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.
How is outsourcing going to change in 2015? Outsourcing industry is a large ship that won’t turn on a dime, yet various forces have been reshaping the industry for quite some time and results are becoming more obvious every day. Certain trends ought to be followed as the landscape changes to accommodate new demands from individual consumers and businesses alike.
The strongest forces that shape the outsourcing industry include technology advancements such as raise of AI, cloud technologies and advanced robotics and automation. Another group of trend setters is related to political changes in the world, increasing standards of living among IT population of common supplies of labor in that sector – India, China and Eastern Europe.
Re-shoring, rural sourcing and near-shoring will grow
Regional providers are taking the stage, as the re-shoring trend is emerging strongly. While global outsourcing still maintains its position, local and nascent players will increase their reputation and take larger chunk of the market utilizing near-shore advantage in addition to cost effectiveness and productivity.
More tools, processes and systems will move to the cloud
More intelligent apps, software and agents will be implemented in the cloud, to make everyone’s job easier. Clients and providers will meet on this common ground in 2015. Labor will be seen more and more as a service, following in the footsteps of this trend. Cloud offering of services akin to Amazon’s Mechanical Turk is going to pick up pace as well. Continue reading
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.
I’ve been off my blogging duty for almost a year; needless to say the blog has lost some of its pooling power, traffic, and most important its up-to-date-ness. And even though my focus has never been on “current affairs” and most of the content here is not very time-sensitive I owe to myself and the audience some serious housekeeping / refreshing. The first task is to revise the blogroll – most permanent battery of links on the topic. Unfortunately some of the blogs I used to enjoy are no longer active and some do not even exist anymore. The good news is that some of the old-timers are still going strong, and there are a few new ones with interesting content.
So RIP “Go East – Outsourcing to China”, “Offshore Outsourcing Center”, “Offshore Outsourcing to China”, “Offshore Outsourcing World Blog”, “Shared Services & Outsourcing Network”, “Software Sweatshop”, “The Dao of Outsourcing”… These blogs no longer exist or have moved on to a completely new topic. Sadly, a lot of casualties; and some really interesting material is no longer available.
It looks like a few blogs are dormant or reached the end of life such as “Services Shift by Robert Kennedy” but given that some good data / info is still there I may keep some of these links.
And the good news is that nature abhors a vacuum and thus we have an opportunity. Either my blog will become wildly successful again or we’ll see even better blogs coming up soon enough.
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
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.
As I mentioned in At Doorsteps of a New Engagement I have a new vendor to deal with. It is a company that has been working with my team for over two years and thus it’s only new for me. It took about a few days for me to encounter the first set of issues. And that set came from the area so common that it’s worth a post by itself – software environments. Below is an email which I was cc’ed on –
Subject: RE: WCM Publish failed
Please explain to me how the production environment does not match what is in UAT. This is unacceptable and must stop. This is not the first time a production turnover did not match UAT.
We need to review our build, turnover, and documentation procedures. This pattern cannot continue.
Looks familiar? I am sure it is…
If you are in business of delivering software as a service or similar to it the chances you will have the following environments: development, QA, staging, production, disaster recovery. You may also have dedicated environments including Build, UAT, Sand Box(es), Performance Lab, etc. If you work with offshore team the chances are some of those environments are duplicated in the offshore offices.
A number of issues arise as environments proliferate: