Pub. Date:
Taylor & Francis
The Insider's Guide to Outsourcing Risks and Rewards / Edition 1

The Insider's Guide to Outsourcing Risks and Rewards / Edition 1

by Johann Rost
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It is essential for a corporation to not only survive but thrive in today's global outsourcing environment. The Insider's Guide to Outsourcing Risks and Rewards is a comprehensive and accessible resource that assists an organization in deciding whether it will benefit from pursuing-or not pursuing-such an endeavor.

The author, an 18-year veteran of the IT industry, is an experienced consultant, software developer, manager, and entrepreneur. Providing an authoritative and unbiased view, he helps the reader navigate through a number of offshore outsourcing issues related to software management and international business. He examines the potential benefits derived from offshore outsourcing, as well as the possible pitfalls and how to avoid them as they apply to an organization's particular situation.

Offering a unique combination of technical and political insight, The Insider's Guide to Outsourcing Risks and Rewards is the one resource to have when trying to figure out your organization's next step.

Product Details

ISBN-13: 9780849370175
Publisher: Taylor & Francis
Publication date: 05/03/2006
Edition description: 1ST
Pages: 312
Product dimensions: 6.12(w) x 9.25(h) x 0.90(d)

About the Author

Johann Rost, Ph.D. has worked in the software industry as a consultant, software developer, technical leader, software manager, and entrepreneur for 18 years. He spent about half of this time offshore in Romania. He received his doctorate in computer science from the University at Paderborn, Germany. Currently he is teaching information systems at the University Politehnica in Bucharest, Romania and providing consultancy for software projects, both onshore and offshore. Contact him at

Table of Contents

Myths about offshore outsourcing
Best Practices
Risks and Hazards
Checklist for strategic successful offshore outsourcing
Opinions and Hard Numbers about Global Sourcing
Annotated Glossary and Synonyms

Technological drivers
Commercial and Strategic Drivers
Allotting driver priority

Realistic Estimation of Costs
Costs Dynamics
Communication Cost
Overall Business Subsistence in Case of War and Disasters

Importance of Background Information About the Contributing
Investment Climate
Economic Facts in the Offshore Country
Legal systems

Vendor Selection and Contract Negotiation
Diligence Due - Eliciting Information About Vendors
Vendor's Need to Garner Information Regarding the Customer
Dispute Resolution
Benchmark Audits

Conflicting Viewpoints: An Introductory Case Study
Customers and Vendors
Staff in Developing Countries
Management of Human Resources in Emerging Software Industries
The Customer's In-house Team
Offshore Manager
Envoys from Western Companies
Offshore Staff Working in Industrialized Countries
Offshore Advisors
Shady Business Agents
The Public Opinion in Industrialized Countries: Globalism

Options for Business Models
Constraints for Business Models
Communication and Cultural Distance

Less Challenging Projects
Projects Requiring Very Specific Technological Know-how
Virtual Teams
Highly Iterative Development Processes
Unsuitable Projects

Fixed Price Contracts
Unit-Price Contracts
Guarantee Period
Transferring Responsibility for Source Code
Service Agreements - Outsourcing the IT for a Certain Time

Espionage: An Introductory Case Study
Targets of Espionage
Potential Security Vulnerabilities in Offshore Scenarios
Defense Against Espionage
Termination of the Outsourcing Relation
Contractual Stipulations
Vendors Forestall the Departure of a Customer
Issues of the Post-termination Transition
Hard Numbers

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