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	Take It Outside! (of the U.S.)
	Some of the key points from the January 11 ExecutiveBiz panel on Outsourcing

	Panelists
	Moderator: Kevin J. Burns - Managing Principal, Lazard Technology Partners Peter Harrison – Chief Executive Officer, Induslogic Alexander S. Petty - President & COO, Jaxara DP Venkatesh – Founder & Chief Executive Officer, mPortal Mark Wesker – President & Chief Executive Officer, Artifact

	What are the biggest barriers to outsourcing?
	Our own internal cultural positions, along with anxiety and nervousness are all barriers that keep companies from outsourcing. We need to confront this head on. It may mean starting with the “low-hanging fruit” and at first only outsourcing those business units you feel comfortable with. You need to think of your company as virtual. You don’t need to have everything in one location. Find the people with the best talents.

	Who can you trust with your outsourcing and how do you de-risk?
	Whoever you use, you need to make some calls and check references. Find out who these companies have worked with and talk to those people. Look to hire a firm who understands what you do. For example, if you’re looking to outsource something banking-related, de-risk by finding the firm who has worked in the banking field. But, success does not always hinge on whether or not the project is outsourced or offshored. There is always a risk. As DP Venkatesh explained, 80% of software projects fail regardless of where the work is done.

	What are the drivers to outsource?
	You have to ask yourself if you’re world class in regards to the particular area you’re considering outsourcing. If you’re not world class, there may be someone who can do it better than you, leaving you to focus on your core competencies. Cost is also a large factor, but basing the decision to outsource solely on cost issues is insufficient. For example, time-to-market is a large factor in many outsourcing projects. Some firms are willing to pay more to get their product onto the market faster.

	How are time zones and different cultures a factor when offshore outsourcing?
	Working across time zones can be a positive in that it can lead to 24-hour productivity. As Alex Petty explained, this can speed up the software production process. Developers in Argentina can pick up where the developers in India left off, as the sun goes down in one location and rises in another. “As the world turns, software is being built,” explained Petty. However, this does pose some challenges. For example, a company must work around the holidays in each of the countries it outsources to. In addition, the language barrier can be an issue in some countries. Mark Wesker pointed out that this may be more of an issue as more countries, such as Vietnam and China, become bigger players in outsourcing. Peter Harrison made the point that, regardless of any stereotypes that may exist about who is better at what, the offshore markets and the talent pools within them are huge. The talent can be found within any of these countries to get the job done. Lastly, in addressing language barrier issues, DP Venkatesh added that some companies, such as E-LOAN give customers the option of having a U.S.-based representative answer their calls, but at a different price. The choice and cost of having a U.S.-based rep on the phone versus one located offshore is put in the hands of the customer.

Take It Outside! (of the U.S.)