Event planning is the process of planning a festival, ceremony, competition, party, concert,

or convention. Event planning includes budgeting, establishing dates and alternate dates, selecting and
reserving the event site, acquiring permits (alcohol permits, insurance licenses, etc), and coordinating
transportation and parking. Event planning also includes some or all of the following, depending on the
event: developing a theme or motif for the event, arranging for speakers and alternate speakers,
coordinating location support (such as electricity and other utilities), arranging decor, tables, chairs, tents,
event support and security, catering, police, fire, portable toilets, parking, signage, emergency plans,
health care professionals and aid stations, and cleanup.

Who hires event planners?

 Banking/ Investment groups
 Car Dealerships
 Casinos
 Caterers
 Chambers of Commerce
 Cities
 Coalitions
 Convention Centers
 Convention & Visitors Bureaus
 Country Clubs
 Cruise Lines
 Department Stores
 Florists
 Hospitals
 Hotels / Resorts
 Museums
 Nonprofit Organizations
 Pharmaceutical Companies
 Private Schools
 Professional Associations
 PR Firms
 Shopping Malls
 Theme Parks
 Tourism Organizations
 Trade Associations
 Universities
Event

1. Occurrence happening at a determinable time and place, with or without the participation of
human agents. It may be a part of a chain of occurrences as an effect of a preceding occurrence and as
the cause of a succeeding occurrence.

2. Arrival of a significant point in time. In project management, an event marks the point in time when
a task is completed. See also events.

Defination -
legal term referring to using the limits of multiple policies to one claim or event. This can be done if
more than one policy covers a loss.

Event management is the application of project management to the creation and development
of festivals, events and conferences.

Event management involves studying the intricacies of the brand, identifying the target audience,
devising the event concept, planning the logistics and coordinating the technical aspects before actually
launching the event. Post-event analysis and ensuring a return on investment have become significant
drivers for the event industry.[1]

The recent growth of festivals and events as an industry around the world means that the management
can no longer be ad hoc. Events and festivals, such as theAsian Games, have a large impact on their
communities and, in some cases, the whole country.

The industry now includes events of all sizes from the Olympics down to a breakfast meeting for ten
business people. Many industries, charitable organizations, and interest groups will hold events of some
size in order to market themselves, build business relationships, raise money or celebrate.

Key Points on Planning

• Successful planning ensures that an

organization/event remains competitive.

• It creates ownership of strategies and

communicates this to the organization

• It consists of establishing where an

organisation is at present, where it is best

placed to go in the future, and the

strategies and tactics needed to achieve

that position.

Benefits of Planning

• It enables managers to detect and solve

problems

• Alternative strategies are highlighted for

consideration

• Staff responsibilities are clarified

• Uncertainty about the future is reduced, thus

minimizing resistance to change.

Objectives for Events

 Specific to the event

 Measurable in statistical terms

 Achievable or Agreed by those involved

 Realistic or Relevant to the resources available

 Timed around the event schedule

5 W’s

Why? – develop the purpose for your program before you get started

Who? – consider: who is “hosting” or implementing, who is the audience, who will benefit/be served,
target

#’s

What? – be creative with your ideas/concepts, be practical about what can be reasonably implemented,

consider issues of liability, security

When? – consider time appropriate for hosts/audience, and always check for “competing” events
Hints: check http://calendar.ucsd.edu, EMS system, Facebook events, etc.

Where? – location appropriate to event, size of audience, specs; consider a walk-through during your
Planning

Planning your “Program” - How

An event always has four major components – make sure the event planner you are consulting has
considered

the following:

1. Program

2. Logistics

3. Budget

4. Marketing

Tips for Throwing a Successful Event

1. Plan ahead. We can't say this enough! You should contact an event planner and caterer 3 to 12

months ahead of time for any sizable event, such as a banquet, dance, conference, concert, or other

event where more than 100 people will be attending. Do this before you send out invitations or

advertisements.

2. Be prepared if your event is outside. Consider renting a rain site or tent for bad weather. Don't

forget you will also need garbage cans, and possibly fencing, electricity, heaters, extra lighting, or

extra ice.

3. Read contracts carefully, even the boring parts. It will save you money and headaches down the

road. The contract is what the facility or business will provide for you; if you don't see something on

the contract, you won't see it at the event. It also states what your obligations are, which are very

important to know.

4. Find out the maximum capacity of the room for the way you want it set before you invite
people. Buffets, stages, award tables, etc. all take space away from the room, which will affect how

many guests the room can accommodate.

5. If money is tight, seek donations or co-sponsorship. Some companies, such as florists and

caterers, may be willing to donate their product in exchange for advertising. Look up alumni

associated with your organization and ask for their help, or see if another student organization or

academic department would co-sponsor your event. If you do co-sponsor an event, make sure your

facility contact knows who is co-sponsoring and who is paying for the event.

6. Negotiate with caterers. Most will customize menus and many will negotiate prices. They can do

more for you if you give them a budget to work with. Make sure you are clear when discussing prices;

a "per person" price is usually just for food and does not include delivery, service, china, linen, or

decoration.

7. Think about paying for extras that will make your event a success. Rental of items like dry

erase boards, professional a/v or sound equipment, or extra servers could make a big difference in the

success of your event. Linen, decorations, and extra lighting may go far in giving you the ambiance

you want. If hosting your event in the Ohio Union, ask your Event Planner for more details.

8. Take advantage of what the Ohio Union has to offer. We offer many free things, and can procure

things for you that you may not have thought of, such as parking garage passes, pre-paid cards for

your guests to use in our food court, valet parking, and laptop computers.

9. Don’t Use Acronyms. Due to the large number of student organizations at Ohio State University,

sometimes several groups will have the same acronyms. For record keeping purposes, please use the

full name of the organization when making reservations and marketing your event.

10. Ask yourself these common questions. For every event that occurs, some basic information is

required. Think ahead and be prepared to answer these questions:

• Date of event

• Event Name
• Purpose of Event

• Event Start Time and End Time (and if additional prep time is needed longer than ½ hr.)

• Number of People Attending

• Room Preference

• Name, Preferred Billing Address & Telephone of the Contact Person

• Event Type (meeting, banquet, special event, etc.)

• Equipment, including tables, chairs, and Audio Visual needs

• If the event involves food and/or alcohol

• Payment information Frequently Asked Questions about Events i

Audience Analysis

Understanding one's audience is one of the most important elements of effective communication.
Audience analysis can help you gain valuable insight about your readers, which can help you to choose
and develop a relevant, meaningful topic. It can also help you to create a writing plan that is tailored
effectively to your reading audience, with appropriate tone, style, language and content.

There are three main areas to consider when analyzing your audience: demographics, dispositions and
knowledge of the topic. For each of these areas, there are a set of questions to answer which will help
stimulate your thinking about your audience. In addition to the questions below, you should consider
how each of these factors (age, socio-economic status, etc.) affect your readers' attitudes, expectations
and opinions about you and your topic.

Demographic Analysis

Is my reading audience homogeneous or heterogeneous? If homogeneous, how are the readers alike?
What do they have in common? If heterogeneous, how are the readers different from one another?
What do readers have in common despite their differences?

What is the average age of my readers? What range of ages is represented?

In terms of socio-economic status, how would I describe my reading audience? Where do they fit in
society's social and economic status?

What occupations are represented in my reading audience?

What are my readers' political and religious affiliations?

What ethic, racial and cultural groups are represented in my reading audience?

What is my role in relationship to my reading audience? Are we status equals or re we of mixed status?

Disposition Analysis

What might my reading audience expect from this document?

What might I expect about my readers' attitudes toward me (the writer) and my topic?

What concerns or problems do my readers have?

What interests and goals do my readers have?

What will motivate my readers? What types of needs do they have?

What biases or preconceived ideas might my readers have about me and my topic?

Knowledge Analysis

How much does my reading audience already know about my topic? What, specifically, do my readers
already know about the topic?

What can I inform my readers about that they do not already know? What new information would my
readers benefit from? How could they use this new information?

At what point of sophistication will I be "talking over the heads" of my readers because my information
is too complex? At what point of sophistication will I be "insulting the intelligence" of my readers
because my information is too simplistic?

What questions might my readers have about my topic?

Conducting the Audience Analysis

Conduct either a formal -- based on surveys and questionnaires -- or an informal -- based on discussions
-- analysis to create an audience profile.

Formal Audience Analysis

During formal analysis:

Conduct surveys,

Use structured interviews,

Gather questionnaires.
Some organizations often do formal analyses as part of marketing planning.

Informal Audience Analysis

Gather information about the audience by talking with people who will read the final document. For
example, when writing

Product documentation, talk to people who use the product (or a similar product).

An article for a periodical or journal, talk to people who read that publication. Especially talk to those
who have published in that or similar periodicals.

Interview marketing, development, and other staff. These specialists have market research results, as
well as access to customers.

When interviewing marketing and development staff,

Ask open-ended questions and follow up on incomplete answers.

Ask about the users' backgrounds: how they work, why they will read the document, and what they
need from it.

Attend meetings at which the product or service will be discussed.

Find out about the audience by reading

Notes and reports by product trainers or maintenance personnel who have had contact with the
audience,

Previous issues of a specialized periodical.

Identifying Audience Characteristics

Identify the audience characteristics and remember them while writing. Before you begin writing
consider such important audience characteristics as

Educational and professional background,

Knowledge and experience levels,

English-language ability,
Reading situation.

Educational Background

Ask for information about educational background to assess the audience's reading ability and its
willingness to read. A college-educated audience should be able to read more difficult texts than a high
school- or grade school-educated audience.

In most cases, simple language - common words or technical terms appropriate to a particular
readership - and a direct style - typical sentences without unusual structures - offer the best approach
for all audiences.

Professional Background

Know the basic requirements of the jobs the readers perform. Do not confuse a job title with
professional functions. For example, readers of technical and science writing could perform many
professional roles at the same time:

Scientists can be doctors, engineers, programmers, or technicians.

Legislators can be judges or lawyers.

Any professional could be a manager.

Job functions can imply different levels of knowledge. Compare, for instance, the difference between a
design engineer's and a technician's knowledge of engineering theory.

Consider how a document will help readers do their jobs. Maintenance documents, for instance, must
have less text and, perhaps, more illustrations to help these readers complete their work quickly.

Knowledge and Experience Levels

Use professional and educational background to determine the audience's knowledge and experience
on a subject. Use this information to evaluate what readers know and what information they need.

Categorize readers as a single-level audience if they are members of a specific group. While it is difficult
to assign readers to such exclusive groups, a useful distinction can be novice, intermediate, and expert.

Novices have minimal knowledge or experience, and may even fear the product or subject. In reference
information they want basic concepts and procedures. In instructional materials, novices need to see
quick results; successful experiences reassure them.
Intermediate audiences have some knowledge or experience. For example, if a document shows how to
operate a drill press, an intermediate audience may have experience with similar equipment.

Experts are typically very knowledgeable. For example, an expert using software documentation may be
a programmer who uses many of the software's applications.

However, a document that describes not only a particular subject matter (such as chemistry), but also
the use of a particular tool (such as a computer) or technique (such as spectroscopy), complicates this
view of the single-level audience.

Categorize readers as a multiple-level audience if they include technical experts (programmers,

engineers, scientists) who are unfamiliar with certain tools or techniques. For example, the reader may
have general knowledge and experience with mathematics, physics, electronics, and spectrometry.
However, she may be an inexperienced computer user and may lack specific knowledge about emission
spectroscopy. A document that describes how to use a software package to obtain emission data, and
how to interpret that data using specialized mathematics, must address various levels of audience
knowledge and experience.

Consider a document's implied as well as explicit audiences. For example, a technical manual prepared
for novices may also be read by financial managers. This same manual may also have to support product
maintenance. Hidden audiences affect a document's organization and style. In the above example, for
instance, the document may have a benefits summary for sales purposes or provide a reference table
for expert readers.

English-Language Ability

Consider the audience's English-language ability. Many people employed in technical disciplines have
graduated from U.S. universities but come from other countries; English may be their second or even
third language.

Consider, too, that a second technical language may be quite different from a second conversational
language. The technical author has advantages over other writers, because technical English uses a small
subset of the English language.

Reading Context

Consider the physical and psychological conditions under which the audience reads the document:

A scientific article, for instance, may be read in a relaxed atmosphere at home or in an office.
A spreadsheet software tutorial may be read on the job, at the keyboard, while dealing with
interruptions.

A heavy-equipment maintenance manual may be read while repairing the equipment in the field.

Identifying Audience Objectives and Needs

Use audience objectives and needs to shape how you approach the document:

Objectives reflect what the audience wants to do after reading the document; for example, install a
videotape recorder.

Needs indicate questions the audience will have that the document should answer. Readers may not
even know they will ask these questions, but the writer must anticipate them--and supply answers.

Audience objectives may be long-term, short-term, personal, or job-related. They may or may not be
directly related to the document.

Note that most technical documentation is written for readers with job-related objectives. Identify those
objectives. Find out whether the audience will read the document to do a task, or to expand its
knowledge.

Addressing Diverse Audiences

To satisfy a diverse audience's needs, address both different experience levels and different goals.
Follow these general guidelines when writing for multiple audiences:

Rank goals in terms of the questions the document must answer first, second, third, etc.

Write for one audience group at a time, and indicate which group you are addressing. Expect that any
other audiences may need the same information.

Produce one document for all groups, or divide the information into more than one document.

Include navigation aids--tables of contents and lists of figures and tables, page headers and footers,
headings within the text, appendices, tab dividers, etc.--to make information easy to find.

Creating an Audience Profile

Use the audience characteristics, objectives, and needs to develop an audience profile, or of each
subgroup of a diverse audience. To create the profile:

Group related features in a written sketch of the typical reader,

For a diverse audience, do a profile for each kind of reader,

Form mental images of these composite people,

Get to know the profiles before writing anything,

Plan the document for typical readers and write to them,

Provide the kind of information and presentation the readers need to achieve their goals.

Event Venue Selection

Keep following things in mind while selecting a venue for your event:

1) Target Audience/Guest Size

This means the number of people you are expecting to attend your event.

Make sure that your venue can easily accommodate your expected target audience. Your venue should
not be too small or too large for your guests. If too small, then your guests will feel discomfort. If it is too
large then you will unnecessarily end up paying more for the venue.

Get firm indications whether guests plan to attend your event by sending R.S.V.P clearly printed on the
invitation.

The term R.S.V.P is a French acronym. Its meaning in English is 'Please Respond'. If R.S.V.P is printed on
the invitation then the invited guest is expected to tell the host whether or not he/she is attending the
event. Since many people don't understand the meaning of this term or don't bother to reply back, it is
advisable to individually call and ask your guests about there plan to attend the event. In this way you
can get quite accurate idea of the guest size which will help you in deciding food and beverage
quantities also.

2) Target Audience Status

If you target audience are rich people then your venue must be a five star hotel or resort and all the
services provided during the event must be of very high quality.

3) Target Audience Convenience

Select venue according to target audience convenience. Your venue should not be very far from the
place where majority of your target audience live. Your venue should have proper lighting and
ventilation. It should not be in a noisy or polluted area. It should be absolutely neat and clean and free
from any type of infestation.

4) Climatic Conditions

Keep Climatic conditions in mind while selecting a venue. If you are going to organize an event during
rainy season or during peak winter then selecting an open-aired venue is not a good idea. Always try to
organize indoor events if possible as there production cost is lesser than the outdoor events.

5) Venue History

Before hiring a venue check out the history of the venue. Find out how many events have been
organized in the venue so far. In this way you can find out whether or not venue and the staff there is
event friendly. This will help you immensely when you later organize event there as you will have to do
less amount of work in making the venue suitable for the event. If venue has noise ordinace problems in
the past like neigbours calling the cops to shut down the event, then it is not a good idea to organize
event there especially outdoor event.

6) Venue Services

Before hiring a venue check out the number of services provided by the venue like:

Parking facility
Make sure venue has its own parking space. It should be big enough to accommodate your target
audience's vehicles conveniently. If parking space is not adequate then look for other venue. Never
compromise on parking space especially if you are organizing event on a large scale.

Security Arrangements
Security of guests, service providers and target audience is a very important issue which should never be
neglected or compromised at any cost. Make sure that your venue has adequate number of fire
extinguishers, fire alarms, emergency escape routes, sprinkler system (a system consist of overhead
pipes designed to control or extinguish fires), security personals, handicap ramps, security cameras, first
aid kits and power backup (like generator, inverter, UPS). Your venue must have separate entrance and
exit gates and it should not be more than 30 minutes away from the nearest hospital. If your venue is at
a remote location then presence of doctor and ambulance is a must. Also make sure your mobile phone
properly works there. If your mobile phone network area is weak there or doesn't exist then you must
have some other modes of communication like satellite phone. For large scale events presence of fire
fighters, fire engine, police, paramedical team with ambulance is a must.

Venue Staff
Your venue must have adequate number of staff to serve your guests. Find out the ratio of servers to
guests. The venue staff must be friendly, helpful and courteous. It should be decently dressed. Give
special attention to there personal hygiene. Nobody likes to be served by someone who is stinking and
looks like a pirate of the 13th century. Ask you venue manager whether or not the staff is able and
willing to work overtime.

Restrictions
Every venue has some unsaid restrictions like photography and videography restrictions, alcohol
restrictions, music restrictions, dress code, decoration related restrictions (like you can not install your
own structure and lights for decoration or paste/paint anything on the venue's wall), advertising
restrictions (like you can not put a banner on the main gate of the venue) and other restrictions like
outside caterer is not allowed or outside security service is not allowed etc. Find out all these
restrictions before hiring a venue.

Additional Services
Some venue provides additional services like catering, floral decoration, fireworks, audio-visual aids;
Staging, Lighting, props, decor for event production; ticketing, reservation, transportation and sight
seeing tours for the guests; DJs, anchors, performers etc for event programs.

7) Venue Fees

Ask following questions from venue manager before hiring a venue:

Q1) What is the venue fee?

Does it include all other taxes? (Negotiate rental fee to ensure the best deal.)

Q2) What is included in the venue fee?

Is dance floor included in venue fee? Are table, chairs and linens included in the venue fee? Is security
and liability coverage included in the venue fees?

Q3) What is not included in the venue fee?

Q4) Is there any cost for parking?

Generally parking space is provided free of the cost by the venue but some venues may charge
separately for parking facility.

Q5) What is the price range for a seated/buffet lunch and dinner?

Q6) What are the Corkage fees?

i.e. fees to server liquor. Make sure that venue has the license to serve alcohol. Check the license for
expiration date.

Q7) What is the cost of sleeping rooms?

Q8) What is your cost per person and per food item?

Q9) What are your bartending and bar set up fees?

Q10) What are your fees and how do you charge for providing additional services?
Such as floral decoration, fireworks, audio-visual aids; staging, lighting, props, decor for event
production etc.

Q11) What modes of payments are available?

Q12) What are your payment, refund and cancellation policies?

8) Venue Inspection

If you will go as an event manager to a venue for inspection you will be shown the venue as an ideal
venue for organizing your event. So best way of inspecting a venue is to check-in there as an anonymous
guest, stay there for 2-3 days and deliberately use all the services provided by the venue.

Make sure Air Conditioners, fans, water tabs work properly, elevators are operational. There is adequate
lighting and ventilation. Check out for sanitation and infestation.

Find out how helpful, courteous and professional is the venue staff. Check out whether or not the venue
has a noise ordinance in the area where it is located? If yes? At what time is it enforced? E.g.: 10:00PM,
11:00PM. Check out whether or not security is provided in the parking lot and how is the law and order
situation in the area where the venue is located. Make sure that the venue suits the event theme.

9) Amount of Work Required

On the basis of venue history, services provided by the venue and venue's inspection determine how
much work is needed to be done to make the venue suitable for your event. Select a venue where lesser
amount of work is required to be done. Lesser the work, lesser will be the production cost of the event.

Components of a Contract:

I) Parties entering the agreement

II) Dates of event

 Be sure to take into account set-up and tear-down days as needed

 Double check your competitive calendar, holiday, etc.

III) Guest rooms – room block details

 Number of rooms required in your block (to include type of room) by night
 Room rate offered (negotiable)
  Reservation procedures that include: confirmation policy; guarantees, deposits,
check in & check out times; reservation procedures (negotiable)
 Room block and tracking reporting (negotiable)
 Sliding scale to manage room block
 Complimentary rooms based on room block (negotiable)
 Billing
 Room upgrades (negotiable)

IV) Food and beverage functions

 Date of functions and space required (negotiable)

 Set ups (negotiable)
 Price guarantees (negotiable)

V) Meeting Space

1. Space contracted with hours specified

2. Clause about adjustments of space provided by the venue
3. Room rental fee (negotiable)
4. Equipment (negotiable)
5. Other groups in-house (clause to add in if required)

VI) Legal language that includes:

 Compliance with local laws

 Cancellation policy for the event
 Deposit/billing details
 Accessibility
 Renovation/construction (clause to add in if not included in initial contract)
 Insurance
 Third party vendors
 Dispute resolution
 Signatures of authorized partie

RFP (The request for proposal)

The request for proposal (RFP) is a common business tool used to find the best vendor while
maximizing value and minimizing risk. Despite its importance and wide usage, many
professionals have lingering questions about the process. Luckily, we’re here to explore the RFP
meaning and process as well as RFP tips and tools.
In this blog, we’ll outline everything you need to know about requests for proposals. First, we’ll
start by answering basic questions. For example: What does RFP stand for? What does RFP
mean? And, what is an RFP? Then, we’ll define related terms and explore how RFPs work, who
uses them and when they should be used. Finally, we’ll explore how technology like an RFP
tool improves and complements the traditional RFP process.

RFP DEVELOPMENT CHECKLIST

The following are key elements in developing an RFP/Contract and requires your input:

1. Description of your UTMB Department (Optional): Describe operating environment; size and
volume, uniqueness, etc.

2. Project Overview/Objectives: Describes the nature of the project through which we convey to
the Vendors what we seek as Project outcomes; provides an opportunity for the Vendor to
understand our needs.

3. Evaluation - Selection Criteria: Indicate the factors your department would like to consider for
evaluation and award of the RFP [e.g., Cost; Project Schedule; Qualifications of Company and
Project Personnel; Work Statement (understanding the task); References and Experience in a
UTMB-like setting, Site Visit of other Facilities, etc.]

4. Specifications/Scope of Work:

4.1 Detail any specific requirements relating to the work or product(s); define your
department's role and the responsibilities of the Vendor.

4.2 Project Schedule: We can define the overall schedule or allow Vendor to define Project
Schedule and completion dates of key tasks.

4.3 Acceptance Criteria (define factors for accepting work and payment thereof).
 4.4 Warranty Requirements

4.5 Support Services (i.e., training and implementation assistance)

4.6 Designation of UTMB Project Coordinator and the role of project coordinator (i.e.,
scheduling, work approval, etc.)

4.7 UTMB Responsibilities (i.e., provide Vendor on-site office space, telephone, PC; review
of Vendors work plans and submittal of approvals/comments within seven (7) days)

5. Payment/Rate Schedule:

5.1 UTMB pays only upon acceptance (i.e., completion of a task, acceptance of product(s),
or entire project)

5.2 Rates can be set up as lump sum/fixed price for entire project or per task.

5.3 Define unit pricing for consulting/professional fees including estimated hours; unit cost
for equipment/materials, and not to exceed cost for expenses; i.e., per diem, travel, etc.

6. Questionnaire: Develop a list of questions which will enable you to select a Vendor by
determining if: a) Vendor is qualified; b) the Vendor understands the project; and c) Vendor is
capable of satisfactorily performing all requirements.

7. Vendor Source List: Develop a list of Vendors that you would like to send to the RFP to. This will
be in addition to the Vendors on file, for your type of project, with Logistics/Acquisition.
 Top 5 Reasons company deciding to outsource

The decision to outsource is a strategic one and not deciding to outsource is a tactical choice. In the short run, doing
it yourself is easier and faster which begs the question, ‘Why consider outsourcing?’ The top 5 reasons are:

1. Reduce and control operating costs - Small business owners need to "think big." Just like Fortune 50 companies,
the small business owner needs to identify his/her strengths and then find someone else to do everything else -
outsource it.
2. Improve company focus - By outsourcing non-core functions, a small business owner can focus on growing the
company.
3. Gain access to world-class capabilities - For small start-up businesses seeking investors and partners, showing
that the company outsources its financial functions to a professional, bonded, insured service provider firm with
secure technology will help potential investors realize the start-up owner is running the business well.
4. Free internal resources for other purposes - Business owners who are great at their business but realize they are
weak at finances or are too busy and don't have time to do the books or have tried but failed and as a result have a
financial mess to clean up.
5. Resources are not available internally - Knowing what the finances really are at a given moment gives a small
business owner much more capability, not only for real-time decision making, but also for accurate decision-making
and confidence in the decisions.
Disadvantages of outsourcing to India

 Licensing and copyright issues. Outsourced projects may be copied and

sold again to one of your competitors. This leads to serious issues with
regards to licensing and copyright.
 Time lost managing project. Any financial gain must be weighed against
the time spent having to manage the project from half way across the
world. Communicating to the client and then having to translate
requirements to the Indian programmers and back and forth. Paying for
airfares, accommodation, visas, etc need to be factored in.
 Poorer standard of work resulting from poor communication and cultural
differences. Financial losses that result from competitor's having better
systems.
 Political instability - It is a fact that India is not as politically stable as
Australia. Assassinations can lead to street unrest that can shut businesses
down for days.
 Lack of quality control. Outsourcing a project requires a great deal of
trust because the quality of programming varies considerably. Most
problems do not surface till later on, and unless a project is written well, it is
expensive to fix. Patch after patch is applied to dodgy programming.
  Customer service. Pushy sales people are always a sign that something
is not quite right. If in presales, Indian developers call and email
persistently, refuse to accept 'no' for an answer and continue to speak
about how great their company and developers are, then what happens in
the middle of a project, when something needs to be fixed, will they listen
then? Establishing a relationship, is more than - 'we can get you a better
price' - it is about working together to achieve a common goal and this
means being able to listen and provide thoughtful answers, not just sales
rhetoric.

Why Outsourcing Is Important For India?

by BPO Voice | Outsourcing |

India remains one of the most favored outsourcing destinations in the world. The
western countries are increasingly willing to outsource jobs to countries like India,
Indonesia, China and Bulgaria. The reasons are very clear, companies get cost
benefits and control over the project. But the most important question is: Why
India? And How India managed to top the list of outsourcing locations for western
giants? Actually, India offers quality, a better infrastructure, liberal policies for
foreign investments and huge work force at low prices. Obviously, the country
also enjoys the benefits of these outsourced projects. Let’s find out how:
Employment
India is the world’s second most populated country but still in the developing
stage. Unemployment is one of the pivotal reasons for widespread poverty in the
country. However, the education system is yet very strong, producing thousands
of qualified professionals every year. The country is not able to produce same
amount of jobs every year though, so outsourcing helps in creating jobs. Without
these outsourcing projects, the employment scenario would have been worse.
Foreign Currency
Foreign currency reserves are very important for all countries and the different
projects from around the world in India ensure that the supplies of various
currencies from these countries keep flowing. United States, United Kingdom and
Australia are the heavyweights who like to outsource jobs in India and help in
prospering the economy.
Infrastructure Development
India has seen a major growth in the infrastructure development in last decade
and foreign investments is one of the reasons for it, directly and indirectly too.
While outsourcing jobs to a country, foreign companies make sure that the
workforce has necessary equipments and infrastructure facilities to meet the
needs of competitive market. Therefore, they see to it that money is pumped for
infrastructure development. Moreover, Indian Government has also worked a lot
on the infrastructure sector to allure more and more companies for investing in
the country.
Quality and Knowledge
Undeniably, western countries are far more ahead of developing countries in
terms of managing and executing things. Their overall approach, knowledge and
process of handling projects is very different and outsourcing serves as an
amazing platform for workforce in India to get to learn these things. There are
many young talented professionals in India who are looking for better
opportunities and while working on such outsourced projects, they get to interact
and learn from these foreign clients. This results to an overall quality growth of
the workforce in India.
Per capita Income
Basically employees are not worried about foreign currency reserves or
infrastructure growth. It may sound like a narrower approach but people are more
worried about their salaries than anything else. Outsourcing in India has actually
increased the bar for salary packages. And this is a very good thing, people
today are being paid much more than what they were used to. This has
increased the buying power of people increasing the standard of living in the
country.
Therefore, it is not the outsourcing companies who benefit through the process
as the advantages are mutual. Both the economy of India and workforce enjoys
the benefits of such outsourced projects making it the most favored destination
through quality and cost benefits.