Many IT professionals in the U.S. think offshoring of software development just doesn't work. There are several key reasons why those that have tried it have failed. The good news is you can learn from their mistakes and take corrective action before it's too late.
Offshoring is written off by some as not workable. Many have shared offshoring nightmares and horror stories in articles and blog postings. Even the few negative reviews of my book Software without Borders on Amazon are really negative about offshoring and not the book itself!
A recent survey says small company CIOs say they have little interest in increasing their offshore outsourcing in 2008. And many have stopped outsourcing altogether because of management challenges.
94% Are Not Offshoring
59% That Did Had Challenges
Limited use of offshoring may be the cause of the looming IT talent crunch that will cause an increase in programmers' salaries in the U.S. in 2008.
One major reason for not offshoring is the perceived poor quality of the programmers you encounter offshore. I said "perceived" quality because clearly not all offshore programmers are bad. But it seems enough are bad to create a really rotten impression.
Back in 2005 McKinsey published a study that said only a small percentage (10% to 25%) of the huge number of IT professionals graduating from university in India and China are “suitable for multinational engagements". I quoted the McKinsey report in Chapter 11 – The Future of Global Software Development of Software without Borders but at the time I was not sure of the reason so many programmers are unsuitable.
Now a 2007 study from Duke University has dug deeper into the quality of engineering graduates in the U.S., India and China. It describes that many engineers graduating in India and China are only comparable to technicians graduating from two or three year technical schools here in the U.S. and not at the same level as an engineer graduating with a Bachelors degree from an American four-year university.
Independent of the type of college degree or the country where it was earned, the study classifies software engineers as either being dynamic or transactional:
Dynamic Engineers (10% to 20%)
- Capable of abstract thinking
- High-level problem solving
- Uses scientific knowledge
- Solid technical training, but
- No experience to apply knowledge to larger domains
- Responsible for routine tasks in workplace
Unless you pay some attention to who is recruited to work on your software, guess what kind of software engineer you're likely to get offshore? That's right, those transactional engineers that only work well when told exactly what to do.
Selecting the right kind of engagement model with your offshore programmers (and / or the company where they work) is the best way to ensure you get more dynamic engineers. You will want a model where you have more control over the hiring process and the on-going management of the software development process. Below are the six engagement models most commonly used.
Choosing the right offshoring engagement model is a key to your success. From left to right, each model is capable of handling an increasing number of resources and level of control.
Accelerance services can help you with the more complex and critical rightmost 4 of the 6 engagement models. Use Offshoring Jumpstart to find partners that will bid on your fixed price projects and / or build your Offshore Development Center (ODC). Use Rapid Ramp-Up consulting for more complex ODC, Build, Operate & Transfer (BOT) and Captive Operations.
Already have an ODC or offshore captive center that is not performing up to your expectations?
Accelerance is launching a new consulting service called Virtual VP of Engineering for those of you that are already offshoring but running into trouble. For a limited time, you can get a free consultation to discuss your offshoring challenges and take the Virtual VP of Engineering consulting service for a test drive.Contact Accelerance if you think your offshoring is not working and we'll discuss what can be done to fix it. How's that for a dynamic offer!
The Runtime Bottom Line
Offshoring often gets a bad rap, but it's no wonder with so many under-qualified transactional programmers out there. Be careful that you select an offshoring engagement model that will maximize the number of dynamic, high quality programmers you need. And if your offshoring is already in trouble, fear not. Maybe you just need a Virtual VP of Engineering from Accelerance to help straighten things out.
New Accelerance clients:
- Resources needed to convert PSD files to HTML for website designs – Minneapolis, MN
- Programmers needed to redesign an internal CRM system – Yuma, AZ
- Website redesign with Flash and Java applet features – Montreal, Canada
- Flash, Flex and .NET programming team needed to create custom web applications for the pharmaceutical industry in Ames, Iowa
- Programming team needed to create a new e-commerce web application – San Jose, CA
- Programming team needed to create a web application for management of legal evidence
- Java programming team needed to create a backend web application for mobile applications in The Netherlands
News and EventsApril 30, 2008
Steve Mezak will be speaking at 11:30 a.m. in Las Vegas for the Software 2008 Conference. The topic will be "Sinking Like a BRIC - Better Choices than Brazil, Russia, India and China"
Until next time,
Steve Mezak, CEO Steve@Accelerance.com
Accelerance, Inc.
Risk-Free Outsourcing
+1-877-99-ACCEL (877-992-2235) x101 Toll-Free
+1-650-472-3785Global Calls + Fax
Or contact me at: http://www.Accelerance.com/contact.htm
Author of the new book - Software without Borders: A Step-By-Step Guide to Outsourcing Your Software Development
www.SoftwareWithoutBordersBook.com
Accelerance, Inc. | Risk-Free Outsourcing
303 Twin Dolphin Drive, Suite 600 • Redwood City, CA 94065 • Tel. 877.992.2235 • Fax. 650.472.3785
www.Accelerance.com
