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Although this sort of study can be costly, there are definitely benefits, such as the following:

• Project requirements and specifications are clearly established before any work begins.
• The project can be reconciled with the budget.
• If it turns out the project is not feasible, it can be cancelled before too much time,
money, and effort are committed.

Quite often, projects fail because specifications were not determined before the work
began.
Success Strategies
When outsourcing, there are some realities you must embrace—not only to be successful in
your endeavor, but also to keep moving ahead productively.
First, don’t immediately expect to see cost savings from your outsourcing project. A lot
of times, you will have to support duplicate efforts—here and abroad—until the transition
is complete.
Realize also that another company is performing the work you’ve delegated. It’s a
different company, not an extension of your company. As such, that company might not
have the same background your company has. It’s best to work with the outsourcing service
provider as flexibly as possible.
Mistakes and performance problems are going to happen. There’s no way around it. PART III
However, if you work some “planned mistakes” into your overall project timeline, you’ll be
doing yourself a favor. When mistakes do happen, don’t lose your cool. You have to be able
to correct them in a professional manner.

NOTE That doesn’t mean your outsourcing service provider can drop the ball every step of the way.
They need to be accountable and give you what you expect. If you’re having repeated problems, it
might be time to find a new provider.

If you are outsourcing a project that involves a call center, many service providers have
live call-monitoring capabilities. This allows someone from your organization to listen in—
in real time—on the work that is being done. By doing this, you can hear what’s going on in
your company’s name without going overseas to do it. There’s also an element of policing.
Outsource service providers are less likely to misbehave or do shoddy work when they
know they might be listened to.

Payment
Invoicing and payment will vary based on the project, the size of the outsourcing service
provider, and the work. Table 5-2 compares the sizes of companies and how billing and
payment normally works.
Price will vary, based on the company size and type, the number of Western staff onsite,
and whether or not the firm maintains a North American office. However, like buying a car,
home electronics, or frozen pizza, picking the least expensive company isn’t always the best
bet. If you go the cheap route, it’s more likely the provider will hire poor-quality staff or
that the turnover rate will be high. Ultimately, you get what you pay for.