

We’re literally spending millions more than we have to and I don’t want to go to another executive meeting without options” said the VP. They could expand this operation to include software development too, but they did not want to tackle the challenge of Agile development with a 13 hour time difference. In fact the company already had an operation in India for business process outsourcing like data entry. The CTO & VP knew about both offshoring and outsourcing and weren’t thrilled about either. “Why are we spending all this money on product development?” he barked in one executive management meeting. Then the Silicon Valley company hired a new CFO. But it was also very expensive – not only the cost of developers but also the expensive layer the outsourcing firm required to manage the outsourced team. Outsourcing to San Francisco!? It seemed like the safest approach to building a development team quickly. They rebuilt the software engineering team by hiring directly and also using a “boutique” software outsourcing company from San Francisco.

The new CTO and VP of engineering then fired most of the developers who had been recently hired out of desperation rather than their software development skill. Finally management had enough and they fired the VP of Engineering. Their product development schedule kept slipping because of an inability to hire enough developers. This company is in Silicon Valley and had a rough couple of years. Here’s a good example of a company that rushed into outsourcing only to have to change course later. You can easily spend several months to ramp up an outsourced software development team. Take outsourcing your software development. That’s because it takes time to implement significant changes that will save you money.ĭon’t wait until December to consider your options.

Now is the time to start thinking about your budget for 2016. This post originally appeared on The Accelerance Blog
