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February 19, 2011 01:50 AM

Categories: R&D and Quality

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Joined: 12/19/2010

When we talk to customers about outsourcing they are a little reluctant, one of the reasons we hear is the data security not sure why this is comming up again and again.

Can someone share the typical concerns customer has about oursouring and solutions to address the concerns. How should we go about add convince the customers that outsourcing is the key in todays world.

Discussion:    Add a Comment | Comments 1-8 of 8 | Latest Comment

March 29, 2011 9:46 AM

Are you talking about outsourcing day to day business processes or just a creation of the initial system. Either way data security can be covered in the agreement or statement of works duly authorized by the local notary.

Chris, Developer, http://www.chrisranjana.com , Software company. Web development.

March 29, 2011 6:35 PM

1) Outsourcer will steal my code and/or idea
2) Outsourcer will not rigorously protect my code/idea (so somebody else steals it)
3) Ditto the above for names of my clients contained in my software (plus their other valuable data)

Finally: Sure, the outsourcer and I will sign an agreement, but as a tiny software company with no on-staff lawyer and no presence outside the US, what are my chances of recovering losses should 1, 2, or 3 take place?

March 29, 2011 10:21 PM

1) local programmer will steal my code and/or idea 2) local programmer will not rigorously protect my code/idea (so somebody else steals it) 3) Ditto the above for names of my clients contained in my software (plus their other valuable data) Finally: Sure, the local programmer and I will sign an agreement, but as a tiny software company with no on-staff lawyer and no presence outside the US, what are my chances of recovering losses should 1, 2, or 3 take place?
All valid points but suppose I substitute "local programmer" for "Outsourcer" would these concerns still be valid ?. Yes I think it would still be valid.

Chris, Developer, http://www.chrisranjana.com , Software company. Web development.

March 31, 2011 4:19 PM updated: March 31, 2011 4:19 PM

I disagree.

First, if something bad happens with a local guy, I can find him.
Second, the agreement I signed with him will be governed by the laws of my state.
Third, chances are good that we (and the lawyers) all speak the same language natively.
Fourth, if I do have to chase him down (or sue), my expenses will be far, far less.
Fifth, if other thieves are involved, chances are pretty good (tho not guaranteed) that they're local, too.

As one who has bought and sold real estate in foreign countries, let me assure you, when you get involved in a legal system outside your own country, it's a nightmare.

Now, none of this is to dissuade anyone from outsourcing -- there are many, many points in its favor. But the OP asked why software companies might be reluctant to do so -- that's what I've tried to address.

March 31, 2011 9:59 PM

Yes the other side of the coin

[quote]First, if something bad happens with a local guy, I can find him.[/quote]

Unless you are a gangster what are you going to do after finding him ? I mean legally you can do nothing whether he is a local or whether he is in another country ?


[quote]Second, the agreement I signed with him will be governed by the laws of my state.[/quote]

All agreements have a clause at the bottom which clearly mentions its jurisdiction so it does not matter whether the agreement is between locals or with another person in another country


[quote]Third, chances are good that we (and the lawyers) all speak the same language natively.[/quote]

Here is where finding a good outsourcer plays a part. You need to find an outsourcer from a country where majority speak english, assuming english is your native language.


"Fourth, if I do have to chase him down (or sue), my expenses will be far, far less."

Let's compare the rates of an US lawyer with that of say a lawyer in India. Not sure who is expensive ?

"Fifth, if other thieves are involved, chances are pretty good (tho not guaranteed) that they're local, too."

Yes again what are you going to do once you find them ? are you going to bash them up ?

If you are seeking legal remedy then I guess both outsourcing and employing someone local is almost the same unless you are a big shot or a gangster wherein it gives you an advantage.

Just my thoughts ...

Chris, Developer, http://www.chrisranjana.com , Software company. Web development.

April 1, 2011 1:27 PM

I guess we can agree to disagree.
As an India-based developer/outsourcer, you obviously have a vested interest in dispelling all hesitations; I do not.

April 14, 2011 8:09 PM

Bruce Hadley, Founder said: ... As one who has bought and sold real estate in foreign countries, let me assure you, when you get involved in a legal system outside your own country, it's a nightmare.
Good point...

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September 10, 2011 5:28 AM

There are various ways to overcome these kinds of problems in outsourcing.

First: Outsource the right activity--if it will directly impact your customers or it is the core of your business then never outsource it.

Second: Get the right provider--you need to have patience here. Do not only limit yourselves to just a couple of providers. Look for more.

Third: Consider reviews and feedback--it's good if you look for reviews of such provider and ask for some feedback of their previous employers or clients. Take time to interview them to discuss important matters and agreements. Also, ask how they handle the tasks and projects.

Do not always choose those lowest bidders--remember that you get what you pay for.

Discussion:    Add a Comment | Back to Top | Comments 1-8 of 8 | Latest Comment

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