Top 3 Reasons Why I Don’t Like Outsourcing IT Jobs
March 16, 2008 – 3:17 pmOne of the main reasons we (the USA) hire off-shore developers is to save money, but how much money is really being saved though? Where are we actually saving? Is it in the budget, the time, amount human resources, or office space?
Over the past three years, I have officially off-shored some projects in hopes to save just that; money. I sent one small and one large project to India. I worked on two small applications with a team in Croatia. And currently, I work on various projects with contractors and teams in Germany.
Here are the top three reasons I hire in-house developers first and off-shore developers second.
Distance
Regardless of the collaborative software you use, the conference calls, the Skype meetings; distance is the number one issue with outsourcing web development. The timezones make the communication so much more difficult. Distance also lends it’s self to chaos. When things go wrong, they really go wrong. You can’t exactly gather everyone up in the conference room and triage the situation.
Level of “Big Picture” Experience
The actual work ethic and drive have never been an issue. The speedy return on data input or changes has always been good, but it’s the level of experience that I find the most problematic.
Many times, the project simply does not have good documentation, is not compliant, does not meet standards, and is surrounded by deprecated code which drives me crazy, ah, but thats not all. It’s like I say in the header, not much “big picture” experience. Sure I have met amazing developers from Denmark, Scotland, Chile, etc., but those people are rare. Very rare. The majority of the off-shore teams I have worked with simply don’t have the savoir faire when it comes to building a web application. This is crucial from day one. Starting out on the wrong foot simply eats the time and money up. What does this application really do, what does it mean, will other developers be able to read my code, am I refactoring my code, am I optimizing my DB for traffic, etc., etc. This is the big picture.
Language and Culture
Whenever you have a team or a contractor document or write code that is not in their native language, you could end up spending hours and days cleaning up the mess. I have had applications sent back to me littered with spelling errors. Not only in the code comments, but in the DB and in the functions. QA also seems to be a lot more thorough when you are working with an in-house team. When everyone is working inside the same office culture, it physically puts everyone on the same page. Less chance of error.
…
In conclusion, my goal is not to pit one country against another or to say all developers from these areas are bad, my goal is to illustrate the issues with off-shore development rather than in-house development. While many intermediate developers might be paid 50K - 80K/year which is a stark contrast to paying only 5K for an entire application to be written, you have to think of all the time spent managing a project, stressing over it, putting it into QA, bug smashing and describing the MRD or PRD over and over and over again. 5K can turn into 20K real fast and that still doesn’t mean you have an application you can roll out. Besides, sometimes it’s just not worth the gray hairs.
I recommend hiring locally first, then making a case for hiring or outsourcing your development.

2 Responses to “Top 3 Reasons Why I Don’t Like Outsourcing IT Jobs”
Good article dude. I own an offshore development firm based in Chicago. Finding good technical resources is easy, but finding someone you can trust to get the job done is not.
We don’t take small projects, and if we do, we charge twice what we’d normally charge. The real value in outsourcing is to build a team that acts as a natural extension of you. Again, you’re looking for a trustworthy team that does what they say they’ll do, you don’t need rocket scientists. You can work around technical limitations, but you can’t work around incompetence.
Outsourcing is about high value, not low cost. If you’re looking to save pinch pennies, you’ll be sorely disappointed when you get burned by a ’software sweatshop’
Raza Imam
http://SoftwareSweatshop.com
By Raza Imam on Mar 17, 2008
Thanks.
Personally, I define a “good technical resource” as someone I can trust and someone who is smart. It’s the full package. The main hurdle for me is still the big picturing talent. You are right, you don’t need scientists, but you do need thinkers. People who can envision what needs to be done on a high level.
By kms on Mar 27, 2008