A presentation on how outsourcing can help a business owner to increase ROI.

2. CHAPTER 1
INTRODUCTION
What is Outsourcing?
Why do we outsource?
CHAPTER 2
ACTIVITIES, WHICH CAN BE OUTSOURCED
CHAPTER 3
SELECTING THE PROPER OUTSOURCING PARTNER
CHAPTER 4
MANAGING OUTSOURCING
Before you begin with outsourcing…
Communication Requirement
Managing Diverse projects
Developing Relationships

3. CHAPTER 5
CASE STUDIES
CHAPTER 6
ABOUT KARMICK SOLUTIONS PRIVATE LIMITED
METHODOLOGY WE FOLLOW

5. INTRODUCTION
“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.” Lee Kuan Yew
What is Outsourcing?
Outsourcing can be defined as a process of subcontracting to a third party provider.
In simple words outsourcing means hiring a person or a company to perform a particular action. It is generally believed that
actions outsourced are non-core to the organization. For instance an insurance firm might outsource their landscaping and
janitorial functions to a third party because these aspects are not strategic to the primary business.
Outsourcing has been in the industry for quite sometime. In the recent past, it has been noted that companies across the world
have begun to employ outsourcing model even for narrow functions like billing, payroll and data entry. The outsourcing agencies
usually are very well equipped and can offer specialized facilities, trained personnel and cost effective functioning.
Outsourcing has been in the industry for quite sometime. In the recent past, it has been noted that companies across the world
have begun to employ outsourcing model even for narrow functions like billing, payroll and data entry. The outsourcing agencies
usually are very well equipped and can offer specialized facilities, trained personnel and cost effective functioning.
The late 20th
century saw the emergence of offshore outsourcing to achieve strategic and competitive advantage. The 21st
century
saw Internet making the world smaller and reduced the hassles of cross border business. Now even the medium and small sized
business enterprises can avail outsourcing services.
On a different note,

6. Outsourcing has been prevalent since time immemorial. If we take a close look at our everyday life, we will realize some of the
most important work related to our domestic life is regularly outsourced by us. Activities related to plumbing, carpentry,
housekeeping and a lot more are regularly being outsourced by us. Thus outsourcing is one of the primary business processes that
lead to specialization by proper division of labor.
Why do we outsource?
Outsourcing is considered to be one of the most crucial business decisions. Thus it is essential to have a proper evaluation of your
needs before going for outsourcing. The reasons for which you might intend to outsource can be any of these:
You have more work and less resources.
You lack experience or skills for performing a particular task and you are not very comfortable with the idea of your client
talking to a competitor.
You lack a framework of optimized process for carrying out a specific assignment. An outsourcing agency can do the same
work more effectively and efficiently.
You intend to maximize revenue by cost cutting.
You wish to make your business dynamic by changing fixed expenses to variable expense.
You are working towards development of the core competencies of your business and building future business strategies as a
result of which you want all the auxiliary tasks to be outsourced.
You are planning diversification of your business but meanwhile want your existing stream of business and profit intact.

8. Quote: “The No. 1 advantage of outsourcing effectively is the ability to free your time to concentrate on more important aspects of
business ownership.”
ACTIVITIES, WHICH CAN BE OUTSOURCED
Every business process can be outsourced. Select an outsourcing company and you will be amazed to find out that the work you
want is getting done within a shorter time and at an amazingly affordable rate. In this section of the book we have focused
primarily on the activities that are usually outsourced.
Tasks Related to Corporate Identity
Brochure Design
Logo Design (Corel Draw/ Adobe Illustrator)
Graphic Design
Tasks Related to Web Designing:
Interface Design (Adobe Photoshop/Adobe Dream weaver)
CSS2, XHTML, HTML Markup coding
Website maintenance
Website Validation Testing

9. Tasks Related to Software Development/Web Development/E Commerce
Coding (ASP.NET, VB.NET, C#, PHP etc.)
Web Application testing
Load Testing, Security Testing,
Interface Design
Software Requisite Specification
E learning, Documentation, Help
Tasks Related to Internet Marketing
Content Development
Keyword Research
Website Analysis
Link Building through article and directory submission, Press release distribution and Social MediaOptimization
Brand Management
PPC Management
Media Management
Blogging
Press Release Writing

11. Quote: “The other part of outsourcing is this: it simply says where the work can be done outside better
than it can be done inside, we should do it.” Alphonso Jackson
SELECTING THE PROPER OUTSOURCING PARTNER
Outsourcing will fetch lucrative results only if you select a proper partner. Entrepreneurs willing to outsource can either work with
outsourcing agencies or individual freelancers. The choice of an outsourcing partner depends on the magnitude and the quality of
the work you require. Budget also plays a very vital role in the selection of an outsourcing partner.
Outsourcing partners can be either:
Individual Freelancers
Outsourcing companies
Those who are willing to get one off tasks choose individual freelancers or small assignments get done within a short time span
without making huge investment in relationship building. However, the biggest drawback of freelancers is that they cannot
handle a huge amount of work. Moreover, quality might be an issue at a later stage. However, when you are availing services of
an outsourcing company, be rest assured of fulfilling deadlines and excellent quality. Keep the following points in mind when you
are selecting an individual freelancer for outsourcing a specific job:

12. Develop a brief about the project.
Elaborately mention your selection criteria which includes experience level, budget and quality of work desired).
Detail documentation of task and deliverable.
If you want to follow some specific process, document it clearly in the brief.
Log on to any of the free marketplaces like hireafreelancer.com, guru.com or elance.com to proclaim your project.
Begin interaction with the freelancers who have bidded for your project.
Choosing an outsourcing agency?
Follow these simple steps to get an outsourcing partner of your choice:
An outsourcing agency is an excellent option but requires a more elaborate selection procedure.
Collect a list of the good outsourcing agencies from Yahoo, Google and other top notch search engines, exhibitor’s list and trade
bodies like Consulates, Chambers and Associations.
Contact or write to the selected agencies
Ask for the following details when you write to the potential outsourcing partners:
1. For how long are they involved in outsourcing business
2. A list of their core competencies
3. Successful Projects they have worked for
4. Pricing
5. Delivery model
6. Service Agreements

13. 7. Quality Check Procedure
8. Process of Hiring and rate of retention
9. Systems and Infrastructure
10. Mode of Communication
11. Fiscal Report of the last 3 years
12. Credit Reports
13. Affiliations / Certifications
14. Recognition or Goodwill
15. References
It is essential to ask for a validation of financial statements and references. Once you receive the clarifications and validations
from the outsourcing agencies then you need to shortlist 2-3 companies for allocating the work. This is a stage where you can ask
for quotes from the selected bidders. Before sending details of any project to any of these companies, make sure you have a non-
disclosure agreement signed by the agencies. After getting the quotes, you can finally select an outsourcing agency for your work.
Follow these simple steps and see how outsourcing becomes easier and effective:
Provide proper and detailed description of the project to the outsourcing partner. Never fail to state the business motive
behind the project
A Software Requirement Specification is very much needed. Get it done by your outsourcing agency for a fee.
Draw up an agreement with mutual concurrence on payment terms, timelines, deliverables and acceptability tests
Please take a note of the jurisdiction of the agreement. For instance if you are outsourcing any of the Commonwealth nations,
then the law specifically designed for the member countries of Commonwealth is applicable

14. It is very essential to have some one technically sound to take care of the outsourcing operations. A person with techno-
management skills is preferred for this position because he needs to have a good understanding of the operations involved
in outsourcing. Excellent skills on documentation, feedback and sensibility for various cultures are an added advantage for a
person holding this position.
It is suggested that if possible the customer must visit the office of the service provider at least once to validate the details
provided.
Spending a few hours with the employees of the outsourcing agency will give you an idea about their capabilities.

16. “Outsourcing is increasingly recognized by businesses, universities and economists worldwide as a critical new management
science. Not only are the latest developments in outsourcing helping companies to reduce costs, but they are spurring innovation
and wealth creation at a time when we all really need it.” Michael Corbett
MANAGING OUTSOURCING
Before you begin with outsourcing keep the following things in mind:
When you are starting off with an outsourcing project it is necessary to have realistic deadlines. No need to rush with an
assignment with a steep deadline because that might lead to failure.
It is necessary to set a target before proceeding with outsourcing. Make your outsourcing partner well aware of your
expectations. Time, quality and cost are the 3 factors to be considered. Take a moderate stand on all the 3 factors taken into
consideration for outsourcing. Avoid extremes and accept the most acceptable remedial, escalation and alternative methods
Divide the assignment into phases for better execution and excellent results. Division makes an assignment manageable and
mitigates the risks of outsourcing.
Its better to negotiate about the ownership of the work beforehand.

17. Communication Requirements
Face to Face communication
Though it is believed that its preferable to go for a provider with a local presence but now technology has created new facilities by
using which you can even hold face to face meting with your outsourcing partner sitting thousand miles away. This helps in
diminishing cultural gaps and also exhibits the concern and seriousness your outsourcing partner have for your market. An onsite
team is very much required for large-scale projects. A good offshore team is enough to provide you with a detailed analysis,
feedback, and proper deployment.
Coping with Cultural differences
Once you begin working with your outsourcing agency, you have to understand that a cross-cultural relationship is also in the
process of development. So, its better to know something about the culture of the people you are working with. This makes the
process easier and you get the best work from your outsourcing agency.
Stating the obvious
Remember there are certain things, which are obvious for your in- house team. But keep on repeating the same things to the
offshore members as much as possible. Over communication is necessary in outsourcing.
Adding new expressions to your language
There are certain expressions, which are common and natural for you but the person on the other side, might not be aware of it.
So it’s necessary to enrich your vocabulary after knowing about the geographical location your outsourcing agency. Take a look at
the following expressions if you are outsourcing in any of the English speaking nations:
Use “ yeah” or “yep” for Yes
Native Place for home town
“On leave” for “on vacation”

18. Managing diverse projects
Make sure that the requirements are properly understood
Inadequate information collection and improper analysis is the primary reason for the failure of a project. Thus, it is essential to
spend sometime for gathering information. Apart from the practical requirement, attention must be paid to technology framework,
application security, presumed server load, and the user persona. This has to be applied prior to the beginning of the project;
otherwise the assignment can go in a wrong direction.
All workrequests must be send in writing
Communication over the phone or through instant messaging services or in face-to-face meetings can be done. But it is suggested
that all work requests must be send in writing via emails. This facilitate traceable documentation and will be of great help while
evaluating the project to identify loopholes and communication gaps, implement change management and augment the overall
performance of the process of outsourcing. The written documents prove very handy in case of any dispute.
An initial call and regularcheck-ins are necessary.
An initial meeting must be scheduled at the beginning of the project to communicate expectations, milestones and responsibilities.
Weekly review meetings are the next step for making clarifications, checking progress and take corrective measures, which include
permission, escalation, appeal for speeding up etc. Someone must be delegated for taking a note of the minutes of the meetings,
which will then be circulated among the team members so that everyone is aware of the action points.

19. Thorough review of the workbefore delivering it to the client
The fact is that the outsourcing agency is responsible for the deliverable. Thus it is very essential to check the work thoroughly
before sending it across to the client. In the initial stages of outsourcing the work process might not be very smooth. With the
passage of time, the work will get streamlined and situations will improve. It is very essential to have a support desk to report the
feedback regularly. A support desk tool will help you understand the rate of improvement in terms of the quantity of tickets.
On-time Escalation
Escalating an issue on time is very important. If something is not going as per requirement and expectation, it must be brought to
the notice of the project manager or the account manager. Good rapport with the top management of the company is preferred. If
an issue is escalated timely, responsible managers can work out something and take corrective measures to resolve the issue in a
mutually agreeable manner.
Developing Relationships
By now the readers must have realized the importance of time and efforts to establish a money-spinning outsourcing relationship.
Experts believe that its good to have handful reliable partners compared to plenty of mediocre sub contractors. Develop good
relationship with the partnering agencies and consider them as a part of your organization.
Both ways feedbackat the completion of every project
It takes time to develop an outsourcing relationship. Outsourcing relationship improves with the passage of time. As the cultural
limitations, requirements, processes and capabilities are understood by both the partnering agencies, a good rapport is built. A
critical dialogue at the end of every assignment is necessary. Inputs on the details about the working conditions, failures and
successes involved in the project will help in improving the mutual relationship. This kind of inputs can actually help you enhance
your in-house activities as well.

20. RegularCommunication of plans
Always keep your outsourcing partner well informed about the plan of action. Make them aware of the:
Any downsizing or expansion plan.
Any new technology needed to be adopted.
Any new framework of quality process being considered.
Any presumed decrease or increase in the volume of work.
This will help your partner to offer you with better service.
Investment in partnership
Investment can be done in a variety of ways in your outsourcing partnership. Some of the ways are mentioned beneath:
Fly down to the offshore team for review meetings.
Impart training to the team to enhance their domain knowledge and effectiveness.
Try to get into a mutually agreed joint venture.
Stick to flexibility.
RiskManagement
Outsourcing brings with it an extensive variety of risks as well. You need to be aware of certain things before outsourcing

21. Pay on complete delivery
You must have a well-defined project plan with preset milestones. Try to stick to the following pointers while managing payments
while outsourcing:
Pay only 30% of the total project cost upfront.
Further payments are to be made with the achievement of preset milestones.
Maintain records of all the invoices and accounts.
Priorplans have to be made forpost delivery support
It is ideal to make a post delivery support deal prior to the beginning of the project. Remember it is easier to bargain for a support
contract before the deal is finalized. Go for it even if you have to increase the total price quote.
Save yourintellectual property
In today’s era intellectual property is a big asset. Some things to be checked include:
Data Protection methodology and policy that includes security of network and server.
The employment agreement between the outsourcing partner and its employees.
Physical security of facilities like access control system.
Minimum data or proprietary technology should be shared for completion of the project. Mention categorically, which
information they can put to use and in what way.

22. Riskmanagement plan
It is always essential to have a foolproof risk alleviation plan. Make prior plans for situations like:
Change in management.
Unpredicted attrition.
When Service delivery is not up to the mark.
When Partner is going out of business.
Sometimes you would like to continue with the present provider. But it’s always better to be ready with an alternative action
plan.

24. CASE STUDIES
Case Study 1
One Tech Alliance
www.onetechalliance.com
Date of Development: January 2009
Title: Social Networking site for IT Companies
What we were asked to do:
Design and develop a social networking website to facilitate a networking resource for small businesses and to let them establish
strategic relationships with other members and to pump up their own revenue while expanding their business prospects. Members
located far away or having limited expertise should be able to offer their client base services through profitable relationships
accomplished at OneTechAlliance.com.
Showcase of the capabilities of the company in orderto append value to IT markets.
Creation of a respectable resource for OneTech members as well as the internal faculty through the website.

25. OurUnderstanding:
Target users would consist of IT related service providers as well as service recipients. The service providers would be able to
broaden their clientele whereas the clients would rest assured to receive quality services from the providers. Irrespective of
geographical constraints, the site should be able to build up a potential IT community.
The Outcome
This website is now serving IT companies and individuals across the globe smoothly.
Case Study 2
Discount Mugs
Www.discountmugs.com
Date of Development: January 2007
Title: Discount Mugs E-Commerce Project
What we were asked to do:
Design, develop and compose an innovative, distinct and fully functional online shopping cart for the retail base of customized
items like receptacles, glasses, mugs, commemorative plates, sports bottles and pens.
Maintain 100% security with transactions and user related information to prevent any kind of potential fraud or leak of any
important information. Publicity of some of their categories and products in the system.
Guarantee of complete control over information regarding products, customer details, order related information and other display-
oriented information through a high-tech control panel that permits customized reporting & other vital logs.

26. OurUnderstanding:
By and large, the site targets all people, young and old; businessperson or the common man, whoever wanted to have glassware,
ceramic ware, drink ware like mugs, glasses, plates, pens or bottles with their company’s logo or tag line or their loved ones’
picture printed on them to use them as business giveaways, mementos or gifts. So we needed to create user-friendly site with a
design studio in order to facilitate users to enter their search item.
The Outcome
The following year the sales climbed graphs noticeably.
BIBLIOGRAPHY
Books:
1. The Black Book of Outsourcing: How to Manage the Changes, Challenges, and Opportunities by Douglas Brown.
2. Strategic Outsourcing: A Structured Approach to Outsourcing Decisions and Initiatives by Maurice F. Greaver.
3. OUTSOURCE: Competing in the Global Productivity Race by Edward Yourdon.
4. Offshore Outsourcing: Business Models, ROI and Best Practices by Marcia Robinson and Ravi Kalakota (2004).
5. The Outsourcing Handbook by Mark J Powes, Kevin deSouza, Carlo Bonifazi
Providers
www.karicksolutions.com
www.tcs.com
www.infosys.com
www.mindtree.com

27. Marketplace
www.guru.com
www.getafreelance.com
www.elance.com
www.directfreelance.com
www.odesk.com

29. ABOUT KARMICK SOLUTIONS
Karmick Solutions is an offshore outsourcing company with an experience of more than 10 years in website design, website
development and website marketing. We have been able to provide the best of services to our clients across the globe owing to our
years of experience in web development and our vertical market expertise. We have to our advantage a winning combination of
high quality at affordable hourly rates. We have consistently maintained a high standard of delivery for our cost-effective
solutions.
We ensure the quality of development by having in place a standard format of documentation for every project that we undertake.
The various stages of development, integration and testing are laid out before the project starts. This in turn ensures timely delivery
of the project and 100% client satisfaction.
We offer services towards web designs, web application development, E-commerce Solutions, social networking websites, CMS
solutions, dedicated hiring, Customized ERP, Multimedia and Website marketing. We help you and your business take a step
further with the exposure you need to the web of globalization. We not only design and develop the web application, we also
provide a consistent technical support for your business to run smoothly and grow gradually.
We are proud of being a team of young, energetic and friendly professionals striving to enhance our performance with every
passing day. We share our experience and expertise on technology and business process with each other and jointly work towards
providing an effective, customized business solution to our clients. We have successfully achieved goals and targets set by us and
we are on our way to becoming one of the leading web development companies recognized globally.

30. Karmick’s Methodology
Ourmethodology follows:
Step 1: Arriving at a project's scope to ensure that Karmick and its clients are sure of what the deliverable product comprises. This
includes: Deriving Project Scope, Arriving at success criterion, Risk Assessment, Providing Technology Solution, Identifying
resources and skill set required, etc.
Step 2: Arriving at a high-level schedule plan with milestones in place, to give a clear picture to the client before hand of 'when‘
and 'what' will be delivered. It comprises: Project Plan, Architecture and Design, Development, Regular Product Builds, Regular
automated product testing, Test results and analysis and bug fixes, etc.

31. Step 3: Accepting any changes to the requirements during the project's life cycle, through change requests and providing
estimation in the delivery of the requested modifications. The procedure goes as follows: Setting up user acceptance test
environment, Client carries out user acceptance tests, setting up the deployment infrastructure with the required software, etc.
Step 4: This is the maintenance step. The main item here includes accepting bugs and minor changes and providing the delivery
date. During this phase only existing issues will be fixed. Any new functionality to be added or a change is required in
functionality that will result in change of work flow will be considered in change request.

32. Our Services
Website Development
Development of custom web applications using LAMP or Microsoft Technologies.
Organic SEO, PPC, Link building and Content Writing services.
Website
Design
Designing of website, CSS2 coding, Flash design and W3C compliance.
Search Engine Optimization
Engagement Models

33. This book acts as a powerhouse of information bringing together all the knowledge we have gathered over an
extensive twelve-year period of working with clients from across the world. Through a thorough
discussion on the best practices around creation, management, and expansion of profitable relationships,
the book attempts to be a realistic guide for individuals and businesses looking to find their right
outsourcing partner.

34. KARMICKHOUSE
116A, Purbalok (Premises No: 1118)
Street No: 6th
Kolkata – 700099 (India)
Ph. No: +91 33 24264362
Email : sales@karmicksolutions.com