What do you look in a JV or Outsource partner? Technological advances/cost effectiveness/any other?
What is the top priority that you give when tie-up with a JV or outsource partner? Do you give priority for a technologically advanced company or cost effectiveness or geographic/political conditions or any other factor? If you can narrow down to just ONE crucial deciding factor in your view, please do share.
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Vinod, I would look in different things wether it is a JV or an outsource partner. I guess complementarity is important in a JV : strength and weakness of both companies should be looked at very closely to "fill the gap", while outsourcing will be more targeting cost-killing. An outsourcer have a predefined mission as a provider and its profile is to fit short and medium term requirements.
JV = complementarity - Outsourcer = cost/service quality.
Hope this answer fit your question.
That's right Antoine. Depends on what each company looks out for based on priority. But in many instances outsourcing has become a headache for client companies. This could be due to many factors like language misunderstanding, timezone delays or pure lack of quality. Cost is definitely a factor for outsourcing but I do not think it should affect the quality and delivery standards.
JV can be complimentary, to utilize the involved partner's strengths and negating the weakness. We have an amazing JV with an Austrian IT company and even though we did it as a BOT model and the time to transfer is long passed, they wish to stick on to our partnership. Its more of a marriage of sorts. If it clicks, it can be amazing.