Outsourcing Overseas…Too Hard to Oversee?
RHT paid for a survey of 1,400 CIO’s and published some interesting results with respect to outsourcing software development work. The results came out earlier this year and confirmed the points we routinely make in discussions with clients, prospects, and others in our field.
The study found that a small percentage—around 5%—currently outsource overseas. Ninety percent of those that do outsource do not intend to increase outsourcing levels and some of them actually intend to decrease overseas outsourcing efforts. Companies with more than 500 employees are more likely to outsource than smaller organizations.
- Language barriers. Poor communication is a huge problem when trying to convey complex project requirements. Even when the language barrier can be overcome, it can be a constant source of concern. You’re often left wondering whether or not there is a deep enough level of understanding of the unique business processes that are driving the project in the first place.
- Culture Clash. October 2nd is Gandhi Jayanti in India. It’s a declared national holiday there…but here, the work continues. Even with the most important projects, when work and culture clash, culture wins.
- Time Zones. With a nearly 12 hour time difference from the central US to New Delhi, it’s not likely to find a spry development team at your beck and call at 2:00 a.m.
- Lack of Close Collaboration. Good software development teams require the constant ability to interact with colleagues and management. “Putting heads together” across a table from each other is a far superior way to get things done effectively.
What does it take to successfully offshore development work? In our experience the best results are gained when companies first work with a “local sourcing” company to help manage the tasks to be outsourced. Generally these companies have lots of experience working with offshore teams and can help you navigate around the pitfalls.
The moral of the story: If you are wanting to use offshore resources, leverage the experience of a local outsourcing firm to increase your chances of success.
