Title:
The success factors in outsourcing to East European technical consultans.

Background

Many large corporations in Sweden know that they could profit from outsourcing of software development work to consultants in Eastern Europe. However, most of them are reluctant to do this since they have no possibility (or tools) to estimate the probability of success.

If all the success factors could be scientificially identified it would be easier for the Swedish corporations to decide what processes could be outsourced and if the risk would be worth taking.

Problem

It is very difficult to determine success factors since they depend on a mixture of technical, economical, political and cultural influences.

Economical – is it more effective and/or profitable than done internally or outsourced to local companies?Why more efficient? (Price, performance, others)

Technical – is it possible to get work done in time with assumed quality, and with support and guaranties required?
What is the ability to conform standards and requirements:

  • Infrastructure in place
  • Technology in place
  • Specialists in place
  • Technical advice

Cultural– how easy is it possible to communicate and cooperate? (Communication skills, understanding of requirements, mentality). What are the problems with cultural background?

Political– stability, possibility of money transfers, business travels, etc.

Purpose

To verife the validity of success factors for east European outsourcing acquired through holistic analysis of a qualitative study of large corporations in Sweden.

To define and validate Profits and Risks check table.

Method

1.Select Corporations

Requirements:

  • They must have a need for consultants or run software projects for themselves (for their own business or in order to produce software packages).
  • They must have an ability to make specifications, etc.

2.Select Case Study

Requirements:

  • Technical
  • Business
  • Experience
  • Contacts with Sweden
  • One or two contacts in Eastern Europe (Ericpol as one of selected).

3.Determine preliminary areas for outsourcing

  • Interviews all companies
  • Interviews Ericpol

4.Analyze specific needs in Companies

5.Construct possible business scenarios

6.Make a risk analysis of each

7.Empirical evaluation by simulating (from other case studies)

8.Create recommendations for corporations and Eastern European companies.

Results

List of success factors verified in interviews.

Profits and Risks check table verified in interviews.

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