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Are we at the right size to outsource work? |
This is the most common dilemma that makes outsourced relationship a non starter. Remember, there are no rules for the right size to start with an outsourced relationship. What matters most is a deep conviction that you want to build cost economics. You could be a 15 person company and might still build an outsourced team of 3 persons. On the other hand you could be a 1500 person company and could build an outsourced team of 300 persons.
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We have a niche offering. Should we still outsource? |
There is always a scare of parting with your niche. This is a well understood dilemma. The skill lies into your ability to keep the core activities and outsource the development activities. Many ventures have been through the problems of timeless delay in product releases. This is due to the fact that organizations have been doing the balancing act of focusing on core activities as well as the development activities. Eventually, towards the fag end, all the energy gets diverted to development activities and core activities do not get the deserving attention.
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Should we look forward to domain expertise? |
This dilemma of yours is most relevant. This is the most important expertise necessary in a company you are outsourcing to. Apart from the technology expertise, you must look into the investments that the organization is making for domain expertise development. This focus helps in ramping up the team capacity at short notices.
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Can this organization align with forward looking technologies? |
There are many rapid changes happening in the Business Intelligence space. Technology is getting upgraded on data warehouse, web deployment and well as the application side. There is also a lot of thinking going on towards making BI application real time. Some of them call it as BI 2.0 while some advocate making light weight components thus making BI more pervasive.
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Is this organization financially stable? |
While it is important to be technically qualified, it is equally important to be financially stable. It is this stability that can leverage the short ramp up capability. Moreover organizations need to make specific investments to keep the employees motivated and up to date with latest technology advancements. This definitely costs a lot of dollars. In absence of this capability you may find yourselves tied up with a partner struggling to survive.
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Does this Organization have proven product development expertise? |
You need to ensure that you work with a company that can provide you the product development expertise and not merely software development expertise. A product development expertise helps in keeping an eye on the global functionality check, interoperability up to the final build and release. A lot of problems are avoided if the companies you are talking have gone through the various phases of product development life cycle.
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Should we start with a pilot assignment? |
If you have even one percent doubt it is most advisable to start with a pilot assignment. This will increase your confidence. However, it is most advised to lay down the rules of pilot assignment. Please ensure that the right context is set up for the pilot assignment. The key deliverables should be focused at your parameters of evaluation.
Alternatively, you should check on the experience of the organization by way of a pre defined check list that maps with your needs. Please ensure that there are some forward looking expectations with respect to your next 2 quarters product roadmap.
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Should we expect the understanding of technology as well as
application side of BI? |
Yes, you should do that. While the expertise can be for one of these areas, the understanding for the other one is an added advantage. It is also important know to whether the company has some expertise on analytics.
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Should we expect the ability to understand and develop analytical engines? |
Finally, all BI applications make use of certain analytical models for forecasting and case specific reporting. Whether it is customer analytics or whether it is demand analytics, the organization ability to be able to work on defined algorithms in order to integrate them with the application is of paramount importance. You should look for this ability in your prospective partner.
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Should we expect the partner to align with our business focus? |
Yes, it is very important to have this alignment. This alignment helps in making some forward looking investments. Your partner will know where you are heading to and this knowledge gives them the confidence to invest more. If the partner is not able to understand your business focus, it is for sure that there will be a definite dropout very shortly because of the opportunistic position. You must avoid partners with this opportunistic view.
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Management
