Hi Dp members: With my 100th post; i m here to share some of my thoughts about outsourcing:.... In every spare of every day life, the benefits of outsourcing of course are variable, dependent upon the nature and situation of the organization. However, the following is a list of common reasons why outsourcing is undertaken: • Lower costs due to economies of scale • Ability to concentrate on core functions • Greater flexibility and ability to define the requisite service more readily • Specific supplier benefits. For example, better security, continuity, etc. • Higher quality service due to focus of the supplier • Improved internal management disciplines resulting from the exercise itself • Less dependency upon internal resources • Control of budget • Faster setup of the function or service • Lower ongoing investment required in internal infrastructure • Greater ability to control delivery dates (eg: via penalty clauses) • Lack of internal expertise • Increase flexibility to meet changing business conditions • Purchase of industry best practice • Improve risk management • Acquire innovative ideas • Increase commitment and energy in non core areas • Improve credibility and image by associating with superior providers • Generate cash by transferring assets to the provider • Gain market access and business opportunities through the supplier’s network • Turn fixed costs into variable costs OUTSOURCING MEASUREMENT Despite the size of this list, every scenario is different. There may well be equally compelling arguments against any sort of outsourcing arrangement. It is therefore important that ALL the issues are considered before embarking upon the outsourcing course. This assessment should take into account all factors, both local and generic.
Well, while that list sounds good and while it's true that outsourcing may provide all the benefits you mentioned - this is not always the case. For example, "Higher quality service due to focus of the supplier" is not guaranteed, although if the outsourced company has a good history (or you've worked with them earlier) you can give a better idea about the quality. I've worked with various people from various countries, and "outsourcing" as a concept doesn't automatically guarantee anything. Sometimes I've got great work from Russia, sometimes there have been problems. Sometimes I got great stuff from India, sometimes it took more time. Sometimes US guys have greatly helped me, sometimes they've just vanished. By referring to my earlier example: sometimes I've wasted my own time trying to manage the external team or people (who couldn't deliver what was promised) and while I might not paid them anything, my time is the most precious asset I have - and there are no 100% guarantees that the costs would be lower. Depending on the project, it might be the case that outsourced company brings the necessary software in half the time that it would have taken for internal team to do. But the need to learn and update the software might be 2-3 times more complex as the internal team has no clear idea how it works, and training and learning might take time & cost actually more. Generally I do accept the ideas you mentioned, but I wouldn't say outsourcing automatically guarantees these.
finding a good outsourcing company is hard to come by , i have hired loads of people but teaching them what i need done is more of a pain in the long run, at least if i make mistakes, i can blame myself.
I've looked at out sourcing some web programming but for me it always comes back are they capable of producing as good of code as I do or someone in my area? Several years ago I did some freelance programming on the side and I spent the majority of my time cleaning up messes created by people who were getting paid $3/hr. So I'm wondering has anything changed recently or are there any good ones out there that can produce good code? I've looked at places offering programmers for 8 hours a day 6 days a week for $800/month. Maybe I'm just dreaming of getting good quality at such a cheap price?
It depends. Some people can provide quality code, while others are bringing the mess you mentioned. I've used outsourcing for art - and there it has worked well (you can see right away what you are paying for, and there's no need to update the pics you know )
Yeah we recently did that for our new site I think the guy did a great job for the price that was paid. If I had got someone local it would have been probably 10x as much. If I just got someone online from north america it probably would have been 3x as much. But with web site design and art work you can see results and that's all that matters. There is no concept of maintaining the art or anything like that. Now a programmer that you want to work full time for you for several months these companies don't give you a whole lot of information. It's all the same certification here went to school in this country. Doesn't tell you a whole lot
Yep - and it's also easy to check out how good art he can do (like simply check portfolios). Try that with programming... Yep.