Are you referring to outsourcing locally or worldwide?

When outsourcing to a foreign country is used, what is the process when deliverables are not met or legal recourse needs to be taken?

One thing we ran into in the government quite a bit was the strict documentation requirements for outsourcing. There is virtually no recourse if one app stops working because of changes made for another one to work unless it is all in the contract. If a user has a problem it can affect many apps and the contracter will only troubleshoot and repair an app or item specific to the contract. We had users left that could only use one program because the support was only for that single app with the contractor. He didn't care if they could use their email, spreadsheet, connect to the AS400, connect to the secure backboen, use the Oracle client, etc when he left but he made sure that his app worked. Sometimes the user lost all drive mappings because the contractor came in and mapped the drive he wanted for his app and destroyed the rest.


>Hi,
>
>Got to http://answers.google.com/answers/threadview?id=343642 and found a summary of Risks in Information Systems Outsourcing, thaf follows:
>

>
• Risk of loss of specialist staff/expertise
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• Risk of loss of control of strategic technological direction
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• Security risks to confidentiality/trade secrets/access to business data
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• Risk of loss of control of vital business processes
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• Risk that costs can increase
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• Risks that staff will be resistant to change
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• Risks of technological/cultural/legal problems with the supplier
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• Business always changing, risk of being left behind/stagnating
  >

>As an in house systems developer I'm interested in pointing out to my client those risks associated with outsourcing in a way he can decide what to outsource or not.
>
>Also found in http://www.e-zest.net/Outsourcing_Central, somewhere in the text:
>
>What kinds of software outsourcing development resources are available on the market today?
>When you need to go beyond your own organization to get software development done, there are several types of resources you can rely on:
>
>"Independent Consultant" - Go for it If your needs are small, and coordination with a lot of people is not a key factor for you. There are a number of individuals working on their own who have excellent skills and can be reasonably priced since they usually work out of their own homes, which is less expensive as far as additional costs. Make sure that the independent consultant is a really good match of the skills you need because he/she most likely will not have the ability to tap other people into his/her organization.
>
>Later, also can be read:
>
>What is a time and materials contract?
>"With that type of contract, the client agrees to pay by the hour for the effort put into their project. With this kind of project, you will not have to worry about the issues of what is included and what is not, like you do with a fixed bid. You and your vendor can make decisions and press ahead with the project. It will also be easier for you to have a say in how things are done since you will have to pay the price if the least expensive route is not chosen. A time and materials contract also puts pressure on you to do everything possible to assist the vendor do a good job. This usually makes for better projects. The negative side of this type of contract, however, is that you will not know your exact cost ahead of time - so, if you do not pick a good vendor, your costs can get away from you quite easily. If you opt for that kind of contract, it is crucial that you keep track of what you are asking for and insist on good faith estimates so you can control your budget."
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>Can anyone make his/her comments about this subject in order to give me more arguments to tell my client?
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>Thanks!
>
>Fernando