Original URL: http://www.regdeveloper.co.uk/2006/01/05/outsourcing_offshore_development/
Comment Sure it’s all the rage, but is the outsourcing of web and software application development all that it’s cracked up to be?
Outsourcing is a subject of wonder, disdain, and even ignorance. I have a fairly unique position in that I have been a promoter of technology/development outsourcing for more than eight years. Back during the rising internet bubble, I felt it was highway robbery that a developer or designer could charge $100, $200, or even $500 an hour for something that used to be done for an average wage. At the time I was living in the Czech Republic, and you could have had a Cisco CCNA engineer for a laughable rate.
While enterprise-sized companies were not eager to jump on the bandwagon on a one-on-one basis, they did start turning to companies for unique projects, and eventually whole development streams. A company, even one on the other side of the world, has SLAs to be accounted for, people to phone and fax, and crucially, can be sued.
Outsourcing, though, is not the panacea for cutting costs that people would have you believe. Thanks to overzealous CTOs and CIOs, development teams around the globe are being shuttered at a rapid rate. Entire divisions of development and support staff are being handed their pink slips AND being told to train their replacements. Are people paying too much attention to the bottom line?
Back during the bubble, consultants and salesmen used to use the old FUD technique (http://en.wikipedia.org/wiki/FUD) to sell their software and kit. And it worked, just look at Sun and Cisco, and to a certain degree the vast amount of unused or dark fiber (http://chronicle.com/free/v49/i27/27a02901.htm) in the US.
Now is no different. Outsourcing has a very clear business proposition: dramatically lower your production costs and ramp up whole teams (and vice versa) at the drop of a hat. For the amount of money you pay, hell, do three projects/versions in one fell swoop.
It almost sounds too good to be true. Which, of course, means it is.
Yes, it is very nice that you are now paying $14 an hour for a Java developer. But what other costs are you incurring that you may not be able to quantify?
Here are my tips and tricks for ensuring your offshore project goes smoothly.
Don’t get me wrong, I'm a personal and professional proponent of outsourcing/offshoring. But running technology projects is hard enough without separating yourself from your team by 1,000s of miles. The pain comes from incorrect or unrealistic expectations from the customers, which can be compounded by an uncommunicative vendor.
At the end of the day, offshoring works and works well when both parties strive to work like they are part of the same team.®
Geoffrey McCaleb writes content management systems for a living. His blog lives here (http://www.idiotabroad.com).
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