Should You Outsource?
Recent trends in software
development market show that it is no longer the most
efficient way to work onshore. Competition is too high and in
some particular cases, US or European IT people even go farming
rather than admit the situation and adapt themselves. This
article is mainly for those who are going to stay straight in
the industry whatever surprises it keeps bringing.
International division of labour has done its work. So nowadays,
if you ask anybody about the regions he associates with
IT-industry, you'll get quite a short list: India, China,
Russia, Eastern Europe. No wonder, historically these regions
had the most efficient technically oriented education. In
addition to lower cost of labour in the East, that is their main
selling point, which determines their competitive strength.
As a logical sequence, almost each leading company engaged in IT
sphere, whether publicly or secretly, outsources a part of its
current work to third parties, often offshore. No
wonder that Indian and other offshore software
development companies prosper.
So what are the key factors that make companies outsource?
1. Cost of labour is often several times less than onshore.
2. There is no need to maintain the whole technical
infrastructure
3. Company can concentrate mainly on marketing tasks
Although that sounds good and promises several times bigger
profits, incautious outsourcing can be
a trap for any company. Don't forget that you entrust your
reputation to a company that is thousands miles away. Hence, if
you have made a decision to outsource a part or the whole
project to some company, you should take into consideration five
simple tips.
Make Proper Research The simplest way to find offshore software
development companies is to try search engine or
relative online directories. However, there is no guarantee that
under inspirational promises any website has, you won't find
cheaters. Spend several hours and try to find the most info
about the companies you have selected. Search engines should be
your best friend in these efforts.
Consult Alliances and Associations Almost each country where IT
industry is well developed has national alliances of software
development companies. These pools of developers can become your
first step in search for an outsourcing
company.
Communicate Carefully When you have decided to contact several,
as you think, most reliable companies, you shouldn't provide
them with complete info regarding your project at once. Keep a
little intrigue and give the info partially. That will make you
aware about professionalism of companies' project managers as
well as about their communication policy. Communication is what
you will appreciate during the whole project's development.
Therefore, it is better to find out whether they are
communicative enough before you sign the contract.
Ask for References/Samples Although offshore
developers cannot disclosure their recent contracts,
anyway, they have several clients that can provide you with
references whether they are bad or good. If there are no
references at all, ask for some software the company has
developed. See and try each example of their work you can. That
will make you aware about the quality of their services.
Phone or Visit Them The best way to test the company, which you
would like to outsource to, is contact them directly. Emails are
good, but you can find out more info about the possible partners
if you phone them. At least you will know about their command of
English (don't forget, you are going to outsource abroad) and
their real interest. Additionally, you can make them relax a
little, so they will be less defended against your research of
true situation. If you visit them personally you'll see exactly
who and where will work for you. At least, if the company
doesn't mind you visit them, that can mean that they are open
enough for collaboration and they have provided you with more or
less true info.
If you can do at least three of these five steps, there will be
little chances for you to be cheated by an unreliable company
thousands miles away. You'll be able to experience that kind of
wise outsourcing that
can give you required competitive ability. Each time you are
going to give some project for offshore
development, take into account that you should be an
initiator and wise decisions maker. Research, consult, and
communicate. That's the motto of any company that is successful
in outsourcing.
It's not too complicated, is it?