« Did Google AJAX break SEO for FireFox? The answer is NO! | Main | Google Analytics. Should you use it? »
Outsourcing Effectively: Everything you need to know!
By Shalom Issenberg | March 26, 2009
Outsourcing is a skill. Over the years I have outsourced more projects than I can remember. Even to this day, certain tasks or pieces of projects I handle are sometimes outsourced in order to save time. However, I have found that outsourcing is not always cost effective. This may be more of a reality for me because I am located in Israel. The cost of labor is cheaper here, even though we employ native English speakers like me who made “Aliyah” (immigration from North America to Israel). For companies in North America outsourcing to places like India or Eastern Europe may appear like a dream come true. Less than one quarter the cost, highly skilled, and able to communicate… what’s the downside? Managing an outsource company can be difficult, cost over time, and cost relative to quality become the challenges. Outsourcing when done correctly can be valuable, but it’s not usually simple.
Some common problems:
- Project not completed on time: Understanding the process as much as the company you outsource to will help you to plan timing accurately. If your project requirements are not fully understood, time estimations will not be accurate. Time is money! A late delivery can cost more than the money you saved on development costs.
- Project not completed: If a project is priced too low or time to complete is estimated inaccurately, outsource providers will give up on the project before completing it, as it becomes less profitable for them to continue. Lack of communication in responding to questions throughout the process can also drag the project out and cause the developers to loose interest. Some “less professional” outsource companies may also take on too many projects at once and not devote enough time to your project causing it to fall between the cracks. If you get stuck with a project that’s half done, you are most likely going to have to start from the beginning. All the time and money you spent in vested in an incomplete project becomes a meaningless expense.
- Poor results / expectation not met: The same function can be scripted in many different ways. When you outsource you should know what the best way to do it is, and then make sure it’s done that way. This does not mean that you need to know how to do it yourself; it simply means that you should have a general understanding of what to look for in a “good” product. You pay for what you get – sometimes you pay more!
Ways to succeed at outsourcing:
- Hire the right professionals. I recommend getting references from other professionals you trust and know. Elance and other outsourcing sites have rating systems, but these systems can be easily manipulated; be very careful.
- Define requirements and provide great detail. There is no such thing as too much information. Communicate clearly, through email, IM and telephone (not just one). Make sure all details are understood. Draw pictures along with written instructions to help developers visualize your sometimes “subjective vision”.
- Understand your project and the process to develop it before outsourcing. This will help in estimating time and cost.
- Be a fair employer. Don’t underpay your outsource company, and don’t put unrealistic time expectations on them. Your outsource company has to be profitable in order to be successful. Limiting them in terms of money or timing will only fall on you in the end.
- Divide your project into parts and develop in stages. Payments should follow these stages (milestones).
- Agree to business terms where the bulk of payment for your project is to be transfer upon completion. Money is the motivator!
- Be active! Be there to answer questions and provide feedback along the way. Be in constant communication. Don’t be surprised that your developer stopped paying attention to your project if you don’t respond to his emails for three days.
- Build a healthy “vendor – client” relationship that works well for both you and the outsource professionals you work with. Be respectful and appreciative, but check everything, and ensure quality.
… and good luck!
Topics: outsourcing | No Comments »
Comments are closed.