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October 24, 2006

The Lost Weekend

Did you ever try spending an entire weekend trying to get something done? And then given up – unfinished, alone and in frustration?

That is the prospect many of you face as you look for an offshore vendor.

One new, soon-to-be Accelerance client called me this week and complained, “I spent all weekend – over 15 hours, looking for an offshore vendor. And I am no smarter than when I started!”

For him it was a lost weekend of time spent looking online without much to show for his efforts.

In the 1945 movie The Lost Weekend, Ray Milland plays a man gripped by alcoholism. He loses much more than time over his lost weekend. Happily, searching for an offshore vendor is not nearly as debilitating.

After all, it seems like an easy thing to do. Get on Google, do some searches, find some vendor websites and make contact.

But then you learn that there are thousands of websites. And even when a vendor is good technically, they are usually bad at convincing you of their skill through their website content.

You absolutely can find a vendor on your own. Some of you may have done it, either through luck, perseverance or with a referral from a friend. It is just takes time.

Successful VPs and CEOs have reported to me that it has taken them a whopping 3 to 5 months of effort to find, evaluate and finally select an offshore vendor on their own. Even then they run the risk of choosing a vendor that is not the right fit.

It can be hard to admit you need help getting started with outsourcing if you are an educated engineer or business person.

But spend a weekend or two trying on your own and you may be convinced like this new Accelerance client was. His offshore vendor selection will now be completed in a couple of weeks, maybe a little longer if he is busy with other duties and priorities.

This dramatic time reduction is achieved by choosing from a short list of several pre-screened and pre-qualified vendors. Accelerance will then work with him to determine the most important criteria for making a final vendor selection.

Like dating or finding a spouse, I wish there was an even easier way!

Many of you voted in my survey on the help you need for outsourcing. The most interesting response is that the majority of you (57%) voted for wanting information about outsourcing only and no consulting.

Here are all the votes:

26% I need help finding an offshore partner for software development.
16% I need help to create my own offshore operation or subsidiary.
4% I can develop my own software – I want help testing it offshore.
26% I need help describing my software so it gets developed correctly offshore.
23% I need help with managing the entire offshore software development process including vendor selection, specifications, day-to-day management and quality assurance.
24% Software is only one thing I outsource – I want help with outsourcing other business processes too, like accounting, customer support, data entry, etc.
57% I don’t want consulting services - I just want information about offshore outsourcing and the software development process so I can explore outsourcing myself or with my own internal team.

Of the 57% who voted for information only with no consulting, 28% also voted for wanting help in describing software for outsourcing and 28% voted for information about other kinds of outsourcing besides software development.   

My conclusion from these votes is that many of you need a relatively small number of engineers (or other outsourcing professionals) and therefore you cannot afford expensive consultants to help get you started.

And if you need a large number of engineers then you already know the large name-brand outsourcing vendors from India you can talk to. If you need 50 or more engineers then these large vendors will jump though hoops trying to win your business.

But what if you need 3 engineers or even 13? That's too small for the big boys. And you you'd need some pretty big hoops to handle all the smaller vendors out there.

So people are hungry for useful information to help get started with outsourcing in a smaller, more measured way. Therefore, I will direct the efforts at Accelerance to create this kind of information over the next few weeks. Thanks to all of you who voted!

In the meantime, an existing source of information is the book Software without Borders, available on Amazon. This book is a rich source of the objective outsourcing information you can use to start your software outsourcing yourself and make it a success. See http://www.SoftwareWithoutBordersBook.com to learn more about the book.

And remember that new Accelerance client with the lost weekend? As an owner and reader of Software without Borders, he received a discount off the Accelerance service he selected after deciding to accelerate the start of his outsourcing.

***

The  Runtime Bottom Line: Where do you stand compared to others in the voting for outsourcing help? Do you want help getting started or just information to do it yourself? You can certainly find an offshore vendor on your own but you run the risk of spending a great deal of time doing it. Accelerance delivers the information and services you can use to dramatically save your time and improve your results.

Until next time,

Steve Mezak

Accelerance, Inc.
Risk-Free Outsourcing

www.accelerance.com

October 03, 2006

What Outsourcing Help Do You Need?

The podcast of the Software Development Forum SEM SIG panel discussion I moderated last week on Outsourcing Horror Stories is now available here:

http://accelerance.typepad.com/runtime/2006/10/podcast_of_sdfo.html

The event was a fascinating look at the slimy underbelly of outsourcing gone wrong from several software executives that lived to tell about it.

But don’t you hate panel discussions where the panelists (and the moderator!) drone on and on leaving no time for questions from the audience? That can be a real snoozer.

But not so here. I made a few introductory remarks and limited the initial comments by the panelists to just a few minutes each. The audience immediately responded with questions and we went on from there with a terrific discussion.

Here are a couple of outsourcing horror stories that we discussed:

FROM THE AUDIENCE: How can I find a vendor with the technical skills I need?
I couldn’t find a vendor experienced with Lotus Notes. One vendor said they had done projects with Lotus Notes but then we discovered that the engineers with Lotus experience had left the vendor. I was desperate!

FROM THE PANEL: We had a VERY expensive vendor from Madison Ave in New York City. They had a lot of experience creating fancy websites for small companies. But it took us several months to realize they could not handle developing our web application, especially after some of their key people left the company. We wasted a year and many thousands of dollars before switching to a vendor in India that is getting the job done for much less money.

Another horror story came in an email, received in response to the last issue of Runtime. A company that wired 25% of the project fee to a vendor that promised to finish in 3 weeks. After 6 weeks they got no results, canceled the project and are now trying to get their money back.

Yikes! Buyer beware...!

But outsourcing is not just about horror stories. You should be able to use reliable low-cost offshore outsourcing as an enabler of your dreams. You should have a bigger vision, looking beyond the risks to new and exciting possibilities.

You should use outsourcing to change the world in a way that delivers value to your customers and profits for your shareholders and yourself.

As I said, when I moderate events like this I like to get the audience involved from the start. The information flow needs to be bidirectional and not a lecture from the panelists and moderator. I want to hear your questions and concerns.

In that same spirit, I now have some questions for you. You can answer these questions on this special web page: http://www.Accelerance.com/OutsourcingHelpSurvey.htm

First, what is your biggest challenge with using offshore outsourcing for the development of your software?

Second, what kind of help do you need with outsourcing? Here are 7 possibilities. You can vote for all the ones that fit your situation on the web page:

  1. I need help finding an offshore partner for software development.
  2. I need help to create my own offshore operation or subsidiary.
  3. I can develop my own software – I want help testing it offshore.
  4. I need help describing my software so it gets developed correctly offshore.
  5. I need help with managing the entire offshore software development process including vendor selection, specifications, day-to-day management and quality assurance.
  6. Software is only one thing I outsource – I want help with outsourcing other business processes too, like accounting, customer support, data entry, etc.
  7. I don’t want consulting services - I just want information about offshore outsourcing and the software development process so I can explore outsourcing myself or with my own internal team.

Vote using the special web page now -- it will only take a few seconds.

To encourage your response, I am offering to send you an autographed copy of my book Software without Borders at a hefty 40% discount off the normal price. I will send you your copy immediately if you decide to order.

But you don’t have to buy the book. Go to the web page and cast your votes. It won’t cost you a penny and takes just a few seconds. And your vote will be included in results reported in the next issue of Runtime.

Software without Borders is also available on Amazon.com. This book is a rich source of the objective outsourcing advice you need to avoid outsourcing horrors and to make your software outsourcing a success. See http://www.SoftwareWithoutBordersBook.com to learn more about the book.

***

The Runtime Bottom Line: Where do you stand compared to others in outsourcing your software development? Cast your vote on the web page and contribute to this study. You’ll see the results in a couple of weeks. And get a great discount on an autographed copy of my book in the bargain.

Until next time,

Steve Mezak

Accelerance, Inc.
Risk-Free Outsourcing

http://www.Accelerance.com

Podcast of SDForum SEM SIG - 9/21/2006

Here is the podcast of the Software Development Forum event entitled “Outsourcing Horror Stories: Lessons Learned the Hard Way”. held on September 21, 2006 at SAP in Palo Alto, California.

Here are the recordings in about 15 minutes segments each:

Introductions and horror stories from the panel

Q & A segment 1

Q & A segment 2

Q & A segment 3

Q & A segment 4

About the Moderator

Steve Mezak, CEO, Accelerance, Inc. Author : Software without Borders: A Step-By-Step Guide to Outsourcing Your Software Development

Steve Mezak founded Accelerance in 2001 to share his expertise in successfully integrating in-house and outsourced development teams (both on and offshore) for dramatic cost and time savings. As an internationally acclaimed speaker and consultant, Steve has shown hundreds of software executives how to use outsourced development as a major strategic advantage for developing their software. Steve brings a wealth of practical information to his clients, helping them review outsourced development options and using his field-tested services to deliver risk-free outsourcing.

Steve is a veteran of six startups, including Aspect Development, sold to i2 for $9B and Digital Market, sold to Agile Software for $75M. His roles ranged from technical lead to CTO and CEO. He has over 25 years of software development experience moving from writing software code to responsibility for managing software teams and budgets. Steve has a BS with High Distinction in Computer Science from Worcester Polytechnic Institute and studied at UC Berkeley and City University in London.

About the Panel

Mark Miles

Mark Miles is a graduate of Pepperdine University's Graziadio School of Business, and brings a wealth of business knowledge across many industries. Serving nine years in sales and marketing management with Eli Lilly and Company, Mark successfully launched six diabetes and neuroscience products. As former CEO of BARIDATA, Mark helped develop an on-line system to help the 125 million overweight patients in the U.S. lead longer, healthier lives. The BARIDATA helps system, patients, providers, and surgeons – as well as psychologists, dieticians, nutritionists, physician assistants and nurse practitioners – get a more efficient method for communicating, exchanging medical records, and assessing patient progress. Mark was instrumental in helping BARIDATA overcome many obstacles in creating their online system with outsourced teams in New York City, Costa Rica and India.

Joel Riff

Joel Riff is a partner with the law firm of GCA Law Partners LLP in Mtn. View, California. His practice focuses on technology transactions (including outsourcing) and online commerce for a wide variety of clients (from start-ups to multinational publicly-held companies) that develop, distribute, and utilize computer, Internet, and other technologies. Mr. Riff received his J.D. from the University of Chicago Law School and his BGS from the University of Michigan. Prior to becoming an attorney, he worked as a computer programmer in IT departments for five years.

Phat Nguyen

Phat Nguyen is Founder and CEO of SAAS Software. Phat worked at I.B.M, Nortel Networks, and Cisco Systems in a number of engineering and business positions prior to starting a web-based software company. He holds an M.S. in Management Science and Engineering from Stanford University and a B.S. with High Honors from University of California. Phat has experience outsourcing to Romania and Argentina.

Ly H. T. Pham

Ly H. T. Pham has over twenty five years of system software management, consulting and entrepreneur experience, Ly-Huong is a founding partner of Zenterpriser, an angel group working with early and late stage companies. She also currently serves as CEO and founder of Mobiscale, a stealth-mode provider of scalable software solutions for the mobile industry. Prior to Mobiscale, she was CEO and co-founder of Bluekey Services Inc., a company focusing on contract manufacturing software services. She held several executive positions including Senior VP of Corporate Development and Operations at Cray Inc., a publicly held company and the premier provider of supercomputing solutions. Prior to Cray Inc., Ly served as CEO at Turbolinux Inc, chief operating officer at Onscreen 24, and CTO and VP of R&D at VTEL Corporation. Prior to VTEL, she led the development of the award winning, easiest to use Macintosh OS 8 user experience at Apple Computer. Prior to Apple, she held numerous technical and management roles at Wang Laboratories, Inc. She was also a venture advisor to IDG VN, a venture fund investing in Vietnam. She has been granted ten patents as a co-inventor in the area of data object integration and visual communications. Ly is a board of director of Vietnamese Silicon Valley Network, a non-profit organization focusing on being a premier global bridge among Vietnamese professionals in the high-tech industry around the world. Ms. Pham received a B.A. in Mathematics, an M.S. in Information Systems from Boston University, a Presidential/ Key Executive M.B.A. from Pepperdine University, and is currently enrolled in the Human and Organization Systems PhD program with Fielding University. Ly has outsourced to Vietnam, India, China, Korea, Eastern Europe, Ireland, and Russia.