Questions
How do I know if outsourcing is right for us?
The economics of outsourcing are not as straightforward as the comparison of labor rates may suggests. We know first-hand the horror stories of being stuck in a never-ending development nightmare, where we were told one thing but constantly got another or worse not told anything at all when deadlines came and went. At iTACCESS we know the pitfalls of outsourcing and will work with you to ensure that your project is suitable for outsourcing and that you can properly maximize the value of this overseas workforce.
Are all projects suitable for outsourcing?
At iTACCESS we don’t think all projects or situations are suitable for outsourcing. Even the idea of it being cheaper is not always the case and there can be tax implications that people are not aware exist. There are many times where it makes more sense to hire locally. Unlike sugar or rice, not all developers are equal, so it can be difficult to compare. Furthermore, you have to know how to work with an outsourced team. This can be a learning curve for both small and big firms that do not have the experience.
Is it faster to have more developers on a project?
Adding more people isn’t always better. For example, you are late on your release date, so you add cheaper offshore resources to meet the deadline. Unfortunately, there is a guy named Fred Brooks who said famously that adding resources to a late project will make it later or, as he put it in his book, “Nine women can’t make a baby in one month.” Even when a project is not late, adding more people does not always mean more value. With the complexities of communication, a larger team moves more slowly, sometimes significantly so, and productivity is consequently lost. Your investment may buy you more developers if you outsource, but not necessarily more value in the end. It is crucial that you give enough time for these arrangements to work out and there is often little value in using an outsourced team under a rushed situation. We at iTACCESS recommend giving extra time buffers when outsourcing and parceling out projects that can be done and worked on fairly autonomously. Integrating teams must be done in a structured systematic way and should not be rushed. Good work and working relationships takes time, so we don’t recommend using outsourcing to put out your fires.
Is outsourcing really cheaper?
First of all, are we comparing things accurately? Outsourcing costs may be $20 per hour for a developer, but how much value are you getting in that hour? You may not be getting strong people on your team, instead only Jr. programmers with questionable skill levels. What experience do they have? One experienced $100 per hour in-house developer may well produce more value for you than five or even more junior $20 per hour people at the wrong outsourcing firm. And just because the outsource company has a lot of great people working for them and a large client list, it doesn’t mean you are going to get those people working on your project. That is why we always get to know our teams and understand their qualifications and weaknesses before committing them to a project. We want to make sure the team we hire is the right team that can deliver value hour for hour day after day.
Will outsourcing save us time?
You will need to spend time transferring knowledge to an external team, so the project scope and cost savings better be worth this time. Initially, the outsourced team doesn’t know your product, they don’t know your processes, and you haven’t worked together before. Therefore, it can take time on some longer-term projects or employee leasing arrangements before you can realize the true value. At iTACCESS we understand this complexity and can help our clients make the right decision, favoring long-term mutually beneficial partnerships rather than one-off deals that don’t meet expectations.
What is the risk of failure?
Yes you always should consider the risk of failure. It is true many outsourcing projects can be a nightmare or even fail. They may have to be abandoned completely with the work being brought back in-house at additional cost, or they may fall radically short in terms of the functionality and business value they deliver. Negotiating with and working with an unknown entity overseas is a risk. That is why we put our boots on the ground and our money where our mouths are. We invest in our development teams on a face-to-face basis. Working with our partners doesn’t completely mitigate the risk of failure, but it greatly reduces it. We have worked with and know the teams and are on the ground in the locations, attending management meetings, so you can share in our success by using our network and experience.
