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Companies want to outsource my contract to Asia. Why wouldn't I outsource my development myself?

I am in pre-development, trying to research good companies to work with. It seems that they want to outsource the work they would be doing for me to Asian companies while I still pay an American pricetag.

Why wouldn't I contact companies in Singapore, Korea and other Asian countries myself to discuss my development needs?

39 Replies

Jatinder Singh
2
0
Jatinder Singh Entrepreneur
Consultant - Retail Industry Leadership at Slalom Consulting
You could and you will save a ton of money. My company has developers in India and we have presence in US. We can do the development for you at India prices in US. If you are interested, please contact me at jatinder at hatchPlan.io. Check our web presence at hatchPlan.io. Best, -J. Sent from my iPhone
Gabor Nagy
0
0
Gabor Nagy Entrepreneur
Founder / Chief architect at Skyline Robotics
Absolutely! If it gets outsourced anyway, why not cut the middle man?
They are not really adding value at this point.

Stephen Mitchell
2
0
Stephen Mitchell Entrepreneur
Owner, MLogiq
It can be very difficult to find The Right people to outsource to. And then there is the problem that you don't have trusted people "in the room", whereas they likely do.

Anyone can outsource. Doing it effectively is a much bigger question.
Mark Wing
4
0
Mark Wing Advisor
Client Engagement Director at Small Back Room
I guess it does depend on whether the middle man is adding value.

Let's assume it is highly likely the value added work is being done locally (strategic planning, and managing the quality of deliverables, etc) and that he is then outsourcing several component deliverables from different overseas providers, which he then has to bring together as planned. Are you ready to do this work for him? Also, he will probably be working with providers he has an existing relationship with. They will understand the way he likes to work and he is presumably managing their delivery against his tried and tested controls. Can you do this equally well?
Steve Owens
4
0
Steve Owens Entrepreneur • Advisor
Finish Line - A Better Way for Small Companies to Develop Products
For the same reason you hire a contractor to find and supervise all the subs - because the contractor knows how to do it really well.

We use "contractors" (they are really no different than our own employees at this point) all over the world. We have been doing it for 15 years. It took a long time to find these people, and even longer to figure how to get them to work as a team. Even knowing what to send "outhouse" and what must be done "inhouse" is an extremely important decision, and is not obvious.

I have seen a lot of people waste a lot of time and money thinking they can replicate this in a month or two. It always looks a lot easier than it is.
Scott McGregor
1
0
Scott McGregor Entrepreneur • Advisor
Advisor, co-founder, consultant and part time executive to Tech Start-ups. Based in Silicon Valley.
I am in agreement with Mark Wing and Steve Owens. The trick to outsourcing is to have immediate access to quality people in the remote location, and to know how to manage them effectively.

I haveworked with several remote teams in Asia. If you can precisely and unambiguously define what you want in an unambiguously testable way (like: "exactly the same appearance and behavior as our already working IOS native app, but for Android" and passes our existing regression test suite"), then working with most offshore developers will be pretty easy, but if your specs are very nebulous and you are figuring them out as you go, working with remote Asian teams can actually be challenging and more costly than US development as you pay lower unit costs but take many more turns to get it right.

A good outsourcing company can add already identified team members that they have prior experience with on very short notice, and when ongoing support is required they can usually draw upon the original developers again for fixes and enhancements, They should be able to cover the added costs of the experienced project manager(s) out of the savings in programmer costs so their prices are competitive with local US programmers who would not require such magement, but might be in short supply.

You definitely can manage such a team yourself but you might not do it as efficiently. So make sure that is what the outsource companies can deliver for you, not merely quick access to remote bodies that you will find challenging to manage.



Mohammad Siddiqui
1
0
Mohammad Siddiqui Entrepreneur
Staff Completions Engineer (Wolfcamp) at EP ENERGY

Brent, I would not recommend working with any company that is outsourcing the work (especially software), here are couple of things to think about 1) IP, NDA is honored by companies that are USA based and you can take them to court if they infringe IP to other companies. If your work is outsourced how are you going to exercise the NDA? being offshore how do you know they will not sell your code to some other competitor 2) Outsourced programmers generally when asked todo spec deliver ABC, deliver ABC. What I have seen fromcompanies that hire US programmers they when asked to deliver ABC, come back and say; hey why do you not these additional features, have you thought about this and that and help deliver a superiorproduct specof ABCDEF.I hope you get the picture, outsourced programming shops deliver on spec, anything out of it they will say was out of scope as it was never specified (but we can do it, will just take longer). Long storyshort I have been through this and have decided to take one ofmy side evening software projects devawarded here in the USA (Austin, Tx). It costs more but the quality is great and the bugs are to a minimum (Pls not you will have bugs, but you want to try to catch them early and be minimum on the finished product, as your product gets one shot from the consumer.)

Saying that I will say I am sure there are some good development shops offshore, if you plan to go that route make sure to check 3-5 references.

Good luck!

Joanan Hernandez
0
0
Joanan Hernandez Entrepreneur
CEO & Founder at Mollejuo
Hello,

Just to add to the already great answers. If you (Brent) know about what they're outsourcing then you can take that job and do it yourself. However, if you don't know nothing about of that task, then it becomes really difficult for you to outsource. For example, is you're a marketing guy, with little knowledge on a technical front, you coordinating the outsourcing becomes risky for the project.

Best of lucks!
Brent Walsworth
0
0
Brent Walsworth Entrepreneur
Cannabis Location Service
WOW!!! Thanks for the great answers. It really puts things in perspective which I believe will make it easier for companies to work with me. I'm not the easiest person to deal with.

My biggest, and really my only worry, is that I won't know who or how to trust someone that I might work with.

Thanks guys,
B
Gigi J. Kizhakkechethipuzha
0
0
I dream of the possibilities and execute on the probable
Brent,
You are touching one of the most important factor in offshore outsourcing. "Trust"
In my experience, trust can be established by (a) level of transparency your service provider offers through out the engagement (b) referable clients your development partner has worked with already. I will be happy to discuss further over the phone. I am in Philadelphia, PA. EST.
Thanks
Gigi JK
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