Software Sweatshop

This is an excerpt from a white paper I wrote about mistakes companies make when they go offshore called "Offshore Outsourcing: 5 Lessons Your Peers Learned the Hard Way"

 Lesson #2: "What Did He Just Say?"

“I’ve been burned by offshore firms and have the scars to prove it.”
CEO of Government Software Vendor

Unfortunately many offshore engagements result in failure. This is a result of unrealistic expectations and mismanaged communication. One client hired an Indian vendor and later pulled the project in favor of a Chinese one. The result was a team of engineers who hardly spoke English; a real project killer.

The most important thing in an offshore relationship is to dedicate someone at yours and the vendors end to keep track of project progress. A native language speaking person who also speaks fluent English managing the operation from abroad is indispensable to distributed software development. You can't hire Chinese engineers who speak marginal English and expect the project to go well unless you have a fluent Chinese person on the ground or in the United States with tight relationships with the engineers.

It all depends on the scope of the project; if you're just doing a simple web site, sure, hire someone in China with no supervision. If you're outsourcing an entire engineering team for a software product that will be built over the course of a year, you need to be much more careful. Make the decision to dedicate someone on your side to keep the offshore team on track and demand the same from them. Like any relationship, a little investment and communication from both sides will lead to long-term success.

This is an excerpt from a white paper I wrote about mistakes companies make when they go offshore called "Offshore Outsourcing: 5 Lessons Your Peers Learned the Hard Way"

Lesson #1: Look for Someone You Can Grow With 

“I’m looking for someone I can grow with.”

You’re a small company with a killer idea that’s going to change the world. You’ve decided to work with an offshore vendor but don’t know where to start. One client we worked with found an excellent vendor to do his core product development in India. Things were great for a while until the Indian vendor started growing. All of a sudden, the client became a small fish in a big pond; quality slipped, he didn’t get the attention he needed to keep his company thriving... and the rest was history.

When looking for an offshore vendor, look for someone you can grow with. With an insatiable appetite for “mega-deals”, most of the large vendors will shy away from SMB’s seeking to outsource. Work with a firm for whom you represent a significant portion of business. This will ensure that your project doesn’t fall through the cracks in favor of bigger clients. Make sure that their growth strategy falls in line with your own as well. For example, with the incredible growth of the Indian IT market, companies are growing organically and via acquisitions. A vendor with a growth strategy focused on acquisition might lose track of the subtleties of your particular projects.

Your best bet is to look for a company that matches your corporate culture and is looking to grow with you. The real value in offshore software development is nurturing a team that can handle your core development challenges, allowing you to focus on gaining market share and coming out with great new products.

This is an excerpt from a white paper I wrote about mistakes companies make when they go offshore called "Offshore Outsourcing: 5 Lessons Your Peers Learned the Hard Way"

“Do not learn from your mistakes; learn from the mistakes of others so that you do not make any.”
Sean Karsten

No doubt, offshore software development has made its mark in the industry and it’s safe to say that it’s here to stay. It is estimated that nearly 85% of the worlds top companies have an offshore strategy; so you’re probably thinking, “Isn’t it time I went offshore?” If you’re already offshore, you’re probably thinking of ways to diversify and improve your offshore strategy.
Whether you make websites for non-profits or sell complex financial software, you’re faced with the critical decision of outsourcing parts of your software development. While outsourcing development will allow you to funnel precious time and money into sales and innovation, it’s important to make a sober decision before jumping on the offshore bandwagon. The large companies that paved the offshore trail haven’t done so without failed engagements, breached contracts, and a little bit of resentment on both sides. As small and medium sized businesses prepare to make the offshore leap, it will serve you well to learn from the mistakes of your less fortunate peers.