIDS OVERVIEW
CONTENT E) SELECTION CRITERIA
F) OUTSOURCING PROCESS
G) PROJECT DELIVERABLE
H) PROJECT SUMMARY
I) REFERENCES

14. Evaluation Framework
Relationship
Competency
Planning and
Contracting
Organisational Design
Delivery Time
Country
Customer
Governance Development
Cost Timely Language Skills
Technical Responses
Skills Leadership
Delivery Program
Reliability Process
Transformation
Business
Competency Mngt
Mngt Improvement Competency
Rating on
VWorker
Domain
Technology
Expertise
Exploitation
Twelve Suppliers Capabilities
Supplier Selection Criteria
Adapt from: Oshri I., Kotlarsky J., and Willcocks P. (2011)
Source:
E) SELECTION CRITERIA

15. Evaluation Matrix
Scoring Table
OriginalTable
Weighting Table
Relationship
Relationship
Delivery Competency
Delivery Competency Delivery and Relationship Competency
Delivery and Relationship Competency
Competency
Competency Total
Vendor
Vendor
Technical Delivery Rating on on
Technical Delivery Rating VWorker Language
Language Timely Score
Cost
Cost Country Timely
Country Reliability
Reliability
Skills
Skills Time
Time (out of 10)
Vworker SkillsSkills Responses
Responses
A
A -
00 High
1014 No 0
0 10(1)
14 10 0 Low 0 India India - Rajkot 7
- Rajkot High 0
10 Low 35/70
0
B
B £500
0 Low
00 Yes
1014 9(1)
10 Low
0 India - Noida Medium Low
B 0 14 0 India India - Noida 7
- Noida 10 0 0 35/70
C
C £153
5 High
10 No
0 0 6.66 (3) Medium India - Bangalore Medium
10 5.25 Medium
C 3.5 14 75 1.75 5 India - Bangalore 7
India - Bangalore 5 38.5/70
D
D £118
10 High
10 No
0 0 1010(1) Medium India - Bangalore High
10 5.25 Medium49/70
D 7 14 14 1.75 5 India India - Bangalore 7
- Bangalore 5
Pakistan -
Pakistan -
E
E £118
10 Low
00 No
0 0 7.15(26) Low Pakistan - High Low
E 7 75 0 0 Rawalpindi
Rawalpindi 7 10 0 0 21/70
Rawalpindi
F
F £353
5 High
10 No
0 10(1)
10 High
10 UK - London
UK - London High
10 Medium
5
F 3.5
£2,82 14 0 14 3.5 UK - London 7 5.25 47.25
G 5 High
10 Yes
10 -
0 High
10 UK - London Medium
5 High
10
G 3.5
4 14 14 0 3.5 UK - London 3.5 10.5 49/70
H
H 10
£101 10
High 10
Yes 0 5 India - Pune 10 10
H 7 14 14 0- 1.75 Medium India India - Pune
- Pune 7 High 10.5 High 54.25/70
Weighting Criteria:
Cost(10%): Technical Skills (20% ): Delivery Time (20% ): Rating on VWorker (20% ):
£0-£150 = 10 Points High = 10 Points Yes = 10 Points 8-10 = 10 Points
£150-£300 = 5 Points Low = 0 Points No = 0 Points 5-7 = 5 Points
Above £300 = 0 Points 0-4 and N/A = 0 Points
Language Skills (5%): Timely Response = (10%): Reliability (15%):
High = 10 Points High = 10 Points High = 10 Points
Medium = 5 Points Medium = 5 Points Medium = 5 Points
Low = 0 Points Low = 0 Points Low = 0 Points
E) SELECTION CRITERIA

16. A)PROJECT DESCRIPTION
B)REQUEST FOR BID
C) RISK AND MITIGATION STRATEGY
D)BIDS OVERVIEW
CONTENT E) SELECTION CRITERIA
F) OUTSOURCING PROCESS
G) PROJECT DELIVERABLE
H) PROJECT SUMMARY
I) REFERENCES

17. Original Plan VS. Actual Progress
1. INVESTIGATE
2. STRATEGIZE
3. DESIGN:
2. STRATEGIZE:
1.INVESTIGATE: 5. MANAGE
4. SELECT
Original Plan 5. MANAGE:
Original Plan
 Brainstormingrequirements ideastrategies and decide on Plan
Document the
Identify riskssession for in detail
and mitigation generation
 Negotiate with bidders Original
communication strategy and team ideas roles.
Check the market to determine ifmember currently Continuous communication
Actual Progress
 Select team member with technical experience to deal Progress
exist with the
 We didn’t have time to Actual
negotiate and the price was within our budget
 Decide on an idea that could be useful to
vendor.  The vendor was very cooperative and responded quickly to
Actual Progress
everyone any concerns
 Some Progress
Actual of the risks we identified had to be accepted because due
Original Plan
 After scale of the our idea and found out that  Receive could
to the deciding on project we the limited resources we Application 3. DESIGN
not implement the mitigation strategies
another group had a very similar idea and we Actual Progress
therefore had to change our idea which delayed us Received screenshots

 Received application
 Gave Feedback and received updated application if
applicable
 Gave final feedback on vWorker
4. SELECT
Adapted from: The Outsourcing Life Cycle Model: Phases and Building Blocks
Source: Cullen et al (2005)
F) OUTSOURCING PROCESS

18. A)PROJECT DESCRIPTION
B)REQUEST FOR BID
C) RISK AND MITIGATION STRATEGY
D)BIDS OVERVIEW
CONTENT E) SELECTION CRITERIA
F) OUTSOURCING PROCESS
G) PROJECT DELIVERABLE
H) PROJECT SUMMARY
I) REFERENCES

19. G) PROJECT DELIVERABLE

20. G) PROJECT DELIVERABLE

21. A)PROJECT DESCRIPTION
B)REQUEST FOR BID
C) RISK AND MITIGATION STRATEGY
D)BIDS OVERVIEW
CONTENT E) SELECTION CRITERIA
F) OUTSOURCING PROCESS
G) PROJECT DELIVERABLE
H) PROJECT SUMMARY
I) REFERENCES

22. LESSONS LEARNED
ARCHITECT PHASE ENGAGE PHASE
 Investigate the market first.  Difficulties of choosing vendor.
 Some vendors oversell their capabilities and it can be difficult to
 Have a back-up plan. identify who is genuine especially in net sourcing.
 Difficult to find a partner that we can trust.
 Not all of the risks could be mitigated and there must
 There is not a vendor that could provide all required expertise.
be some acceptable risks Therefore, the evaluation framework could help us to select the vendor.
OPERATE PHASE
 Since few suppliers wish to show mistakes, they only focus on success
 Different projects have different stories. The Outsourcing
requirements for

skills and expertise. Therefore, it  NegotiationsCycleimportant to have a time. relationship and
is better toIt are important and take good
Life is Model
understand what skills we need from theSource:continuous communication with the vendor especially when
vendor to
Cullen et al (2005)
accomplish the project. net sourcing.

 Need to be very specific when documenting the Communication skills / Clear relationships are
essential.
requirements to make sure the vendor understands exactly
what is expected
 Virtual communications lead to barriers in building
 Doing the outsourcing project requires clearrelationship.
objectives
and approach to achieving the goals.
 Evaluate the project after completion to assess the
success of the project and to learn from mistakes.
H) PROJECT SUMMARY

23. GENERAL LEARNING
 The finished product may not always be exactly how you
wanted.
 A lot of work in the outsourcing lifecycle happens before
you actually outsource.
 Difficult to reduce the gap between our expectations and
LESSONS
the actual product.
 Facing unexpected events.
 You must learn how your partner works.
The expectations are sometimes too high.
 Agile approach seems more effective for smaller projects.
LEARNED
 Sometimes suppliers can suggest solutions and generate
ideas that we have not though about.
TEAM LEARINING
 The importance of teamwork.
 Working in the different groups helps us learn to adapt
ourselves to the new working environment.
 The diversity of the group contributed to innovative idea
generation and problem solving.
H) PROJECT SUMMARY

24. A)PROJECT DESCRIPTION
B)REQUEST FOR BID
C) RISK AND MITIGATION STRATEGY
D)BIDS OVERVIEW
CONTENT E) SELECTION CRITERIA
F) OUTSOURCING PROCESS
G) PROJECT DELIVERABLE
H) PROJECT SUMMARY
I) REFERENCES

25. Arvind Panagariya (2008) India : The emerging giant Oxford University Press
(Pages 266-267)
Brian Rothery and Ian Robertson (1995) The truth about outsourcing
Gower Publishing Limited (Pages 17, 57-58, 196-197, 209)
Charles L. Gays & James Essinger (2000). Inside Outsourcing, the insider’s
guide to managing strategic sourcing
Nicholas Brealey Publishing (Pages 107,118, 120, 121).
Cullen, S., Seddon, P., and Willcocks, L. P. (2005) ‘Managing outsourcing: the
life cycle imperative’ MIS Quarterly Executive, 4(1), pp. 229-256
Kendrick T., (2009), Identifying And Managing Project Risk: Essential Tools For
Failure-proofing Your Project, 2nd ed., United States of America: AMACOM
Kelegama S., (2007), South Asia in the WTO, 1st ed., New Delhi:Sage
Publications.
Kern, T., Willcocks, L.P., Lacity, M.C., 2002. Application Service Provision:
Risk Assessment and Mitigation. MIS Quarterly Executive, 1(2), p.113-126.
I) REFERENCES

26. Koulopoulos, T.M., Roloff, T., (2006). Smartsourcing: Driving Innovation and
growth Through Outsourcing, 1st ed., Avon: Platinum Press.
Lacity, M.C., Willcocks, L.P., (2001). Global Information Technology
Outsourcing: In Search of Business Advantage. New York : John Wiley & Sons LT.
Oshri I., Kotlarsky J., and Willcocks P. (2011), The Handbook of Global
Outsourcing and Offshoring, 2nd ed., Hampshire: Palgrave Macmillan.
Shankar Acharya & Rakesh Mohan (2010) India’s Economy, Performance and
Challenges, Oxford University Press.
Sparrow, E. A., 2005. A guide to global outsourcing, offshore outsourcing and
other global delivery models, 1st ed.,The British Computer Society.
Uma, Kapila (2008,2009), Indian Economy Performances and Policies, 3rd Ed.,
Academic Foundation.
I) REFERENCES