We want to offer the best possible services to our clients. By the ways, we’ve studied how to do so and found top hidden costs of outsourcing and tried to avoid some of those costs for our clients.
1. Specifications cost:
Problem: Project external execution implies writing exhaustive specifications very expansive to produce. In fact, sometimes it’s even very difficult and hazardous to specify in advance, outside of any context.
Solution: We help our clients to write their needs with a progressive, step by step, iterative process which is integrated into iterative methodology (Scrum, XP).
2. Cultural Difference:
Problem:
A given expectation has a higher risk of not being understood well as communication go through different layers as languages, cultures, organization.Solution: We want to be the closest possible to our clients. We, Leoxia, always provide our european clients with a customer manager using the client preferred language for all communication and if needed, he will move to your office to get all your requirements.
3. Support and updates
Problem: Most of the time, contracts doesn’t include a software refresh/update support service and expenses could explode since as soon as system is in use, service provider is in a stronger position to negotiate higher rates.
Solution:
We always offer support service directly included in the project contract. Either included as soon as project begins or ordered after project is completed, pricing of support has a fixed cost based on an annual subscription plus our current hourly rate capped by a maximum. We want to build trust relationship with our clients and always conclude win-win agreements.
4. Turn Over in Offshore companies:
Problem:
Some offshore companies have huge turn over and then experience and knowledge of clients is probably lost over time. It means then that clients should regularly spend time to update their expectations.Solution: As employer, Leoxia offers solid packages to employees. We want t o capitalize on our people because they are our strength of today and tomorrow. We want to build expertise among our team members to provide our clients the best possible service.
5. Organization Change
Problem: If you transfer some of existing team workload to an external provider, then these teams would remain not used to their full capacity for the same cost which implies a loss of productivity.
Solution: Organization change could be used to redirect this unused work capacity to the client core business. Leoxia would be glad to help its clients to succeed in change management.
6. Outsourcing Governance
Problem: More often than not, companies underestimates the costs of outsourced project governance.
Solution: Leoxia aims to minimize workload of your project manager. To ease further its work, we communicate in the language you choose, either French or English, and provides summarized information sheet on a periodical basis to help you to get all information in one place.
7. Change Management
Problem: Change of system has inherent costs, such as knowledge passing. An existing system is working with the help of software but also with the hardware, and, maybe the most important part, the people. With a new system, comes potential updates of its dependencies with the related costs to do so.
Solution: We would be glad to estimates the costs and delays related to transition of one IT system to another. Such a study could usually be done in the early start of the project and could be included in the global project package.
8. Currency Risk
Problem: Currency exchange rates change in real time, so an invoice of 1 million USD means 804,322 € today but in one month it could be 1 million of euros.
Solution: We’re located as close as possible to our clients and our invoice are labelled in euro with firm pricing. At Leoxia, our services means we take care of currency risk for you.