Author : Nick Krym

Pros and Cons of doing business in China

From 30,000’ view Pros and Cons of giving your outsourcing business to China could be summarized as Pros Comparatively low rates Low attrition rates Large pool of talent in many areas Superb work ethics of the workforce Well organized / highly disciplined organizations Staff’s desire to succeed (learning and becoming stronger professional rather than pure career move) Flexibility of the contract arrangements Cons Poor English skills Weak grasp on western communications style, wide cultural gap Poor theoretical knowledge in many key areas Weak technical skills in comparison to the mainstream Silicon Valley resources Limited access to resources in several key areas (e.g. business analysis, architecture) […]

Protecting Data and IP when Outsourcing Offshore

What can you do to minimize / mitigate risks of IP loss with your outsourcing partner? Here are some tips to consider: General Learn, understand and keep yourself up to day on Information security topics Do not outsource your crown jewels. If it’s at all possible do not send any high value IP work offshore. Hold the offshore vendor, its employees and subcontractors to the same or higher standards of Data and IP security as your own team. Vendor search / RFP process Include IP handling inquiries in your RFP process and in on-site visits Consider legal maturity and IP laws from geopolitical view Check […]

Top outsourcing risks

Putting development of your product or any other aspect of technology in the hands of a third party is certainly a risky proposition. To properly mitigate the risks of outsourcing one needs to understand the outsourcing landscape quite well. The top offshore outsourcing risks fall in several main categories. There is much to be said about each of the categories; I am planning to add more substance / clarifications /examples to each of the bullets below, as well as some ideas on risk mitigation. For now, here is the high level list: Geopolitical Government regulations, on the both sides of the equation Political stability Legal […]

Not yet ready for China

I love travel and visit new places, even if that’s on a business trip. Needless to say that living “5 to 7” lifestyle (by 5 am Monday you are on a plane to the client and ~7 pm on Friday are back on your way home) grows old quickly, but my engineering leadership role delivers travel in just the right amount. So I was quite excited when I got a chance to go to China to meet with a few promising offshore outsourcing companies. Impressed by meetings with vendors’ execs I was looking forward to starting with one of their teams in China. Jumping ahead, […]

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 […]