Outsourcing Impact on Technology Choice

I find LinkedIn to be a good idea generator for blog topics, for example a question from Vinay Joshi “.Net OR Java what technology projects you outsource — Does technology matter for making decision to whether outsource or not? …” deserves substantial discussion, beyond my brief answer on the site; especially considering that the rest of answers are more about religious war of .Net vs. Java rather than about the question itself.

Of course the answer depends on the context, if you are a technology company that already has the technology selected or a vendor that has a large team with specific expertise in place the discussion has little relevance. For those about to outsource it could be quite important decision though.

If you are planning on outsourcing but have not selected the technology yet, here are a few tips to consider:

  • Flexibility offered by technology is not your friend. The more discipline the technology offers / requires the easier it is to control it, the less are the chances on-shore and off-shore teams drift apart. In particular using Java vs. .NET discussion – Java offers great flexibility and far less commonalities in solving even basic development task. There is always 10,000 ways to achieve the same objectives. It offers multiple schools of thought and competing technologies. .NET offers more disciplined approach, while it offers some flexibility it’s far less the focus or the modus operandi, typically in .NET there is “the right” way of dealing with majority of tasks.
  • Emerging technologies are not made for outsourcing. That seems like a no-brainer, yet I’ve seen many companies moving projects using cutting edge technologies offshore, typically with painful consequences. So just in case, there are many reasons not to do so: lack of experienced resources, blind spots in understanding the technology on the both sides of the ocean, insufficient supporting community and documentation, undeveloped best practices, etc. Each of these issues by itself can destroy the engagement, when the issues combined the failure is guaranteed. Both Java and .NET by themselves are established technologies, however there is always something new being pitched by the respective camp.
  • Close doors to Open Source. Well, that might be too strong of a statement. As a matter of fact I did quite well outsourcing development using Open Source technologies and products and so many people I know. Caveat emptor! If you go for Open Source make sure that you do not stray off the beaten track and stick to very stable and mature products with strong development community. Too frequent release cycle, fluctuating quality of products, unstable supporting community can add insult to injury when combined with inevitable issues of outsourcing.
  • Don’t let the tail wag the dog. Some advanced technologies come with very costly or complex development tools. Some technologies require you to invest heavily in workstations or development environment. Some technologies require extremely high investment in training. And so on. Unless you have extremely compelling reason to do so, do not consider such technologies. Investing into a partner or their environment is not what you want to do especially in the early stages of the partnership. What if the partner already has it all in place? Well, do you want to be locked into using a specific partner? I don’t think so…
  • You can only find free cheese in a mouse trap. In development today there are a plenty of “very simple” technologies. Those technologies could be quickly learned, and superficial or even spurious expertise sold to a naïve buyer. That usually attracts gazillions of providers and inevitably drives the price down. Have you heard about PHP freelancers for $4 an hour? Just go to elance.com or guru.com – you will find a plenty. The chances are you will get what you paid for. The main point here is while the technology at question could be extremely solid it doesn’t mean that any code monkey can operate it. Finding good providers in such technologies could be a challenging task due to the high pollution of the field. Unfortunately PHP today falls into that category, and I am certain tomorrow that will be the case with RoR.

One thought on “Outsourcing Impact on Technology Choice

  1. Many different factors contribute to the cost of a business process outsourcing (BPO) engagement. Among them, IT, especially software, is a key cost determinant that is often underestimated. While software licenses and maintenance typically represent no more than 3% to 5% of a BPO provider’s total cost, they directly drive process automation that immediately impacts the cost of operations. Technology drives the BPO cost structure in three ways: it enables economies of scale, supports sustainable process optimization, and makes labor arbitrage possible by connecting and controlling remote location workflows. With the right software, organizations can balance their needs for personalization and standardization of outsourced processes by creating the capacity to design process and IT implementation jointly. In addition, software is the key enabler for integration between buyer and service provider, both on process and IT levels.

    Regards

    SBL – BPO Services

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