Quality Outsourcing
Hey...How are you all?
Well i want to discuss here general IT question Quality outsourcing.
YOu all know well that outsourcing been important today...that okbut at resonable price only? what should not we also have find quality with price...
Start posting here whichever online resources you know that provide good quality outsourcing...
Comments
For the most part it comes
For the most part it comes down to the old adage "You get what you pay for".
Quality outsourcing usually costs more than what in-house expertise does. The advantage is, you can purchase outsourced work/skills only when you need them without long term commitments. If you have an ongoing need for a certain skill set, then you are usually better off in the long run making a permanent hire.
Cheap outsourcing usually is cheap because it cuts corners usually by utilizing lower skilled workers. Often there are cost over-runs, schedule slips (time is money), quality problems (which usually cost more to fix than doing it right the first time) or other issues which if they don't outright end up costing more money often mean the savings isn't what people thought up front.
Now, don't get me wrong... Outsourcing can be the right decision depending on the circumstances, but like anything else, it is not a panacea and it is something that should be carefully planned and due diligence should be executed when selecting outsourcing partners/providers.
One widely-used rule for
One widely-used rule for determining compensation is to use:
Most companies seem to value them equally; I've seen others that will credit one year of education for two years of experience. (For the sake of discussion, let us count only degrees from accredited U.S. colleges and universities.)
For example, I have 10 years of education and 14 years of experience. Even in this down economy and practicing "value pricing", looking at my salary history and market rates, I realize that I should earn no less than $150K/year ($75/hour) as an employee (using IRS form W-2) with good benefits. Contractors generally add 50% to cover costs of supplying their own employment tax (7.5% right there), benefits, office, equipment, etc., so that puts me at $112.50/hour for 2000 hours. If a client wants to hire me for a shorter term, I need to factor in my costs of lost opportunities due to the effects of schedule segmentation (clients' schedules not aligning to provide me constant employment), so that means I should add about another 50% (depending on the length of the contract), putting my full-time equivalent (FTE) rate (of a $150K annual salary) at $168.75/hour. I know that may seem high, but it's actually a pretty fair rate for average engineers around here.
With much of what I do, I am a top 1% performer, and often get called in to fix big problems on short notice. If I've got nothing else on my plate, I often don't mind working cheap (though it hardly helps to differentiate me from less-capable engineers). But, if I'm already on a job and am the only person that can fix someone else's problem (and, believe me, this does happen pretty often), then I need to buy off the client that scheduled me first, which can increase my rate to the new client by 1.5 to 2 times. In those situations, at $337.50/hour (or more), I can often be a lifesaver and thus a good bargain. But, it's often more cost-effective to hire me long-term from the start at $112.50/hour so that certain errors don't get introduced in the first place.
That brings me to the subject of qualifications. Education can be a good place to start, but I've known graduates (in many fields) that really don't know what they're doing. (As a professional, I try and disclose this to my clients when necessary as tactfully as possible.) Look at the person's resume for signs of innovation, such as what he or she made or did that was a "first" or "best". How many were there? Then (and this is important) look for signs of truthfulness by asking how that person did what is claimed, and how much the individual contributed.
If you like, contact me directly for a free initial consultation.
- John
So how do we convince the
So how do we convince the PHBs that it is worth paying an American the kind of rates you are talking about vs. the $12-15/hr that offshore vendors are talking about as billing rates for Indian PhDs? I understand what you are saying in a crisis when they need someone on site right now, but if that is the only time Americans can get a foot in the door, its going to be really "feast or famine" for us over here in the future.
What's a PHB?
What's a PHB?
It is a "Dilbertism"...
It is a "Dilbertism"... Dilbert's boss is known as the "Pointy Haired Boss".
Generally it is used to refer to the less clueful type of managers. And it shouldn't be construed to be taken as representative of all managers. Non-PHB managers generally wouldn't have to be sold as hard on the value of hiring Americans because they see more than just the low hourly rate of cheap off-shore labor.
Our company is in that
Our company is in that market space.
Well sort of ...
Meaning, our business model is different but we borrow from all the models and utilized the best offerings from each of thier strengths ... outsourcing, offshore, onshore, augmentation ...
We have helped start-ups and companies with 5-10 employees and fortune 100 companies with 500+ employees ...
Agreed, you get what you pay for !
But that does not mean you can not find great "IT quality outsourcing" at a reasonable price.
We have also help out the Venture Capital and Angel Investors with acessing the budget for start-ups request for IT outsourcing.
We can be on-site or virtual with our own resources and we speak english, ;-)
Likewise, we have clients that want more control and we provide a deliverable / time & materials contract too.
So we can hit on all of the pressure points with regards to "outsourcing" your IT requirements.
Pricing ? We are very competitive in the market space, any of our past and current clients will speak highly of our services and the value we bring to the project.
Timeline ? Some of our projects are time sensitive, "need it yesterday", we can ramp up and pull resources accordingly, so long as it realistic, our usual metrics is 20-30% savings on any development timeline.
I just wanted to address the comments about you get what you pay for and let others know that there are great companies doing quality work less than the high market and inline with outsourcing prices.
Respectfully,
michael