Tuesday, April 23, 2013

Why Offshore Outsource Projects Fail


Why offshore outsource projects fail and why mistakes may not become learning achievements for software development companies. 

Projects succeed on the mutual bond client-company shares. But due to system irregularities and process constraints, companies – irrespective of shapes and sizes – often end up concluding a deal on the half way; leaving clients searching for better and more systemic choice.

What does it mean?

If a company doesn’t change its outlook to development and ignores the crucialities of past project failure, it steadily fronts towards a deadlock or mid-way trap. Deadlock refers to the situation a company faces if it doesn’t have necessary expertise to carry out its ongoing operation and mid way trap refers to concluding a project at a crucial stage when a company has already invested resources it can’t afford. The only way a company can save itself is to learn from the mistake. We discuss why it usually occurs.  

Bargain: A service provider’s ability to offer quality wok is what set the rate. Low quality work comes at a surprisingly low cost hence such work has high probabilities of failures.

Lack of systematical communication: A software development project for example has to be initiated only when clear set of expected and projected results are defined. Communication plays a crucially decisive role in ensuring client – company knows what is going on, what should not go on and how things should meet an end. A bad communication if not cleared will only grow for bad.   

Inadequate planning: Planning something before and delivering something else at the end is a major project breaker. This however is likely for companies that do not have adequate knowledge on deliverable development. Sometimes clients’ misguided knowledge about the result is the cause of planning fall

Other factors:
Security and concern for safety
Lack of support
Infrastructure
Flow and adequacy
Inadequate management
Issues related to in-house clash

Other factors are also there; these vary from one to other. What is important to note is that it is wrong to held a company always responsible. Quite often a client’s undefined objectives and high yield expectation also lead to project failure

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