Author : Nick Krym

Offshore productivity: developers

Why is offshore developer’s productivity so much lower than one from your local employees? You would expect that for positions that require high communication overhead or for those tightly linked to difficult to acquire domain expertise, but why developer? Java, C#, C/C++ know no borders and far more international than Esperanto ever aspired to be. So why do we habitually see offshore developers offering productivity at fraction of what we expect in-house. I think there are many reasons for that, some transient some foundational. Here are just some of them, specifically applicable to India outsourcing: Bangalore is a beautiful vibrant city; in some strange way […]

Outsourcing Myths: cost advantage

On a surface that seems obvious: even with dollar fall, rising cost of living in India, China and especially eastern Europe the hourly rates continue to be much lower than those you have to pay in the states. For example, a mid level java developer would roughly cost you: SF Bay Area, full time $60/hr SF Bay Area, contractor $80/hr Bangalore, India $25/hr St. Petersburg, Russia $30/hr Shenzhen, China $20/hr So for every contractor in your San Mateo office you can put 4 in Shenzhen or 2 in St. Petersburg. Or, looking from savings angle, instead of paying a team of 8 engineers roughly $80K […]

Top reasons for outsourcing

Whenever I have to introduce using offshore to executives I start with a slide with has title “Good reasons for going offshore”. The slide is otherwise empty. With all the headache it will cause why would I go offshore if I do not absolutely have to? I have been using offshore vendors since ‘92 and there is no place on my body which doesn’t have scars left by that experience – from grotesque stabs on the back to burned fingers. And yet again and again I find myself using offshore vendors and recommending them to my clients and partners. So what are the main “bad” […]