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Business IT Outsourcing Nightmares
Outsourcing Information Technology Work to The Philippines, Pitfalls, Experiences, What to Avoid, How to Make Sure You're Getting Value for Your Investment Dollars..
12/21/04

Business outsourcing is all the rage today.  Who wouldn't want to cut their business costs by 20-50%.  I was recently talking to a good friend of mine who's company just did the two-step with the outsourcing bug.

My buddy's company was looking to cut costs by outsourcing some of their graphic design needs.  They went through a period of research and settled on a small company in Davao, Philippines.  I don't want to reveal the name of this Philippines firm, but let's say that it stars with an "H".

They seemed to be friendly enough and even agreed to do a "test run" at no cost.  This period lasted about a month, and they did "ok".  Most of all, they showed enthusiasm and the willingness to learn the material.  They had no previous experience w/ this style of work, they did do alot of basic graphic design work, but nothing that entailed copyrighting and research.

My buddy's firm signed a multi-year contract which involved a list of stipulations and requirements.  They ended up having to break this contract after about 6 months due to, in his words, "managerial incompetence, consistently not delivering on promises, lack of accountability, lack of business ethics and honesty, not answering emails, and the list goes on..."  The funny thing is that he still thinks they are good people, but that they are just clueless.

I can't sight him for breaking the "deal", in his words, they never complied, so it was never honored by them in the first place.

I'd like to convey a few stories he shared with me.

1.  The One Sided Contract:  For months, never installed the equipment they contracted to do the work.  Instead they would just promise.."it's coming soon.." 

2. Staff: Promised a top notch staff with specified qualifications, educational level and experience.  Instead they hired inexperienced newbies who had to learn on the job.  They cited "lack of time" as their reason.

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