Vendor Selection

Vendor Evaluation and Selection

Proper evaluation and selection of offshore vendors is vital for your business’s success in overseas outsourcing. When you outsource important business functions, you will inevitably lose some control over the project, including its quality standards, budget, and timeline. That’s why it is so important to select the right offshore partner, who will not only complete the work to your standards, but also have a compatible working culture and high ethics.

During the evaluation and selection process, your business should address each of the following considerations with potential offshore vendors.

  • Intellectual Property Rights: Within the confines of the laws of the onshore and offshore countries, your business and the overseas vendor must reach clear agreement about who will own the information transferred during the project, as well as the final software product. A detailed contract is essential for mitigating disputes that could otherwise arise during the course of the project.
  • Protection of Proprietary and Confidential Information: Your chosen offshore vendor will have access to a significant amount of confidential and proprietary information from your business. You must be confident that your offshore vendor will work protect the safety and security of your information during every stage of the project, from exchanging data at the project outset to storing it after the project has been completed. Your business should be intimately familiar with the offshore vendor’s security policies and practices and have strong guarantees that confidential business information will not be shared with third parties without prior written authorization.
  • Termination Clauses: Your business should look for a stable, long-term relationship with an offshore vendor for at least the full duration of the project. However, in the even that disagreements arise or conflicting commitments or a changing market environment require early termination, it is critical that your outsourcing contract include an adequate termination clause that addresses the legal environment in both the onshore and offshore countries. An appropriate termination clause should result in significant financial losses for the company that terminates the agreement, providing an incentive to carry the project to completion. And your company should always have a contingency plan for completing the project just in case the chosen vendor decides to quit working on the project before it is finished.
  • Regular Progress Reports: Clear communication and regular, thorough reporting are essential for keeping your business informed about the status of the offshore development project, and for keeping the offshore vendor informed about changes in your project needs. A clear reporting structure and schedule should be defined and agreed to in writing before the project begins. An adept project manager will be able to monitor the project’s progress and quickly inform your business about milestones and obstacles, as well as any anticipated deviations from the terms of the contract. Your contract should explicitly address who will be involved in communication and reporting at each company, and to what extent.

Orient Software has developed a delivery model that will help you and your company resolve these and other issues onshore. As a global IT consultant, we pride ourselves on delivering products and services of the highest quality to prominent clients all over the world at low cost.