Contact Us

Unified Technologies LLC

West Coast:
7260 W. Azure Dr.
Suite 140-730
Las Vegas, NV 89130

East Coast:
12 East 46th Street
2nd Floor East
New York, NY 10017

Phone:
+1-646.915.0919
+1-954.317.3944

Contact Us

Knowledge Centre

Myths and Facts about Outsourcing

Myth

There is no quick or easy path to offshore outsourcing success. Those expecting a quick win are sure to be disappointed - there will be no overnight cost benefits. The companies that are now outsourcing offshore successfully have spent years building experience and relationships with their overseas providers. It can take one to three years (depending on your level of experience) before the savings exceed the incremental costs of establishing successful offshore relationships.

Fact

All the above mentioned points may be true in general, but they are away from the truth, when the outsourcing partner is BeyondKey.

At BeyondKey we start identifying and addressing the potential problems of our prospect Clients even before we enter a contract with them. To help our clients become free from the worries and reach their breakeven much early. We have designed our billing costs at a level that the Savings of our Clients can be significantly visible as soon as we start working with them.

Myth

The cost advantages of sending work overseas are seldom as great as service providers and consultants claim. Outsourcing offshore can be a significant contributor to the bottom line, but it will not deliver the 50 to 70 per cent cost savings that some proponents tout. A more likely figure is 20 to 25 per cent - and that is only if you are properly prepared to move work offshore and the implementation is flawless. Even a few slip-ups will soon erode those savings. The same is true of quality. Service levels will be better than in-house only if you have quality-enabling processes in place at your end, too. If you do not, you will need to invest time, resources and management attention to put in place consistent end-to-end processes that seamlessly integrate your organization with that of the outsourcing provider.

Fact

We claim much higher Savings (60%-90%) than that is being discussed here. Our concept behind providing high savings without compromising on quality is mainly focused on our cost control techniques by avoiding wastage on costly infrastructures, Multi-level management hierarchy system and a very talented and flexible team in terms of technology, location, and office-hours. The extra savings made by Client can be used for developing and implementing high quality features and processes to coordinate with us better.

To take care of, time, resources and efforts for setting up consistent end to end processes for coordination, we provide expert on-site consultations and services. A domain expert from our organization may be available at Client's location to help them out in setting up robust and transparent processes for onsite - off shore communication and coordination.

This expert can take care of everything starting from gathering the requirements to documentation and implementation of all the processes that are required.

Myth

Offshore Outsourcing decision involves a long analytical process and preparation before start.

Fact

Offshore outsourcing is the new 'killer app' sweeping through corporations across the US and Europe. Banks, insurance firms, telecommunications companies, airlines, manufacturers of all kinds, technology companies and even government organizations are shipping overseas everything from a few backroom programming tasks to entire business processes. From every side come exhortations to embrace offshore outsourcing now, or risk falling irrevocably behind your competition. The underlying logic is simple yet urgent: the sooner you send IT and business processes offshore, the quicker and greater the cost and quality benefits you will accrue; and companies that delay or refuse will soon find themselves at a competitive disadvantage.
The only thing that needs to be looked into is who is providing you the Best Deal, in terms of Cost and Services.

Myth

Labour cost savings look impressive when you outsource to Large MNCs.

Fact

Cost Savings can be multifold, when Outsourcing with small companies, who are specialized in the domain of your work. As, in addition to the standard services at a much lower cost you can be assured of a quality service with the expertise and experience small companies have earned.

Offshore outsourcing to small companies is growing in popularity because it offers what appears to be an irresistible combination: quality services at greatly reduced cost. Unlike many traditional onshore alternatives, offshore outsourcing can deliver enormous cost reductions by replacing expensive internal workers with inexpensive offshore labor doing the same work. Labor rates inside the US and Western Europe are three to ten times the rates paid elsewhere for comparable work. The cost of facilities is often significantly different as well.

With such large cost differentials, it is not surprising that many CEOs and CFOs are eager to send overseas anything in their IT and back-office functions that is not bolted down, to these small domain-specialized companies.

Myth

Offshore outsourcing offers compelling benefits, only to large, multinational companies.

Fact

It has been by now clear that, while big multinational companies are minting money by Outsourcing their IT related jobs, the new era of outsourcing is shifting towards mid-size to small companies. Small companies, with their limited staff and less complex processes can get more customized services to suit their specific needs at a much faster way without the involvement of tedious and old - established processes, which huge companies cannot get rid of very easily.

Myth

Is offshore outsourcing really a quick and easy treatment for corporate corpulence? Or is it merely the latest bandwagon - a cure-all for business ills, and one that's likely to be worse than the disease?

Fact

While there are obvious benefits to be gained by sending work to low-cost offshore providers, there is also good reason for suspicion. Yes, the globalization of services and labor markets is unstoppable. Yes, the offshore outsourcing industry has matured rapidly and the capabilities of some providers are formidable. Just by keeping your eyes and ears open in identifying the Outsourcing vendor can avoid the problem. You should always start with small steps towards outsourcing, and once you become comfortable with the Vendor, you should plan a big jump .BeyondKey is always happy to start with a piece of work, and takes this as an opportunity to prove its capabilities and demonstrate the kind of cost savings they can provide.

Myth

Overall savings will not be nearly as great as the salary differentials suggest. Other factors need to be considered as well. For example, the costs of transitioning work overseas and the long-distance coordination of work are non-trivial. Transition and coordination activities add 15 to 25 per cent to offshore rates.

Fact

No doubt, other factors (than salary differentials) have to be considered, and here Outsourcing to small companies with expertise in your domain of work can do the job.

BeyondKey with its proved experience and expertise in the field of Finance and Insurance is all set to take the next generation Outsourcing into its hands.

Myth

Labour costs are dynamic, not fixed.

The more companies that send work to a country such as India because of its cheap labour and long-standing experience in this field, the more likely prices will rise there, decreasing its advantage. It is already happening: some reports indicate that Indian IT labour rates are rising and will soon approach those of the US and some Western European nations.

The Indian labour advantage will hold up for only another few years.

Fact

Salary differences between US and India labors are still huge. While you can immediately start materializing benefits of Outsourcing with BeyondKey, you always have the facility to choose to enter a long term contract with suitable Caps on Labor cost to ensure your Savings remain at a desired level.

Myth

High turnover rates eat into cost savings by lowering the productivity of the offshore team supporting your organization.

Fact

While this is always a problem with the growing economies like India, we at BeyondKey have identified unique ways to handle these issues.

Setting up our operations in 'B' and 'C' grade cities in India, gives us an easy access and retention to 'Local talent'. Talented youth from these small cities can earn a standard salary without incurring rental and other basic costs and at the same time without participating in a Blind Race towards Metropolitan cities, in turn increasing population and other infrastructure related pressures on those cities.

We at BeyondKey take care to provide our employees an open opportunity for showing their talents and provide their suggestions after providing them domain and technology related trainings and certifications, an easy access to Higher Management, and very flexible policies to make them feel comfortable without compromising on  services to the Clients.

Myth

To maintain labour cost advantages over the long term, companies will need to carry on playing the global labour arbitrage game. Switching vendors or moving operations from one country to another on a relatively frequent basis will be required. This approach will consume additional management attention, resources and time. It may be less hassle to rely on your outsourcing provider to manage this process, but then you must work out an arrangement to share the savings with the provider which takes even more time and resources to negotiate and monitor.

Fact

To avoid these situations, BK has prepared strategies and a negotiable contract facility. Instead of Our Clients moving operations to different locations/countries, we ourselves have established our offices at less costly cities, with an abundance of talent around.

Myth

Offshore outsourcing of labour-intensive activities such as programming is rarely a simple substitution.

Fact

With BeyondKey's experienced and domain expert resources, this can never be the case. Explaining the requirements to our Business Analysts is all that our client needs to do. Providing everything Starting from documentation, coordination, development and testing to suggesting alternative solutions to the existing problem are the characteristics of our workforce.

Why BeyondKey ?

Besides low labor costs, another often-cited advantage of offshore outsourcing is the high quality of service delivered by skilled people and standardized processes. We realized that it takes more than 'Smart people' to deliver high-quality products and services consistently. That is why we have turned ourselves more 'Process Oriented' than 'Person Oriented' to ensure low cost and consistency.

BeyondKey claims unique leadership in the area of quality, particularly in software programming and testing, by offering high-caliber staff rigorously executing optimized processes. We know that strong academic credentials alone do not guarantee quality execution. It may be dangerous to assume that all workers in a company that claims SEI CMM Level 4 or 5, will execute at this level on every project. CMM certification is awarded to teams and sites, not corporations, so you cannot assume that the people working on your account participated in the exercise.
That is why BeyondKey has decided to focus more towards 'Client Satisfaction' and 'Client Feedback' than towards mere certificates for Quality.

We understand that delivering quality services often requires intimate knowledge of the company concerned and the business context in which it operates, as well as a commitment to its goals. And here our unique On Site-Offshore model comes into play. With a Senior resource available at Client's office (This can be Permanent, Short term, Visiting…as required), we try to gain in-depth knowledge of Client's operations and Goals.

With our regular reviews, and multilevel verification process we always make sure that "The quality of the process remains high, but the process itself is not compromised for the specific task at hand".

At the same time we are aware of the importance of 'Flexibility' over 'Standardization' in certain situations to maintain our ability to be flexible and adaptable to respond to new opportunities and changes in its business.

We also have our eyes open to observe the penetration of Agile Methodologies in the IT Industry.

Some, Iterative methodologies such as extreme programming explicitly 'stress test' requirements and assumptions in near real time. Such methodologies can only be properly employed in the physical presence of the users for whom the system is being designed and implemented. Our answer to this is our less costly Onsite Services, as compared to other vendors. To control the gap in communication due to different time zones, we use our unique Onsite Offshore Model.

To ensure the Savings of our Clients on the biggest costs in the transition process on preparation of the offshore staff - knowledge transfer, training, and cultural and organizational familiarization, we keep our work force on toes always to take the new challenges and using their prior experience in the same domain shorten the transition period. The gaps in communication between different Time Zone SOURCING: CHEAPER, FASTER, BETTER OR A CHEAP, FAST BET?

Insurance being a domain complex to understand, we have observed that, Additional quality assurance (QA) measures may be needed in some areas.

Beyond Key after completing the testing at their end provides 100% support in data preparation, backups, case creation, test planning and approval processes to ensure a convenient a reliable UAT at the Client's site.

With BeyondKey bringing offshore activities back in-house if necessary will not be difficult.

We are confident, that this will not be required at any point, but if this may be the case, our contracts clearly state that every Onsite-Offshore support will be provided to complete this process.