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

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.

Why Successful Businesses Outsource Content Creation

tax preparation serviceTwenty years ago I don’t think anyone could have really imagined everything that would be required today in order to have success in business. It is no longer just about providing great service or product and a solid sales team supported by traditional marketing. Any business today needs an online presence that goes far beyond a simple website.

You now need social media accounts, a blog, a broad range of SEO and SMO activities and artifacts, and so much more. Just learning it all can take up a tremendous amount of time, let alone, trying to actually find the time to put it all into practice. Blogging alone can easily keep a writer busy full time. And content that you need to produce is not just limited to blog posts.

Articles and various content elements used in SEO, website content, e-books, whitepapers, sales letters, auto-responders, …really just about anything your marketing team needs requires a lot of content. And not just a lot of content, but a lot of different types of content, that might require a diverse set of skills, tons of attention, and can cost you a lot of money…

That is where content outsourcing comes in: Continue reading

Offshore Developer Rates, a Few More Words

If there is one question in the outsourcing industry that never goes away it would be the question of rates.  So I thought i should share with you a cute infographic from Staff.com – Salaries of Web Developers in India, the Philippines, USA and Around the World that I run across when doing a research for one of my clients.

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How to Stay on Top of a VAs Work Without Micromanaging

MicromanagerEveryone who uses VAs on somewhat consistent basis  has been burned at some point, and I am no different. In fact, a few years ago I had hired a VA to work on SEO. Initially her work was good but at some point it became spotty, and eventually, downright bad. As it turned out, she had “outsourced” her job to her 9-year-old son. Apparently she thought kindergarten was enough of an education to tackle the job. While this story might seem shocking, it is not unique, and after you have been burned once or twice, it can be easy to fall into a trap of micromanaging.

While staying closely on the top of your VA’s work might seem necessary, in the end of a day you just want to ensure that you are getting what you pay for, it is quickly become bad for both your working relationship and your overall bottom line.

Do you think you aren’t guilty of micromanaging?  Ask yourself a few questions:

  • Do you often find yourself frustrated because your VA didn’t do exactly what you told them?
  • Do you spend a lot of time making corrections and cleaning up your VAs deliverables?
  • Do you notice that nothing that your VA does is good enough?
  • Do you need to know exactly where your VA is and what they’re working on?
  • Do you need frequent and detailed updates?
  • Does it always take your VA longer to do the task then it should or would’ve been if you’d done it yourself.?
  • Do you spend a lot of time reconciling timesheets and deliverables?
  • Do you prefer to be cc’d on all emails?
  • Do you think that getting a VA was a bad idea?

If you answered “Yes” to 3 or more questions in this list, chances are you are micro-managing your VA. If you said “Yes” more than 5 times, then I need to tell you that you, my friend, are a micro-manager without a doubt and you will lose some really great employees if you don’t stop. Alas, while this is great advice, it is not easy for many of us to instantly stop micromanaging. So just take it easy and start letting go one piece at the time. Continue reading

Five Proven Ways to Bridge the Cultural Gap When Outsourcing to China

bridging-the-gap

Outsourcing, particularly offshore outsourcing, can be quite taxing due to communication and cultural challenges; this is particular evident for countries like China, which are culturally very different from the Western world. If the cultural differences are not tackled properly, they can cause irreparable losses of both, time and finance; as tension and communication breakdowns due to cultural conditions make it near to impossible to reap the benefits of outsourcing.

Our entire lives are governed by culture and it is the primary factor that determines all the choices we make as well as the preferences we opt for; yet it essentially remains invisible to us. It is only when we actually move into a new place or find ourselves dealing with someone from a “far away land” that we are struck by the magnitude of the impact that it has on our daily lives.

There are many profound differences between the Western and Chinese cultures that can impact communications, teamwork, and motivation of your employees. Here are a few of the most pronounced differences:

  • People in China put far more emphasis on team collaboration and performance than on individual contribution. People are generally more humble and frown upon on self-promotion which is very common and often necessary in the USA.
  • Chinese society is far more formal and hierarchical than in the USA. Hierarchy and clear delineation of duties are not only respected – they are required for productive collaboration. While in the Western countries we see informal style practically required for successful collaboration.
  • Vast majority of people in China value maintaining harmonious relationships over accomplishing tasks, and a typical Western remark such as “nothing personal” would not be understood.
  • Avoiding public confrontation is built in into the Chinese culture and maintaining “face” plays extreme importance in communications. Cut to the chase, “in-your face” truth so common among Americans will gain no support in China.
  • Chinese look differently at rules and regulations than most Americans. The Chinese people place more faith in personal relationships than in written rules and procedures.

Each of these differences can easily derail otherwise successful engagement, combination of them is truly terrific. The good news is that you can address this challenge in a structured manner, bridge cultural gaps, and minimize the risks of inevitable tensions that develop due to cultural differences.

Here are five proven ways to bridge the cultural gap when outsourcing to China.

  • Language. In order to truly access the Chinese culture and to thrive with them, the first step is to learn their language. Unfortunately, learning Mandarin or Cantonese is likely to look like an insurmountable challenge for most native English speakers living the USA or Western Europe. A short cut here is to hire a few key on-site team members who are already bilingual. I also recommend learning at least ~50 of most common Chinese words and expressions. The good will generated by this effort could be hardly overstated.
  • Cross-culture Education. Both your offshore and onshore teams can benefit greatly from learning the culture of the other shore team. I recommend hiring professional training or outsourcing advisory team specializing on cross-culture education.   A one or two day event will go a long way to cover the gap.
  • Team Swaps. Swapping team members, a program similar to foreign exchange student, is a great practice. Team members that are going to the other shore should go through a cultural training boot camp prior to departure.
  • Capitalizing on differences.Don’t force what’s unnatural and against the grain in terms of culture, don’t try to change your team members’ cultural foundations, beliefs or habits. Changing people is a futile venture in general. Instead recognize the differences and capitalize on them. For example, the Chinese predilection to hierarchy and team collaboration can help you build stronger teams.
  • Compensation and Motivation.Design compensation, motivation and recognition systems in a way they take cultural aspects into consideration. Simple adjustments such as “team of the month” instead of “employee of the month” can make a huge difference.

By no means is that an exhaustive list of tools that can help you to build better relationships with your partners in China. Would you like to go deeper into this topic? Do you have your own ideas you’d like to share? Please comment or email me at krym2000-po@yahoo.com.

Five Ways to Screw Up Your Content Outsourcing

regret-nohingAs our world becomes increasingly virtual, and therefore more connected, more and more companies are considering content outsourcing for a variety of tasks. This can be a truly great decision for any company, but there are also plenty of ways to screw it up.

For example, a client of mine decided to outsource his company’s blog. He hired a few providers on eLance and moved forward without establishing expectations for quality and even without defining when the work should be delivered. It turned into a complete nightmare after months went by with very few acceptable blog posts. Eventually my friend had to find a new writer. That put his company months behind schedule to meet their viewership goals. In fact, they ended up losing many of their existing followers due to the slowdown in content publishing.

Nothing like that ever happened to you? Maybe something similar? Well, here are five ways you can be guaranteed to screw up your content outsourcing:

Don’t take the time to identify what you really need. Before even beginning the process of outsourcing, you need to identify what it is that you need. Use S.M.A.R.T. approach to identify objectives and criteria for success. If you don’t know exactly what you are looking for, it will be impossible to find the perfect person/company for the job.

Don’t do your due diligence. Take the time to research the provider. Ask for examples of their past work. Have them provide references. And spend the time necessary to find out if they really have the skills and knowledge required to do the job well.

Don’t set up clear expectations. Before your new provider ever begins working for you, you need to set up clear expectations. Your S.M.A.R.T. objectives will coma handy at this point. Have specific tasks and milestones for when the work needs to be completed or sent in for review. Miscommunication of expectations can easily kill what could have turned out to be a fantastic relationship.

Don’t get guarantees. Have a contract with your provider that clearly establishes what is expected and that offers guarantees of the quality of work that should be delivered. This helps protect both of you.

Don’t get buy in from everyone. Unless you are a sole proprietor, you likely have at least a few other decision makers that need to be consulted before making a decision regarding outsourcing. In order for outsourcing to be successful you have to receive buy in from all of the people that have a major stake in the outcome.

What do you do to ensure your content outsourcing success? What have been your failures? Or successes? Please share your personal stories and suggestions in the comments below or send me an email at krym2000-po@yahoo.com.

Afraid of Using a VA? Here are Proven Tips To Minimize Your Risk

halo-cortana-1Even though using a Virtual Assistant is now considered to be common practice for many entrepreneurs and companies, delegating tasks that you’ve always done yourself can still feel scary. It is a frightening concept to give important tasks to someone you have likely never met in person. It might make you feel like you are losing control. The most common thought is probably an old cliché – If you want something done right, do it yourself. It’s old, but not good. In fact, for many of us “DIY” is pronounced as “die” :) Being a superhero (superworker) rarely pays. And I promise you, using a VA can actually be very rewarding.

There is always a risk when hiring a new employee of any kind, and there are steps you can take to minimize the risk you take on. Here are some tips to help you minimize your risk:

Start with the right hire. Remember it’s not about the best VA. It’s about the right one.

  • Take the time to do your prep work. Before you ever begin the hiring process with a new VA, you should know exactly what you want from them. This helps to minimize confusion, find the right person for the job, and maximize productivity for both of you in your working relationship.
  • A great way to know exactly what you want is to record what you do. You can use screen-capturing software such as TinyTake to record your actions and use it to explain the tasks to your VA.
  • If the scope of work your VA will be doing is likely to expand (which is often the case if the VA is good) you want to look for someone who can deal with more complex tasks that those you currently have on the plate. Don’t aim too high though, because your VA may be costing you too much or even worse be under-challenged and unmotivated to do their best work from the beginning.
  • When you are evaluating VAs for your new job, it is important not to focus on the rate.  Rate (however important) is secondary, because the quality of the VA and the work he or she will provide should be your main focus and motivation.
  • Get your paperwork in order. Before your VA begins doing any work for you, make sure you have an established contract with specific deliverables and requirements attached. This would include pay, hours per week, when payment should be given, the start date, specific tasks, quality expectations, and reporting frequency.

Once you believe you have found the right VA, it is important to spend the time needed to establish the best possible work environment for both of you. Continue reading

Offshore Destinations: Ukraine

ukrainiansIt’s no surprise that I have a strong predilection towards outsourcing to Ukraine – both my parents were born in Ukraine, my wife grew up in a Ukrainian city, and many of my friends have Ukrainian roots.

My own experience in working with development teams in Ukraine along with what I learned from my friends and family proved to me that Ukraine is an attractive IT outsourcing destination. I am not the only one to think this way as according to the analytics data recently released by top$dev, Ukraine takes the leading position on the IT outsourcing market of the Eastern Europe. At the moment, Ukraine takes 33% of the market, Russia is on the second place with 21.8% and the last of the top three East European outsourcing countries is Romania with 9%. Just a few years ago Ukraine was named the “Outsourcing Destination of the Year” by the European Outsourcing Excellence Awards.

Of course the recent political crisis and ongoing military operations in the eastern part of Ukraine raised a lot of concerns across business community.   But even a cursory look at the situation in the country shows that the crisis did not negatively impacted the outsourcing industry. On the contrary, this situation presents you with a lot of opportunities, for example a chance to employ qualified professionals for a lesser cost. The difficulties that Ukrainians face at the moment make them more eager to work for stable foreign companies and ready to accept lower salaries.

Personally, I am convinced that Ukraine remains a great outsourcing destination and with that let me share with you some of my personal knowledge and the information I’ve gathered through my network. Continue reading

Not Giving Up Is Overrated and Why You Should Fire Your Provider Now

I do not know how many times I’ve heard some form of a “never give up” cliché.  Google returns 185M results for “reasons to never give up”, every motivational speaker has a supporting story in their arsenal, and chances are you heard it at least 10,000 times as well.

Yes, we all have seen a plenty of examples where tenacity and perseverance paid off.  We know that in some cases a call to never give up may help us to get up and go on after we get knocked down.  And yet, in far too many cases “don’t ever give up” is nothing much but a banal saw or even worse – a dubious guidance that leads us in a wrong direction.  “Never give up” mantra can become the shackles fettering us to failures, doomed concepts, or wrong partnerships.  It may keep us stuck, limit creativity, and reinforce mistakes.

Determining a course of actions based on slogans, role model’s mottos, or old proverbs is not going to get us far.  We need to make a decisive action when the need is indicated, and this action could be to throw in the towel.  That in particular applies to terminating a less than successful offshore partnership.

I don’t suggest that we should stop trying at a first sign of difficulty or fire our providers as soon as we some problem brewing.  Nobody is perfect, it’s only fair to give your provider a second chance, and the cost of switching providers could be significant.   What I am 100% clear on is that in many cases sticking to outdated decisions, keeping existing partnership, or trying to fix something hopelessly broken is not the best strategy.

More so, if you decide under the circumstances that the best step forward is to fire your freelancer, offshore vendor, or service provider you want to “give up” on them as soon as possible.  In 99 cases out 100 the only regret you will have later is not doing it earlier.

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Another Offshore Manager Daily Routine

daily routineA good friend of mine, Alexey, is an “offshore manager” for a mid-sized technology company with offshore offices in Ukraine. After reading my last post he decided to sent me his daily routine. I put “offshore manager” here in quotes since it’s my friend’s role, not the title. Anyway, in his case ODC is wholly owned by his company, and he has a full time job of overseeing development and QA activities performed by the offshore team.

Interestingly enough, Alexey is not an engineer, but for all intents and purposes is a project manager, very good one. His team in Ukraine is over 60 people and is responsible for product that generates at least 50% of his company revenue. Alexey’s offshore team is doing exceptionally well and is considered one of the key ingredients of the company’s success.

I think in a large degree offshore team success is due to Alexey’s work, leadership and unyielding dedication to quality. And now without further ado let me present slightly edited Alexey’s daily routine –

  • 15 min Categorize (not read) emails received
  • 90 min Participate in up to 3 daily SCRUMs (high risk projects)
  • 30 min After SCRUMs I usually have 1 or 2 one-on-one meetings with my team members scheduled at this time. My goal is to follow up with each tech / QA lead at least once a week, with every other member of the team – every other month. Most often via Skype. Meetings are scheduled in advance as recurring appointments.

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The Bottomless Pit of SEO

bottomless-money-pit-seo-If you are a novice blogger, an affiliate, or plan to make a killing by placing Google ads on your site you may believe that SEO will bring you tons of money. It may, but unless you watch every step and invest a great deal of efforts in building the traffic, it won’t.

A couple months ago I started a mid-sized SEO project. I guess by now, after going through a few dozens of SEO engagements I should not be too worried, yet I was. The SEO world has changed a great deal since my last project. Also this time I needed to start from scratch – new site, new for me, very competitive market, and as usual very small budget, both in terms of money and my availability. So, eLance / oDesk here we come.

As it’s typical for SEO engagements I started getting responses to my project almost instantly after I submitted it. 20 or so proposals came in the first hour, about same in next 24 hours, and about a dozen afterwards. Most of the proposals came from India with cost ranging between $5 and $15 an hour. Pretty much all proposals I got were boilerplate documents some of which were slightly modified to acknowledge my name and the project. For follow up I picked about 10 companies with near perfect rating and high number of hours billed in the last year.

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Finding a great outsourcing coordinator

About six months ago one of my old friends, VP of Engineering for an East Coast based company, asked me to help him to find a good offshore manager / outsourcing coordinator. That by no means was an easy task and in this case, a not-so-rich relatively small company, it was even more challenging. It took us about two months and few dozens of candidates to find someone who we perceived as a great match. A few weeks later our pick hit the ground running and now, three months after starting the work, he is continuing to exceed our expectations and has proved to be a rock star of an offshore manager. I guess that’s at this point we can give ourselves a pad on a back a look back and see what we did:

First, the task & landscape: the task was to find someone who would manage/coordinates offshore activities for a small product development company. The company’s product, written primarily in Microsoft technologies, has been around for ~15 years and inevitably grew in complexity, size and not so much in quality of code within. Some of the new product development and the lion’s share of maintenance has been outsourced for almost as long as the product development itself. SDLC is a modified waterfall with some elements of agile. The outsourcing team size has fluctuating around average of twenty.
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“Outsource it!” is now in beta

A couple days ago my first full size book went into beta and is now available at the publisher website – http://pragprog.com/book/nkout/outsource-it. I feel very happy and relieved that the book is finally out, writing it was far more challenging than I’ve ever anticipated. At the same time I feel happy and proud, proud to be one of the authors of the pragmatic bookshelf, the group of technology writers that earned respect across very broad and demanding technical audience.

It will take a little while before the book hits the shelves of Amazon and other bookstores, but you don’t have to wait and get your e-copy of it today. While the book is in beta your comments and suggestions would be taken quite seriously and could result in changes and additions to the content, hopefully making the book even better. I am not sure how long the beta would take but hopefully much less than it took me to get here –

Roughly two and a half years ago I came up what seemed a great idea at the time – compile my blog material into an easy to read eBook. In a couple months I produced the first volume that was dedicated to making decisions on whether and how to outsource. In a short order I received substantial feedback that made it apparent that just recompiling the blog and doing surface level clean up won’t add too much value, and probably was not worth the effort. Continue reading

List of Outsourcing Advisors

After my post on outsourcing governance I received a few emails raising the topic of outsourcing advisory. And that prompted me to do a bit of a deeper dive into the world of corporate matchmaking / marriage counseling – helping companies to find offshore vendors and later on help them with governance and management of the engagement.

This field remains huge and profitable and more so, seems to be growing in leaps and bounds. According to one of the leaders in outsourcing governance, KPMG, 70% of outsourcing users want better governance.  That’s not surprising since there many compelling reasons to engage advisors throughout the full lifecycle of outsourcing. The main being obvious – as I often say, outsourcing is a powerful tool but it a complex one and without proper knowledge using of it could be self- destructive; having someone with in-depth knowledge of the tool will spare you some injuries. If you are looking for me reasons consider taking a look at this article.

While doing my micro research I stumbled upon somewhat unexpected problem – I could not find a comprehensive source of companies that provide outsourcing advisory services. After googeling for a couple hours I figured out that a better tool here would be oDesk :) I pinged one of my VAs and she put together a list for me in just a couple days.

Please see below the top ten Outsourcing Advisors from the list based on Alexa rating (probably not the best way to rate them though), in addition you can find more comprehensive list sorted by Name, Alexa Global, and Alexa US.

Hopefully you find it helpful, as usual feel free to suggest new entries, or comment on existing ones.

Name PR Alexa Global Alexa US Description
IBM Global Services
8 446 608 IBM Global Services claims to be the world’s largest business and technology services provider. It has over 190,000 workers across more than 160 countries. IBM Global Services started in the spring of 1991, with the aim towards helping companies manage their IT operations and resources. Global Services has two major divisions: Global Business Services (GBS) and Global Technology Services (GTS). IBM Global Business Services (GBS) is the professional services arm of Global Services, including management consulting, systems integration, and application management services while IBM Global Technology Services (GTS) primarily reflects infrastructure services. It includes outsourcing services, Integrated Technology Services, and Maintenance.
Deloitte
8 6,851 4,965 “Deloitte” is the brand under which tens of thousands of dedicated professionals in independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management and tax services to selected clients.
Gartner
7 8,659 5,056 Gartner, Inc. (NYSE: IT) claims to tbe world’s leading information technology research and advisory company. They deliver the technology-related insight necessary for their clients to make the right decisions, every day -from CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors.
PwC
8 10,816 8,629 PwC firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 158 countries with close to 169,000 people who are committed to delivering quality in assurance, tax and advisory services. “PwC” is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.
Ernst & Young
8 13,374 8,634 Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, their 152,000 people are united by their shared values and an unwavering commitment to quality. They make a difference by helping their people, their clients and their wider communities achieve their potential.
Capgemini
7 16,622 4,942 A global leader in consulting, technology, outsourcing, and local professional services.
McKinsey & Company
7 17,418 15,185 McKinsey & Company, Inc. is a global management consulting firm that focuses on solving issues of concern to senior management. McKinsey serves as an adviser to many businesses, governments, and institutions.
KPMG
7 18,567 13,291 KPMG operates as an international network of member firms offering audit, tax and advisory services. We work closely with our clients, helping them to mitigate risks and grasp opportunities.
Boston Consultant Group (BCG)
7 37,830 23,291 BCG is a global management consulting firm and claims to be the world’s leading advisor on business strategy. They partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises.
Bain & Company
7 40,359 28,581 Bain & Company is a global management consulting firm headquartered in Boston, Massachusetts. Bain is considered one of the most prestigious consulting firms in the world, with 47 offices in 30 countries and over 5,500 professionals on staff globally.

Outsourcing Governance

A couple days ago I received an email with a very interesting question –

Hello Nick,

I have come across your blog (http://pragmaticoutsourcing.com) while doing some secondary research.

I have been quite impressed after reading your blog, and hence writing to you to seek your pro bono help :)

As you have such a good depth and breadth of outsourcing experience, I would like to seek your opinion on this:

– Many Companies who Offshore their IT/Product Development to Russia, India, China, etc. face many challenges during the projects execution phase. They spend significant management overhead in managing their vendors. They may need to make multiple trips to the outsourced location to resolve issues. So there are significant costs/pains involved
– Would such Companies like to hire third-party consultants, who work as their agents and be physically present with the suppliers, does the Program Management function (tracking of projects, timelines of deliveres, identifying and sharing potential issues/challenges, metrics reporting etc.) and help reduce the costs/pains of managing the outsourcing vendor?
– Would such Third-Party Consulting services be attractive to Companies who Offshore?
– If No, Why?
– If Yes, Why? Do you know of any company providing such Consulting Service?

Your opinion would be highly valuable to me. I am eagerly waiting to hear from you.

Thanks,
Sujay

Yes, Sujay many companies can take advantage of these kind of services and providing them could present a very interesting and lucrative opportunity. As a matter of fact many companies are already in this business and offer large portfolio of services related to managing the full cycle of outsourcing (not necessarily only offshore) engagements.

Continue reading

Trip to blogosphere

Outsourcing is a very broad topic with plenty of controversial topics, inevitably there plenty of people who have something to say about it. Chances are if you are interested in this subject you run across articles and posts by Outsourcing Institute or Horses for Sources. A couple years ago I put a few references in my blogroll and started a blogosphere directory. Thanks to the law of reciprocity that generated a few back-links and traffic to my blog. Over time the blogroll become stale pointing the blogs that become dormant or completely disappeared. I did not notice it till just recently, as I was doing some cleanup of the blog.

Similar to my freelancing directory the blog roll needed to be refreshed. In addition to cleaning it up I decided to create an outsourcing blog “directory” as well. And with no hesitation I went on blog hunting with a help of my fearless VA Yesha, looking for blogs that cover outsourcing. Very soon we had a list with more than 100 entries, unfortunately, many of them covered topics that I am not too familiar with and/or not too interested in such as Law Process Outsourcing or blogs solely focused on BPO. So we went back pruning the list getting it to less than 50 entries. Some of the blogs that got the ax were fairly active in outsourcing blogosphere, and I may include rejected entries in the list later on after I get a chance to check a few posts and see whether they are worth considering. Of course what’s one man trash is another man’s treasure, so “worth considering” is a very subjective term. Plus in any blog the posts are typically hit-or-miss, and even loosely related sources can put some interesting article once in a while. Well, I cannot create full directory, even with help of a couple dozen of Vas, that’s why we have omnipotent Google.

Anyway, please see the list sorted by URL of the blog on this page. To make the list a bit more helpful I added PR and Alexa ratings in the same manner as in my freelancing marketplace directory and created two additional versions of the list, one sorted Alexa Global and another by Alexa US. As usual, feel free to comment and suggest new entries. I am planning to update the list in ~12 months from now.