2015 KPMG study on outsourcing for technology-related services

Articles covering outsourcing topics by analysts such as Gartner and consulting firms like Accenture often stay at such high level that their practical application requires engaging these firms. Once in a while these articles could be very informative and helpful The latest KPMG study is worth taking look at. That study covering outsourcing for technology-related services shows some radical changes and interesting trends in the marketplace, to which both companies and service providers will need to adapt.

2015 study by KPMG covers over 2,100 contracts across 23 countries with an annual contract value of US$12 billion+. It provides insights into service provider performance as well as extensive insight on IT services market trends, and provides predictions on the future state of the IT services market and projected buying patterns.   The study highlights the following key findings:

  • A shift from cost reduction being the biggest challenge for IT functions to one in which IT services are increasingly viewed as an enabler for improved business service delivery and transformation.
  • Greater focus on enabling innovation via IT outsourcing, especially via enabling greater organizational agility and accelerating the pace of investment into technologies such as cloud
  • The above being said, cloud adoption remains sluggish, with the majority of clients spending less than 10 percent of their IT spend on cloud. Data location, security or privacy are the biggest barriers to cloud adoption.
  • Governance and management of IT services and outsourcing efforts remain a major problem with mixed satisfaction from service integration and management

To access the study materials click here to download the management summary. (The full report is only available to those organizations that have participated in the survey). You can also find an infographic summarizing the key findings from the report by clicking here.

How to Find Great Developers on Freelancing Sites Like oDesk, Elance or Guru

How-To-Find-Great-Developers-on-Freelancing-SitesFinding good developers has never been easier! Hundreds of thousands of first class developers are waiting to bid on your project.  Submit your idea to our marketplace and have dozens of qualified developers bidding on your project in just a few hours.   Some of the brightest minds from all over the world have come under one roof to offer their services for rates as low as $8 an hour!…    NOT!

While the above commercial sounds great, the old adage is still correct – if something sounds too good to be true it most likely is.  No world-class developer is going to work for $8 an hour.

Great Developers are Hard to Find

The good old days of $5 Ph.Ds. are long gone and never coming back. As a matter of fact someone once said, “What makes them good old days is a great imagination and a bad memory.”

Yes, the world is not yet completely flat and there is a significant difference in standards of living and that can greatly affect the rates offered by developers. Take a look for example at the comparison here. Today the difference between the average web developer in India and the USA is staggering. So it is conceivable that you can find some solid developers that are charging their average local market rates through market places like Elance or Freelancer (see, here for a comprehensive list of freelancing marketplaces).   It is also conceivable that in order to compete better that developer will reduce his or her rates. But let’s examine the chances… Continue reading

The Mystery of ROI for SEO Campaigns

ROI imageThis blog used to attract a lot of visitors and then due to circumstances beyond my control I had to shut it down for almost a year. When I was finally able to bring the blog back to life a large portion of the traffic was lost, various popularity rankings were down, and I realized that restarting would be even more complex than what I had to go through when starting from scratch a few years ago.

I had to undergo many pains including inevitable investment in SEO, a potential bottomless money pit, and the first question on my mind was its financial impact, budget I need to allocate, and the ROI to expect.

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How to Find Someone to Build an App

How-to-Find-Someone-to-Build-an-AppA few days ago an old friend of mine called me with a question that I’ve been asked many times before. It typically goes something like this: “I have an idea for a great app, but I don’t know anything about programming. How can I find someone who can develop that app for me? And, I don’t have much money to spend on it”.

Jane (the friend of mine) is a physical therapist with over 20 years of experience. She is great at her craft, but has zero knowledge about building software, outsourcing, and building apps. I wasn’t completely sure where to start when answering her, because there are actually a lot of questions behind the question here, and to answer all of them in detail would require me to practically write a book! In this post I will attempt to answer this very question without going into every detail so I can keep this at a blog post appropriate length.

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Should You Hire a Virtual Assistant Through a VA Company, a Marketplace or Go Direct?

Taking on the task of hiring a Virtual Assistant can be incredibly daunting! Literally millions of people of all levels of skills and walks of life are ready to offer their help. Ratings and reference systems help filter out the supply of workforce in some way, but still, far too many to chose from.  And who can guarantee that VA you’ve chosen had not played  the system somehow or won’t outsourced their job to someone else?  You have no clue – they are virtual!

virtual-agentsFor this reason, you might choose to hire a Virtual Assistant through an existing VA service. This can be attractive because, ideally, they have already pre-screened their VAs and will provide them with the infrastructure they need to get the job done, such as a PC, internet connection, etc.  But there are also some pitfalls to going this route that you need to be aware of.

Before hiring a Virtual Assistant through a VA company, you should consider the a few important factors:

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5 Traps of So Called Cost Effective SEO

5-traps-of-cost-effective-seoIf being found on the web is essential for you or your business, you are probably no stranger to Search Engine Optimization (SEO). SEO, an extremely complex and comprehensive set of activities, has become a major component of marketing strategies for most companies today, and a source of revenue for countless (offshore) SEO providers.

For most businesses SEO is not their core activity and that makes SEO a good prospect for outsourcing. Also many aspects of SEO are somewhat mechanical and labor intensive, so it’s no surprise that many companies elect to outsource SEO. With a large number of SEO providers out there the cost of it is alluringly low.

However, cheap outsourced SEO is not the brightest idea you can try; chances are you will “get what you paid for”, and often even less. Paying just a few hundreds of dollars per month for someone to handle your SEO efforts is likely to be a complete waste of money. As the common saying tells, if something sounds too good to be true, then it most probably is. Here are 5 potential traps to think about whenever you are assaulted with promises of boosting your Google rank overnight: Continue reading

13 Tips for Managing Your Team in Ukraine

office-in-UkraineOne of the most challenging aspects of management offshore development teams is dealing with a large host of cultural differences. Fighting or ignoring the differences is likely to cause serious issues.

Expecting an offshore team to change their culture to fit yours is naïve if not insane.  The key to success is learning the culture of your offshore team, finding the ways to work around the differences and even embracing and capitalizing on them.

While differences between Ukrainian and American cultures are relatively subtle they are still sufficiently profound and are worth learning. The good news is that just a handful of techniques will get you going. Here are a few most important considerations:

  1. Ukrainians and Russians. Understand that ex-soviet Union is extremely ethnically and culturally diverse. While you might not be able to tell the difference between Ukrainians and Russians, the differences exist, and given recent political tensions you need to be very careful with generalizations, labels, and blanket statements.
  2. Team vs. Individual. I find Ukrainians to be less individualistic than Americans. When motivating your offshore team you need to pay equal attention to praising the team as well as the specific individuals. Do not put your top performers in too much of limelight though, as they are more humble than proverbial Americans and excessive “popularity” of an individual can trigger negative team dynamics.
  3. One-on-one connection. Your Ukrainian employees need to know that you are a real person and are truly interested in their individual progress. Regular one-on-one chats will motivate your team members and increase the overall efficiency of the team.
  4. Respect of authority. Ukrainians have more appreciation for organizational structure and higher respect for authority than people in the states. A clear line of authority must be present through out your offshore organization.  Make sure to clearly specify reporting relationships and relative seniority.  It is also very important to identify communication and escalation channels.  At the same time feel free to drop the formalities in your day-to-day communications. Abiding by the rules and following formal protocols aren’t innate traits for Ukrainians.
  5. Friendship. Personal relationships and friendship are very important for Ukrainians, and have deeper meaning than for most Americans. Building relationships with your team members will pay huge dividends in productivity, retention and reliability of the team. Consider investing in team swaps and team bonding exercises, the longer and closer you work with your team, the tighter the bonds, the better the outcomes.
  6. Bad News Delivery. Do not expect bad news to reach you immediately. Your offshore team is likely to take matters in their own hands and try to resolve issues before they notify you. That is not typically related to confrontation avoidance or desire to please you as a customer. More often it’s a result of pride and “us vs. them” mentality.
  7. Language. Learning Ukrainian would be a great step towards building a great relationship with your team, but I would not necessarily recommended it, unless it’s your life mission the ROI is just not there. You may want to learn a few phrases; the goodwill return on this investment will be huge.
  8. English. The number of English speaking Ukrainians is growing at decent pace, yet their ability to practice spoken language is severely hindered. Communicate in writing.
  9. Conflicts. Ukrainians can be rather temperamental and outspoken. Don’t expect them to hold back and sugarcoat the issues. Most of the time you are better off letting the tempers cool off before you can dig in and expect to get a reasonable and logical response.
  10. Uncertainty. Ukrainians are less adapt to dealing with uncertainty than most Americans. Consider that in every aspect of your communication with the team and individuals. For example, career path, raises and promotions should be treated in a well-structured and predictable manner.
  11. Long term planning. Ukrainians are far more long term oriented than their American counterparts. That comes across loud in clear in their readiness to invest in education, career decisions, and employment preferences. I do have to admit that events of the last couple decades, overall uncertainty and instability put a huge dent into this cultural trait. Take-money-and-run and carpe diem attitudes are far more prevalent nowadays.
  12. Holiday. Ukrainians are a very festive nation, and their traditional celebrations are beautiful and definitely something you should witness for yourself. And Ukrainians take their holidays seriously, so you need to be aware of the national holiday calendar as work efficiency of your team will decrease dramatically during the times of celebrations, and often a couple days afterwards.
  13. Time off. 10 days of PTO on annual basis? You gotta be kidin’. Not even remotely close. Think 3 times as much and that doesn’t include sick days and holidays. So plan accordingly.

Well, that baker’s dozed does it. Not by any means the full list but a good 80/20 approach that should keep you going. Do you think that I am missing anything important? Disagree with my observations? Please do let me know, I love to know your thoughts and opinions and am happy to share them with the readers. Please comment or email me krym2000-po@yahoo.com.