6 Tips on Offshore Outsourcing For Startup Business Founders

Over the last 3 years roaming in the startupend to end outsourcing life cycle. Many are common
community, I met a lot of people in the followingbusiness practices, but few specifics apply to offshore
situations.engagements like labor rates, project management
"I have a web 2.0 business idea." "I don't code so I amwith remote teams, and cross cultural communications.
more on the "business" side of thing." (Frankly allI recommend this book, The Outsourcing Handbook.
non-techie founders said this) "I am looking for a CTO3. Be as clear as possible with your requirements and
to prototype my idea so I can raise $5 million dollarsprovide many reference samples. Although it is difficult
from VC." "But so far I havn't found the right partnerfor startups because ideas are immature, try to define
yet" (it means haven't found anyone who wants tofeature requirements in small intervals and avoid long
work on a bad idea for free) "And I can't hire full timesoftware development cycles. You should also
programmer now so should I outsource to India?"communicate your visionary product road map to the
For startup founders with business background,offshore team so that they take future scalability into
offshore programming is a great solution to get cheapconsideration.
engineering done for an early stage idea. However,4. Hire local User Interface designer to help. I have
most of these startup projects failed becauseseen many offshore software projects failed because
founders have no experience managing outsourcedof user interface issue. UI design is a specialized skill
projects. Problems come in 4 steps.a. Founders havethat is heavily influenced by local cultures. The usability
no real experience managing software projects toacceptance is very different between Americans,
begin with.b. Because founders are inexperience inIndians and Chinese. You should consider hiring a local
software development, they rely on offshore vendor'sUI designer / consultant to mock up your application
advice and technical expertise to drive the most criticalbefore coding. Not only your product will have better
early stage development.c. Founders' ideas arelook & feel fitting local style, but you also help
constantly changing with new market feedback whichoffshore developers visualize the application before
result in frequent change of software requirements.d.they code. It greatly reduces offshore project risks.
Finally changes are not communicated properly to the5. Hire dedicated offshore developers. It may not be a
offshore team due to time, distance, language barriersbad idea to consider hiring dedicated offshore
and cultural differences. Project falls apart, relationshipprogrammers for a few month to develop your early
sours and engagement fails.stage idea. Dedicated developers work on the time
Here are a few ideas startup founders can follow to& material basis. They are like your virtual
improve the success rate of their offshore softwareemployees who are full time for you. This way, you
development projects. We will disregard feasibility ofcan work with the developers as ideas are refined. It
the startup idea for now and purely focus on tips todoesn't lock you down to specific development
help startup business founders to execute offshorerequirements. The total cost of project can be lower if
programming works.executed properly. You should consult with your
1. Pick up your software development knowledge. Foroffshore vendor to put together a team for you with
founders with absolutely no computer sciencethe right skill set, domain knowledge, team size and
background, it is a good idea to burn through a fewhiring period.
books on principles of software development. It is6. Be extremely patient. Patience always pays off in
useful to at least learn how to analyze work flows,any offshore software development projects.
read use case diagram and understand why theyRemember things will almost always take twice as
impact the entire system design. I recommend thislong to finish than anticipated. You have to spend a lot
book, UML for the IT Business Analyst.of time communicating with the team and regularly
2. Up your knowledge on offshore outsourcing. Sameprovide detailed feedback on their work progress. Do
applies here. Founders should also increase theiruse visual graphs, screen shots, and photos to help
knowledge on offshoring, especially offshore softwareexplain your points. You are in the business to build
development. They should understand the processlong term relationship. Patience and persistence with
involved in defining outsourced project requirements,your offshore partner will pay off in the long run.
selecting vendors, evaluating proposals and managing