Success with outsourcing is easier said than done. It is full of operational and budgetary problems. If you have outsourced projects to offshore locations, you already know these factors:


Frustration 1: Finding the right people:
A google search for offshore outsourcing results in millions of results. If you go to elance or Guru.com, their systems are cluttered with thousands of vendors. And the funny thing is that all providers are the leading providers and all companies are number one - according to them.

The 64,000 Dollar question is: How do you find the right people? When we tried to answer this question for ourselves, we lost a lot of money in experimentation. Eventually we figured that if we were going to outsource, we should better setup our own offshore subsidiary.

Answer:You have to go to the source. In other words, you have to bypass a few layers of intermediaries and get close to the actual people who will be doing your work. These are the people who do your work day-to-day.
With Ewises, you start off by selecting your own staff. We do the "finding" for you and you make the selection.


Frustration 2: Getting the right price:
If you have posted your project on elance or Guru you know this frustration. And if you have have ever sent an RFP to a lot of companies, you know this pain in a greater way. Here is why you cannot get the right price: Offshore vendors are not in the business of giving you the right price. They are in the business of getting the most out of their sales effort. In other words: There is no right price. Whatever someone can get away with, is the right price for them.

When an offshore vendor charges you $18 or $12 per hour, you should know that most of this money goes to the business. The actual programmers doing the programming only make 10-18% of this amount. That's why they "play" with the bids. With Ewises the equation is the exact opposite. We eliminate the need for getting the right price. You already know what you are paying your engineers and you can estimate your own budgets in a much more realistic way.


Frustration 3: Forced Budget Overruns:
This happens all the time. You get a fixed fee bid from someone, and halfway through the project, they come back to you for more money. They cite "changes and modifications" as the reason for budget increase.

Here is why it happens: Fixed fee bidders bid extremely low to hook you in. They know that you will eventually make some changes to the specification. And when that happens, they make up for the initial low bid.

How to avoid it: If you must go with a fixed fee bid, then go with a realistic bidder. Otherwise, Ewises is a much better option.


Frustration 4: Who is in control?:
This happens on large projects. The vendors usually provide you with layers upon layers of project managers and engagement managers. In some cases, they charge you by-the-hour for their front end staff. The end result is that projects get out of control. You request something from your vendor and by the time it gets to the actual people working on your project, it has been translated and mutated twice. Your vendor keeps running the billing clock but your project grinds down to crawling speed. The worst part is: You can see it but cannot do much about it. Many times, they have a new customer for the team working for you. If you ever notice that few people on your team have mysteriously disappeared -- it is because they are now with a new client.

With Ewises, you structure your own teams (big or small) and setup your own controls. The people report directly to you. If someone on your team is not performing, you can let them go and get someone else. It's a different kind of outsourcing.


Frustration 5: Nonstop Haggling:
Once you are on board with a vendor and the "honey-moon" phase is over, the nonstop haggling phase begins. It seems that you have to haggle for everything: Schedules, Changes, Technology, Costs, and Contracts. And God forbid if the project is a bit behind the schedule, add " 180 degree finger-pointing" to the above mix.

Here is why it happens: Once your initial payments are cleared and the project is in progress, you are just a "passenger" to your vendor. Their aim (for the most part) is to get you off their bandwagon quickly and cheaply.

How to avoid it: Don't be a passenger. Drive your own offshore initiative. If you cannot setup your own subsidiary offshore (quite painful in a different way,) work with us.