Companies have a lot to gain through global sourcing, such as the ability to get products to market faster, lower costs, increase productivity and create a better focus on core competencies.  All of these benefits can be lost if the wrong global sourcing provider is chosen.  Failing to choose the right vendor can leave the outsourcing company in a worse condition than before. 

By thoroughly analyzing a global IT provider, organizations can avoid repeating the same mistakes that many others have made in the industry.  It is vital that the vendor chosen is able to deliver solutions that will meet the outsourcing company’s needs.  There are key criteria that must be considered when deciding the appropriate global sourcing provider.  Even though a vendor may be a good fit for one company, doesn’t mean the same vendor will align properly with another.

Vendor Size – Deciding to go with a large vendor versus a smaller one is tricky.  Larger vendors tend to have several outsourcing services in order to provide multiple offerings to clients.   The problem with going with a large IT vendor is that there is a lack of individualized attention.  On the other hand, vendors that are too small may not have the services needed.  The solution is finding the right balance - a global sourcing provider that is big enough to handle the IT work, but small enough to give personalized and prompt attention to the outsourcing company.

Industry Expertise – Vendor expertise is crucial to the success of IT projects.  It is ideal to outsource to a global sourcing provider that has knowledge in various software technologies.  If a vendor has limited expertise, there is no way of knowing if there is a better method for software and process development.  Vendors should also have knowledge in the outsourcing company’s market.

Employee Qualifications – The quality of development is only as good as the developer’s knowledge and experience.  When interviewing vendors, it is important to inquire about the background and experience of the employees.  How many years have they been in this line of work?  What type of degrees have they earned?  Finding out the language skills of the employees is also crucial as language barriers can harm an IT project.

Communication Capabilities – Vendors should have some type of communication infrastructure in place.  There should be a system for knowledge transfer and a well defined method for communicating project requirements.  Also, the vendor will need to have either email, phone or other type of communication capability that would allow the outsourcing company to discuss the project with the vendor. Some global sourcing providers have project managers located in the United States to coordinate projects and schedules.

Security Measures – The protection of intellectual property is essential in the IT industry.   If the vendor is located in another country, the laws of that region should be reviewed to find out the level of intellectual property protection.  Employees of global sourcing providers are often culprits of trade secret theft.  Before signing a contract with a vendor, find out what kind of background checks are done on employees.  Vendors should have firewalls and other types of security protection methods established to protect proprietary information.

This list is just a sample of criteria that should be reviewed.  A&E Consulting can help you choose the right global sourcing provider in order to ensure the success of your IT projects.

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