This is a story of an engineering director named Dave* who was forced to outsource his software development. Dave’s company needed to revamp an existing software product to win new customer business. The redesign and new feature enhancements would easily overwhelm his small programming team – and there is no way to hire enough good programmers locally, and quickly enough to release the new product in a reasonable amount of time.
Let’s look at how Dave approached his outsourcing decision.
Dave had outsourced to India in the past and was not satisfied with the large difference in time zone and the poor results he received from a large CMMi certified vendor. This time he focused on Latin America because of their closeness in time zone and culture.
Think about the most important criteria for your situation. For Dave cost was an important factor. However, quality and performance were also critical since he felt his company’s future was at stake. He could not afford to select a vendor that was cheap but ineffective.
At first Dave was attracted to large vendors because of their size and stature. But he discovered the overall size of the vendor is less important than their ability to handle engagements of the size that you need. Ultimately he selected a smaller vendor he felt would provide the attention needed.
Dave expected to save money but did not want a team of cheap junior programmers learning on the job while developing his new product.
Dave was sure of one thing – he was absolutely going to visit these vendors before making a final decision.
Dave took a whirlwind tour of Central and South America stopping at five vendors in five countries in a couple of weeks. His final decision was based on a combination of analysis and gut feel. And then he changed his decision after getting back to the office.
One vendor was a clear leader technically with a true CMMi level 5 process that was well integrated into the entire company culture. But in the end, they were the second most expensive vendor. Next was a vendor that made him feel uncomfortable. “It was like they had something to hide.” Dave said. They just didn’t seem prepared for his visit.
The facilities at the third vendor were under par. The people were smart and nice, but the server room was too hot, over 90 F degrees. The fourth vendor had multiple operations and sister companies all over town. Dave felt like his dedicated team would be outsourced by his outsourcer!
The fifth vendor was his favorite choice. They were a small company with smart engineers and the cost per programmer was second lowest and well within his budget. He felt like he found his vendor partner!
When outsourcing is critical to the success of your company it is wise to visit before making your final choice. Dave used a visit to make his final selection after sourcing and screening his vendor choices.
Dave selected a vendor in Argentina but by the time he got back to the office things had changed. Successful completion of the new software application had become much more critical than price. Dave discussed the vendors with management team and they selected the vendor the CMMi 5 vendor in Colombia that ranked highest on Dave’s technical and software development process criteria.
The Accelerance Partner Assessment Model
Accelerance assesses our global partners in 10 key areas:
- Knowledge Management
- People Management
- Performance Management
- Relationship Management
- Contracting
- Technology Management
- Threat Management
- Service Design & Deployment
- Service Delivery
- Service Transfer
Dave had outsourced to India in the past and was not satisfied with the large difference in time zone and the poor results he received from a large CMMi certified vendor. This time he focused on Latin America because of their closeness in time zone and culture.
Dave started by contacting friends and associates for advice and referrals to vendors. He built a list of vendors that might possibly work out based on technical focus, locations and cost.
The challenge with referrals from friends is they may not fit your particular situation. It’s nice that a vendor did a great job on your brother-in-law’s .NET application but that may not help if you are using Ruby on Rails. Or visa versa.Think about the most important criteria for your situation. For Dave cost was an important factor. However, quality and performance were also critical since he felt his company’s future was at stake. He could not afford to select a vendor that was cheap but ineffective.
At first Dave was attracted to large vendors because of their size and stature. But he discovered the overall size of the vendor is less important than their ability to handle engagements of the size that you need. Ultimately he selected a smaller vendor he felt would provide the attention needed.
Dave expected to save money but did not want a team of cheap junior programmers learning on the job while developing his new product.
Dave was sure of one thing – he was absolutely going to visit these vendors before making a final decision.
Dave took a whirlwind tour of Central and South America stopping at five vendors in five countries in a couple of weeks. His final decision was based on a combination of analysis and gut feel. And then he changed his decision after getting back to the office.
The facilities at the third vendor were under par. The people were smart and nice, but the server room was too hot, over 90 F degrees. The fourth vendor had multiple operations and sister companies all over town. Dave felt like his dedicated team would be outsourced by his outsourcer!
The fifth vendor was his favorite choice. They were a small company with smart engineers and the cost per programmer was second lowest and well within his budget. He felt like he found his vendor partner!
When outsourcing is critical to the success of your company it is wise to visit before making your final choice. Dave used a visit to make his final selection after sourcing and screening his vendor choices.
Dave selected a vendor in Argentina but by the time he got back to the office things had changed. Successful completion of the new software application had become much more critical than price. Dave discussed the vendors with management team and they selected the vendor the CMMi 5 vendor in Colombia that ranked highest on Dave’s technical and software development process criteria.
Your outsourcing vendor selection may ultimately come down to a gut decision but it is also important to know what to look for when you visit prospective vendors. What would you include on your vendor assessment list?
Until next time,
Steve Mezak, CEO
Steve@Accelerance.com
Accelerance, Inc.
Risk-Free Outsourcing
+1-877-99-ACCEL (877-992-2235) x101 Toll-Free
+1-650-472-3785 Global 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.Accelerance.com/swb.htm
*Name not changed, Dave is a real Accelerance client!
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