Software Sweatshop

This is an excerpt from a white paper I wrote about mistakes companies make when they go offshore called "Offshore Outsourcing: 5 Lessons Your Peers Learned the Hard Way"

“Finding technical resources is easy, finding people who are committed is key”
CEO of Global Consulting Company

One thing you’ll learn in your search for the right offshore vendor is that there are hundreds of very good offshore vendors in countries like Brazil, China, Russia, Ukraine, India, the Phillipines, Pakistan, and Vietnam. With some of the best engineering schools in the world, these countries churn out hordes of extremely technical graduates with a passion for technology. The governments of many of these countries understand the value of courting Western business; specifically how it will transform their nations into world-class economies. Consequently, they spearhead programs to support their flourishing software industry and attract foreign business.

In an offshore engagement, technical talent is not enough. Firms looking for offshore partners need to closely evaluate the software development process of their vendors. Does the vendor have an established development methodology (RUP, Agile, etc.)? How strictly does the firm adhere to deadlines? Is the vendor oriented towards long-term relationships with the client or do they prefer transaction-based projects? These questions are important to ask because they reveal the underlying culture and beliefs that govern the vendor’s development process. In offshore development, as with anything, unanticipated problems appear, but at the moment of truth, your vendor should be mature enough to roll with the punches and get the job done.

You should look for a vendor that is focused on business principles and development methodology rather than technical skills. You want an offshore partner that understands your business and how their development process enhances it. The value in offshore software development does not lie in cheap labor. The value lies in finding a company that understands what you’re trying to do, identifies your main challenges, and has a solid process to execute. Looking for vendors based on principles will help you qualify out those firms that sell solely on low price.