ResourcePad Blog

I recently read an interesting bit of news, here and it really just shows how far the Internet has come for the next generation. Basically, the link outlines the life of a 17 year old girl who started a multi-million dollar business (generated primarily through Google’s Adsense) by designing MySpace themes which became such a lucrative idea (the website gets 7 million hits/month and is ranked higher than websites like cbsnews.com, americanidol.com and even oprah.com) that former MySpace boss Brad Greenspan, offered to buy the site for a close to $2 billion…twice. Both times, he was turned down.

The website exists on the principle that it’s been created for teenagers by a teenager, and to this effect has been used as a marketing gimmick for promoting new music bands and vocal talent, via a video widget on the site.

This just shows how far we’ve come in a decade, from the failed dot-coms to the teenage entrepreneurs, from internet chat rooms to major social networking portals, from offshoring on a local and small scale to a worldwide phenomenon.

I’ve been reading up on a few forums, and have come across this question several times: why should I outsource? ResourcePad already has a set of articles written by no doubt, many professionals who have had experience in the field, negative or positive, but to sum it up: it saves you time and money. Of course, this isn’t always the case, but there’s a 70% chance that you’ll benefit. Before you decide to outsource, realizing just what you’re going to do is important, since there’s nothing more frustrating for vendors than a client who isn’t sure of his/her requirements.

AT Kearney sees the future of IT in outsourcing, and with politicians touting globalization the world over, it won’t be unsurprising. Especially taken into account the growing importance of social networking sites and virtual worlds — it makes managing projects with people in different countries that much simpler — something like an effective project management tool and alarm system all rolled up in one. With the introduction of Linked In, and other job networking sites, the chances of finding a reliable outsource provider is no longer the daunting task it was before. With websites like Elance, Guru, oDesk, etc., things are only going to get easier with time.

So if you’re asking why you should outsource, let me ask you why you shouldn’t?

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As long as owners are involved in the project everything goes well, as soon as the project is handed over to a project manager or a team lead, there are problems all over the place starting from communication to plain careless mistakes. A lot of bootstrap startups have this problem, especially in India and Paksitan. Why don’t employees take as much ownership as the owners? How can they be made to take ownership?

One of my friends, who has an offshore development center in Bangalore, was in England last month. For one of the projects he asked his project managers if everything is well and if things are done as per the client’s specifications. He was told that everything was fine and that the client is happy. So he scheduled a meeting with the client and also gave him an invoice for the work done. Not only this, he mentioned this client as a reference to his new clients in England. It turned out that the client was not happy at all, and that there were lots of bugs in the application and the programmers have been working for days but they haven’t been able to fix much. This was a total disaster primarily because he had already given the reference of this client to his other new customers. The reason for this mess up was not that programming was messed up, but rather the fact that he was kept in dark about the original situation of the project. This is because the team never took the ownership of the project.

One of the main reasons a team may not take ownership is because the team usually doesn’t know what depends on the project. They usually don’t have the big picture of a particular client and a particular project. A project may be a pilot project to be followed by a lot of other projects. Also it may be so that the client is very influential and it’s good to keep him happy. These things are quite difficult to explain to a team lead or a project manager. An easier approach would be to ensure that someone is ultimately responsible for a project no matter what happens. This is so that no blame can be shifted and someone knows who’s responsible for the entire project. For example, a project manager should be responsible for everything in the project: from specifications to quality assurance, maintaining scope and making sure that the project doesn’t exceed budget. In most cases, people need just one person to take owners, rest of the people will take ownership themselves. Also for any top level manager, the main idea is to ensure that projects are completed in timely manner with reasonable quality. To ensure this, someone has bear all responsibility for the success as well as the failure.