by CIO Staff

Do You Need a Broker?

Apr 01, 20022 mins
IT Strategy

1. What’s your outsourcing experience?
I can write an SLA in Bengali. 10 points
My last company had an outsourcing deal…somewhere. 5 points
What’s an SLA? 0 points
If you’ve never outsourced before, then an offshore engagement might not be the best way to learn?not without help from an experienced partner, at least.
2. How well can you manage overseas vendors?
I always keep my watch set to Bangalore time. 10 points
I know a good dry cleaner at O’Hare. 5 points
The wife and I went out for Italian last night. 0 points
All outsourcing deals require strict vendor management, but offshore accounts need special care from people who are comfortable working with different time zones, cultures and languages.
3. How critical are cost savings to the success of your offshore project?
Cost savings are my greatest concern. 10 points
Well, yeah, it would be swell to save some money. 5 points
Saving money isn’t my job. 0 points
Typically, offshore deals save customers 30 percent to 50 percent in labor costs, but half these savings could be gobbled up if you go through a broker.
4. Are you looking for a long-term offshore engagement?
I’m looking for an ongoing rela-tionship with my vendor. 10 points
I think it would be nice to have an ongoing relationship, but I’d rather not commit. 5 points
Can you just design this one webpage for me? 0 points
The tier-one vendors are looking for long-term deals, not one-project stands. Your intentions may decide whose interest you attract.

If your score is 30-40 points: Do it yourself. Go directly to the nearest offshore vendor. If your score is 20-30 points: Maybe you should consider using a broker?at least until you get a better feel for the lay of the land. If your score is less than 20 points: You’re not ready to venture offshore alone.