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2010
Oracle offshoring a disaster

Oracle Tips by Burleson Consulting

June 10, 2015


Many IT managers are penny-wise end pound foolish, and after many years of fixing "Bangalore Bargains", it good to see that the Oracle industry has awakened to the reality of offshoring.  Oracle has become so complex that no single expert can know it all, and the key to continuous availability is to select remote Oracle support providers with proven experience:




Offshoring is not the same as outsourcing

Oracle outsourcing has been very well-received, especially in-light of the problems in the American market with Oracle professional attrition.  The average Oracle DBA stays at a shop less than 3 years, and outsourcing with a well-established American Remote DBA provider ensure that you have no loss of institutional knowledge:



The problem has been the bad reputation suffered by "offshore" Oracle providers.  The term "offshore" refers to Canadian support as well, and there have been huge disasters when attempting to save money with non-American Oracle support services.

While outsourcing has been successful, offshoring has been a disaster:
  • Offshoring is risky:  Allowing someone outside the USA to build your application can expose your corporation to excessive losses.  Foremost, it's important to understand that offshoring risks are not limited to India.  Even using a Canadian Oracle offshoring provider can expose your company to serious risks, as does using any American companies who are subsidiaries of foreign-owned companies.  You should consult a qualified attorney to understands the extent of these risks.

  • Offshoring is re-shored back to America:  A qualified coder can create system 20 times faster than a under-trained offshore developer, and many IT managers misunderstand that offshoring does not necessarily mean that the work is done in a low-cost country.  As a worldwide leader, Burleson Consulting provides significant consulting resources to offshoring companies in India.

  • Offshoring is low quality: Oracle database designed by untrained third world neophytes are called Bangalore Bargains, and they can be a nightmare to tune, which bizarre design features.   Time and time again, BC has helped companies attempt to recovery from a poor investment in Oracle systems.  Often as not, these databases are poorly designed and difficult to repair.

  • Offshoring is a poor value:  Offshoring promises great value, but nickels and dimes their clients until all savings are evaporated.  The notes below talk about the "great lie" of lower costs with offshore Oracle systems development.

Let's take a closer look at these issues to understand why offshoring Oracle support and development has been such a disaster.

Oracle offshoring risks

Experts agree to it is critical to use an Oracle remote DBA provider within your home country so that you are protected by your data privacy and consumer laws.

This article "Concerns of offshore outsourcers" notes that American companies may loose the legal protections that are afforded by U. S. owned companies, especially when managing databases, where mission-critical data could be siphoned-off to a foreign country, leaving the Oracle shop with little legal recourse:

"Bribing system, management cost of negotiation with officials, risks of detection of illegal activity, risk of breached contracts, etc. Increase the cost and difficulties of offshore business. Bangladesh, one of the popular destinations of offshoring, is the most corrupt country in comparison to Russia, India, China, etc.

Other concern is the theft of intellectual property. Sometimes domestic companies find that cosmetically near-flawless copies of their goods are sold cheaper in price than that of legitimate goods. Often these fake goods are returned to the company at the legitimate price.

Though IP laws are there, tracing down the overseas fake producer is extremely difficult. If these problems arise, the domestic companies doing business overseas may have no legal recourse. There are also reports of malpractice. "

The article also notes a Duke University study that indicates that Indian engineers are not of the same quality as U. S. Trained engineers:

"India is also supplying same number of graduate engineers as that of America, but they are not qualified enough.

Only 25% of technical graduates and 10 to 15 per cent of general college graduates are suitable for employment in the offshore IT and BPO jobs."

CIO magazine in an article titled "31 Risk in Offshore IT Outsourcing Contracts: Or Buying Promises", notes the significant legal risks associated with a foreign-owned IT provider:

"No matter how much due diligence you attempt, making a decision on contracting with an onshore or offshore IT service provider is much like buying promises.  . . .

No matter how much time on money you spend developing a clam tight contract with an offshore outsourcing provider you never want to have to consider international litigation or international arbitration for contract disputes."

But it's not just the risks, there are sound economic reasons not to offshore your Oracle development.


Offshoring:  The Low Cost Lie

The Outsourcing low cost lie describes the nightmare that offshoring has become for those companies who are unwise enough to entrust their Oracle systems to a foreign provider.

 Unsurprisingly, reducing IT costs is the primary driver behind outsourcing for 82% of companies in the U.S.  But, as Aberdeen continues,

- Nearly 50% of outsourced projects fail outright, or fail to meet expectations.

- 76% of companies said that vendor management effort and costs were much higher than expected.

- 30% reported ongoing issues with outsourcer management processes (e.g., inadequate governance and conflict resolution procedures).

- 51% reported that outsourcer was not performing to expectations.




 

 

Burleson is the American Team

Note: This Oracle documentation was created as a support and Oracle training reference for use by our DBA performance tuning consulting professionals.  Feel free to ask questions on our Oracle forum.

Verify experience! Anyone considering using the services of an Oracle support expert should independently investigate their credentials and experience, and not rely on advertisements and self-proclaimed expertise. All legitimate Oracle experts publish their Oracle qualifications.

Errata?  Oracle technology is changing and we strive to update our BC Oracle support information.  If you find an error or have a suggestion for improving our content, we would appreciate your feedback.  Just  e-mail:  and include the URL for the page.


                    









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