Earlier today I ran into this article from CIO.com where 3 CIOs speak about offshoring vs in-house development teams. I would like to share the key takeaways plus some personal comments that may help you if you’re looking for an outsourcing solution.
Outsourcing used to be an all-about-cost decision. Companies struggling to hit their profitability results or labor-intensive firms were hiring outsourced teams –or individuals- to make their cost structure more efficient.
But suddenly they started realizing that the quality was not as good expected. Hidden costs were all over the place: onsite people, extra hours, communication problems. You name it. Projects moving to Agile faced big roadblocks, having to get to the extreme of working during the night to accomplish proper communication.
Some companies decided then to outsource just the minimum, not-value-added work to be able to reduce costs. It became a management intensive and time consuming task, but actually very good for lowering direct development and QA costs.
That mindset is old. The new era of outsourcing is all about finding the right talent and added value in each of the positions you need for your project.
The same way you need to migrate technologies, you need to migrate to a new Nearshore Mindset, where not everything is about cost reduction. While cost is still important and a factor of decision, an expanded reach to a global talent pool and bringing expertise, experience and innovation to your company is what you want to look for.
If you’re worried about what could happen if things go wrong (and you should be), then you need to be aware of one thing: A true outsourcing partner should become part of the client’s company, with shared objectives and goals. If you think your current services provider – or the ones you’re evaluating – won’t be there for you and your goals, then keep searching.
If you don’t have previous experience in outsourcing, I personally invite you to watch our webinar on “The Ideal Outsourcing Team” , where you can find some key concepts and ideas on how to build the perfect team for your project.