The big business of outsourcing to India is heading for hard times unless Indian companies pay attention to several key issues: product quality, tight project management systems, and on-time delivery.
It is certainly true that Indian companies need to move up the value chain in these trying times. India remains the country with the most SEI CMM Level 5 companies. But these firms need to adhere strictly to key processes and quality standards that will keep them the blue-eyed darling of the tech industry. As the following case study shows, bad things happen when they don’t. This is a “real world” example, and a lesson to study.

LACK OF COORDINATION A well-known software development organization accepted a project outsourced to it by a leading financial company. The proverbial saying that “well begun is half done” unfortunately was paid only lip service in the handling of this endeavor — with harsh results.

From the start, the bagged order was a case of over-commitment. Normally, during contract negotiations, the marketing people consult with the project head to get an accurate estimate of how long it will take to complete the project. In this case, the marketing professional failed to take this step, a case of miscommunication between both parties.

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