product development

Outsourcing With Care

outsourcing software outsource

Challenges of international outsourcing

Many tech entrepreneurs face the question of whether to outsource software development to a foreign country. After all, there are good coders in countries like India, Russia and Argentina, while U.S. developers are quite pricey in comparison. But managing a team or project from afar can be quite challenging: communication often gets lost in translation and cultural differences; accountability is diluted across borders; pop-ins are not possible; contracts are harder to enforce; IP issues can come up; and even quality might not be as good as you expected. Here are a couple of simple (but often neglected) steps one can take to minimize risks.

Dealing with international outsourcing

First, make sure you consider firms or developers that have been referred by a client you know and trust. Don’t just pick a developer on Google or let yourself be lured by pretty emails selling outsourcing services. My LinkedIn inbox often gets messages from Indian and Russian developers offering their services. Maybe they are good, who knows, but I wouldn’t risk it. Client referrals are especially important when dealing with international suppliers in general. Ask a lot of questions to the referrer, such as how the developers deal with deadlines, if their English is good, if different time zone was an issue, how they heard about them in the first place, besides of course the quality of the job.

Second, before starting the work, have a face-to-face meeting at least once. Maybe your guy will come to the U.S. for a conference or to visit a client. Or, better yet, catch a cheap red-eye flight and go spend a couple of days with them. Meet the team, check out their office (garage?), go out for lunch, have a vodka (or whatever they drink) together. If the job is at least a five-figure commitment, visiting them is a relatively small investment and it will pay off. Despite Skype and all, in today’s world it is still important to shake hands once in a while, make things more personable. Putting a face to the partnership can help mitigate risks in the future and improve crisis management.

Don’t underestimate the complexities of outsourcing development to a foreign country. Knowing who you are dealing with, both through others and your own contact, is extremely important. An outsourcing job gone bad is hard to fix. Exit costs are high and transferring work to a new team may be difficult, if not impossible. If you don’t outsource with care, as we often say it in Brazil, “what’s supposed to be cheap becomes very expensive”.

See also An idea is Just That – Not Yet An InnovationImage: blogandretire.com

What’s your experience with software outsource? Leave us a comment!

With Disruptive Innovation, Customer Is Not Always Right

disruptive innovation

Disruptive innovations and customer feedback

A recent study by ChubbyBrain.com listed the top 20 reasons why startups fail. The #1 reason, ahead of funding, product quality, pricing and other popular ones, was “ignoring or not seeking customer feedback”. However, there are two sides to this.

If your company is launching a disruptive technology, or a at least a truly innovative product, and you really believe in it, taking initial customer feedback at face value may not necessarily be the best way to go. A classic example is the walkman. When Sony was building the product in the 1970s it reached out to potential customers to learn what they thought of it. The most common reaction was to say that the walkman was a stupid idea! Who would walk around listening to music, instead of enjoying it while sitting back in the couch? How would you run errands or even jog with “speakers” on your ears, not hearing what’s going on around you? Had Sony been discouraged by this feedback, it would have probably discontinued the project and missed out on this huge hit.

If not a disruptive innovation, follow the rules

Now, if your product, like the vast majority, is not starting a new market or doesn’t require change in attitude or lifestyle, then of course the story is different. You should adapt to your clients as much as possible, not expect them to do so. This sounds intuitive, but many entrepreneurs (including myself in the past) think their product is so great that the problem, really, is with the rest of the world that doesn’t want it the way it is. Distancing yourself from your “baby” and taking client feedback into consideration is fundamental, both in the product development stage and thereafter.

At the end of the day, it is a judgement call. Do you believe so much in what you are doing – and how you are doing it – that you are willing to risk ignoring customer feedback? Are you breaking a paradigm of sorts to expect to be right over the majority of people you are supposed to serve? Only a very small percentage of startups would fall in this category. If you are one of them, you will have an uphill battle to change people’s behaviors; but one that can have a huge payoff.

See also Not All Angel Investors Are From HeavenImage: pocketcalculatorshow.com

What’s your experience with disruptive technologies? Leave us a comment!