Growing competition is inculcating “sense of quality” and “value for money” in the consumers worldwide. This has a direct impact on the margins of product and service providers, since better quality means increased cost, and value for money means lesser shelf price. To maintain sustainable margins, the best option seems to be outsourcing non-core activities (and even core activities to some extent) to offshore locations (especially developing nations) so the costs can be brought down. Moreover, onsite-offshore engagements are also not easy to manage and can involve a lot of hassles including:
These hassles keep growing with time in such engagements. With countries like India, China and Ukraine leading in the list, the competition is growing too and it’s difficult for the outsourcers to decide which supplier to choose. Almost all of them offer lucrative cost savings and flexible business models when they sell but almost all of them fail to meet the expectations at various levels post sales.
Important aspect to understand in these engagements is that problems do happen and they will keep happening, but the idea is to take right measures to ensure that these problems do not repeat. Most of the clients or suppliers run out of a relationship after problems and these problems keep coming in all new relationships.
Verve Systems has invested its expertise and efforts in identifying the pain areas for such engagements and has evolved with mutually beneficial “Value Added Transparency” models. These engagement models not only ensure that transparency is maintained throughout the engagement but also that this transparency is utilized for overall value addition to the engagement by learning lessons and incorporating these lessons at every level of transparency.
Verve Systems has realized that the key to success is not hiding problems from the clients but looking at every problem or a deemed problem openly, discussing it with the client and treating it as an opportunity to improve the efficiency of engagement with this learning.