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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

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9. Amazing References:  The Davao company one day took it upon themselves to claim that they had done all the design work for my friend's firm in order to impress their other potential clients and government officials.  This was a blatant lie of course.  My friend was horrified to find their company's information littered all over their website making all kinds of claims that weren't true.  The Davao firm apologized profusely and didn't know how that information got there.

10. Lack of employee accountability:  They were running an operation where employees were allowed to basically set their own hours, download music while working and chat with friends, all at the same time.  This was "fixed" of course..   But again, shows the level of discipline they set outside of foreign client pressure.

11. Employee Training.  The employees were very green and it required extensive training by my friend's company, which they found to be not worth while.   Wasn't outsourcing supposed to be about hiring competent professionals?  Not spending your whole day training.

12. English as a 2nd Language:  Although the Philippines is known for their English speaking ability, the truth is that they can barely speak English.  Sure they can read and write some, but speaking?  They have a thick foreign accent and in truth, English is a 3rd language for most.  They have their main national dialect to deal with along with their village dialect.  Their pronunciation ability is crude at best.

13.  Sudden Disappearances:  My friend noticed that as soon as his company made their last payment, the Davao firm suddenly disappeared without word and without a trace.  They still exist, but they no longer correspond with him like they used to.  I guess it was all about the money.

14. More bad news:  One of the stipulations of their multi year contract was that the Davao firm was not to solicit business or do business with any other foreign firm.  This was to protect their trade secrets and investment in time and resources into the staff.  Sadly, my friend discovered that they had registered another domain name and was already in the process of soliciting outside business (in effect violating their contract) weeks before they had fired them.

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