The Insider's Guide to Outsourcing Risks and Rewards: 1st Edition (Hardback) book cover

The Insider's Guide to Outsourcing Risks and Rewards

1st Edition

By Johann Rost

Auerbach Publications

312 pages | 32 B/W Illus.

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Hardback: 9780849370175
pub: 2006-05-03
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It is essential for a corporation to not only survive but thrive in today's global outsourcing environment. The Insider's Guide to Outsourcing Risks and Rewards is a comprehensive and accessible resource that assists an organization in deciding whether it will benefit from pursuing-or not pursuing-such an endeavor.

The author, an 18-year veteran of the IT industry, is an experienced consultant, software developer, manager, and entrepreneur. Providing an authoritative and unbiased view, he helps the reader navigate through a number of offshore outsourcing issues related to software management and international business. He examines the potential benefits derived from offshore outsourcing, as well as the possible pitfalls and how to avoid them as they apply to an organization's particular situation.

Offering a unique combination of technical and political insight, The Insider's Guide to Outsourcing Risks and Rewards is the one resource to have when trying to figure out your organization's next step.

Table of Contents


Myths about offshore outsourcing

Best Practices

Risks and Hazards

Checklist for strategic successful offshore outsourcing

Opinions and Hard Numbers about Global Sourcing

Annotated Glossary and Synonyms


Technological drivers

Commercial and Strategic Drivers

Allotting driver priority


Realistic Estimation of Costs

Costs Dynamics

Communication Cost

Overall Business Subsistence in Case of War and Disasters


Importance of Background Information About the Contributing


Investment Climate

Economic Facts in the Offshore Country

Legal systems


Vendor Selection and Contract Negotiation

Diligence Due - Eliciting Information About Vendors

Vendor's Need to Garner Information Regarding the Customer


Dispute Resolution

Benchmark Audits


Conflicting Viewpoints: An Introductory Case Study

Customers and Vendors

Staff in Developing Countries

Management of Human Resources in Emerging Software Industries

The Customer's In-house Team

Offshore Manager

Envoys from Western Companies

Offshore Staff Working in Industrialized Countries

Offshore Advisors

Shady Business Agents

The Public Opinion in Industrialized Countries: Globalism


Options for Business Models

Constraints for Business Models

Communication and Cultural Distance



Less Challenging Projects

Projects Requiring Very Specific Technological Know-how

Virtual Teams

Highly Iterative Development Processes

Unsuitable Projects



Fixed Price Contracts

Unit-Price Contracts

Guarantee Period

Transferring Responsibility for Source Code

Service Agreements - Outsourcing the IT for a Certain Time


Espionage: An Introductory Case Study

Targets of Espionage

Potential Security Vulnerabilities in Offshore Scenarios

Defense Against Espionage

Termination of the Outsourcing Relation

Contractual Stipulations

Vendors Forestall the Departure of a Customer

Issues of the Post-termination Transition

Hard Numbers

About the Author

Johann Rost, Ph.D. has worked in the software industry as a consultant, software developer, technical leader, software manager, and entrepreneur for 18 years. He spent about half of this time offshore in Romania. He received his doctorate in computer science from the University at Paderborn, Germany. Currently he is teaching information systems at the University Politehnica in Bucharest, Romania and providing consultancy for software projects, both onshore and offshore. Contact him at [email protected]

Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Production & Operations Management
BUSINESS & ECONOMICS / Project Management
COMPUTERS / Information Technology