Outsourcing Quiz: Cheap Vs. Good

Someone can say, 'Why do you oppose this?' So I'd like to prevent such attacks and tell that this article is dedicated mainly to the issue if it's worth to look for the cheapest solution.

Software and web development market is overwhelmed nowadays. Hence, as soon as there is a possibility to get something for nothing the usual approach in search for developers is a choice of the lowest price. The logic is understandable enough, 'Why should I pay $1000 for this bit of software if I can find somebody that will develop the same for as much as $200?' Is it true? I bet it is.

Anyhow, think once again about the phrase 'something for nothing'. Do you really believe it's possible? If you really think so, I'd suggest you should consider several issues while picking up a developer.

1. You are paying for what you are getting.
Normally, any developer will charge you on a basis of the total man-hour they need to complete the project. Talking about offshore development will let us take the price of $8-$15 per man-hour as a base. So any project's price consists roughly of these two elements. Should you want to get a lower cost, you should either negotiate the lower hourly rate, or find people who need less time to develop the application. However, as soon as you won't fall lower than $8 at any Indian company (not prestigious enough to charge extra money for quality insurance etc.), let's look for somebody who needs just less time.

2. People can do as much work per hour as they can.
It's obvious, different people have different efficiency. So if it will take just 2 weeks to develop a simple application for some programmer, it can take several months to do the same for another one. It's logical, professionals charge more for their services. In return they can develop things other programmers can't make for you even for the less money. But keep you brain cool. Even the best programmer is not a speedy typist. Typing of code, in addition to its design and development, also takes some time. So don't demand programmers to develop something in a day just because you believe the task is simple.

3. Someone's told you he can develop it two times sooner? Ask him what exactly he'll do?
As I've already told, definitely, there is a great lag in programmer's capacities. However, the speedier the programmer is, the more expensive his services are. Surely, there are some ways to shorten the development time. They are:

  • Usage of existing open source software.
    Although, some products are just great, don't expect continuous support and the developer's awareness of how everything works within his product.
  • Denial of the code's optimization necessity.
    There are situations when e.g. web based software refuses to work properly on servers just because it consumes too much server resources. Why? It's mainly because the code is clumsy and under-optimized. The more quality code takes more time.
  • Absence of any single line of comments in the source code.
    Commenting of the source code takes time but doesn't impact on the final product. Surely, you can get such product and be happy with it. However, should any bug happen, it will take astronomic amount of time to find the proper line and change it even for the original developer. As for another programmer, it would be in most cases almost impossible.

So consider all advantages and disadvantages once more. You have a choice of paying e.g. $1000 to a reliable company that can't afford to provide you with a poor quality product; hence, it does everything to make it properly. Or you can spare about $800 and get running, however unstable software without comments and under-optimized enough for its best performance. Surely, it's up to you what you should choose.

And again, there is no equivalence between "cheap" and "bad quality", as well as between "expensive" and "good quality". However, if somebody offers you just unreasonably low price, make sure that at the end you will get not just an imitation but the product you actually need.

Alex Polonski is a Senior Sales Manager at XITEX Software Company, Ukraine. The company works in offshore software development market since 1999 and has a fair expertise in J2EE and .NET technologies. Among company's own-developed and marketed solutions, one can see a J2EE content management system, Xitex WebContent M1.

In The News:

Yahoo! News: Top Stories

Palestinians survey a kindergarten destroyed after an Israeli air strike in Gaza January 8, 2009. (Mohammed Salem/Reuters)AP - The U.N. Security Council called for an immediate cease-fire in Gaza, but an intense bombardment of missiles from Israeli jets and helicopters early Friday and a barrage of Hamas rockets indicated there may be no quick end to the fighting.



Rep. Jack Franks (D-Woodstock) votes to recommend the impeachment of Illinois Gov. Rod Blagojevich to the House during an Illinois House Impeachment Committee hearing Thursday, Jan. 8, 2009, in Springfield, Ill. The committee voted unanimously to recommend impeachment putting the matter before the full house.  (AP Photo/Seth Perlman)AP - Gov. Rod Blagojevich faces almost certain impeachment by the Illinois House, a historic step that would trigger a trial to determine whether the Democratic governor should be tossed out of office.



Pay Equity pioneer Lily Ledbetter addresses the Democratic National Convention in Denver, Tuesday, Aug. 26, 2008 file photo. Democrats are ushering in what they believe will be a new labor-friendly era in Washington with House votes on two bills aimed at helping women fight pay discrimination in the workplace. The House was to vote on the bills Friday Jan. 9, 2009, and they could reach Barack Obama's desk soon after he enters the White House.  One of the bills, the Lily Ledbetter Fair Pay Act, is a response to a 2007 Supreme Court decision that made it more difficult to sue over past pay discrimination.  (AP Photo/Ron Edmonds, FILE)AP - Democrats are ushering in what they believe will be a new labor-friendly era in Washington with House votes on two bills aimed at helping women fight pay discrimination in the workplace.



A sign instructs job seekers at the California Employment Development Department in Sunnyvale, Calif., Tuesday, Jan. 6, 2009. The country lost nearly 2 million jobs through November and more bad news is expected this week when the government releases data on weekly jobless claims and December unemployment. No matter how bad those numbers are, and economists expect at least another 500,000 jobs were lost last month, the pain is stretching into 2009.  (AP Photo/Marcio Jose Sanchez)AP - Trying to survive a deepening recession, employers are cutting their work forces to the bone, leaving more Americans unemployed and with dim prospects of finding a new job any time soon.



In this Monday, Dec. 29, 2008 file image provided by Greenpeace, coal ash slurry left behind in a containment pond near the Tennessee Valley Authority's Kingston Fossil Plant is shown  in Harriman, Tenn., after the dyke at left broke Dec. 22, 2008. Millions of tons of toxic coal ash is piling up in power plant ponds in 32 states, a practice the federal government has long recognized as a risk to human health and the environment but has left unregulated. (AP Photo/Greeenpeace, Wade Payne)AP - Millions of tons of toxic coal ash is piling up in power plant ponds in 32 states, a practice the federal government has long recognized as a risk to human health and the environment but has left unregulated.



In this Dec. 5, 2006 file photo, Leon Panetta, then a member of the Iraq Study Group, walks into a Washington hotel.    (AP Photo/Kevin Wolf, File)AP - President-elect Barack Obama is completing his national security team by announcing his unusual choices for CIA director and a national intelligence director who may face tough Senate confirmation questioning over how he confronted the Indonesian military when civilian massacres were occurring in East Timor.



In this Dec. 1, 2008 file photo, Defense Secretary Robert Gates, second left, speaks as Vice President-elect Joe Biden, left, President-elect Barack Obama; and Secretary of State-designate Hillary Rodham Clinton, far right, listen at a news conference in Chicago.  (AP Photo/Charles Dharapak, File)AP - Just minutes after George W. Bush took the oath of office eight years ago, he signed papers formally nominating 13 Cabinet-level officials. Several hours later, the Senate, meeting in a special Saturday session, confirmed seven Cabinet secretaries, including the heads of the key posts at State, Treasury and Defense.



US President-elect Barack Obama speaks on the economy at George Mason University in Fairfax, Virginia. Obama proposed tax cuts and a green energy push to avert economic disaster, but drew a skeptical reaction in Congress to aspects of his huge stimulus package.(AFP/Mandel Ngan)AP - Lawmakers are under orders to finish action on President-elect Barack Obama's nearly $800 billion economic recovery plan by mid-February. But already it is plain that a set of serious fissures need to be bridged if the bill is to be completed within five weeks.



Freida Pinto backstage with the best picture award for 'Slumdog Millionaire' at the 14th Annual Critics' Choice Awards on Thursday Jan. 8, 2009 in Santa Monica, Calif. (AP Photo/Dan Steinberg)AP - The critics have spoken, and "Slumdog Millionaire" is their final answer.



Florida coach Urban Meyer is doused during the fourth quarter of the BCS Championship NCAA college football game against Oklahoma in Miami, Thursday, Jan. 8, 2009. Florida defeated Oklahoma 24-14. (AP Photo/Lynne Sladky)AP - The game defied expectations. Tim Tebow fulfilled them. He rescued No. 1 Florida, running through and throwing over No. 2 Oklahoma for a 24-14 victory Thursday night that gave the Gators their second BCS championship in three years.



Jaclyn Holt (R) fills out an application form at a job fair organized by the New Hampshire Employment Security agency in Salem, New Hampshire December 17, 2008. (Brian Snyder/Reuters)Reuters - U.S. employers probably cut the most jobs in at least 34 years last month as the global economic crisis gathered pace and moves by policy makers took time to filter through to struggling companies.



An Israeli soldier covers his ears after firing a mortar mounted on an armoured personal carrier (APC) towards Gaza from its position outside the northern Gaza Strip January 9, 2009. (Yannis Behrakis/Reuters)Reuters - Israel pushed ahead with its two-week-old offensive in the Gaza Strip, ignoring a U.N. Security Council resolution calling for an immediate ceasefire.



Reuters - A report being released on Friday alleges that the U.S. Treasury has failed to reveal its strategy for stabilizing the financial system, not answered questions asked by a government watchdog, and has done nothing to help struggling homeowners, the Wall Street Journal said.

A man works near a pressure gauge at a district heating plant in Skopje January 8, 2009. (Ognen Teofilovski/Reuters)Reuters - Europe sought a swift restoration of gas supplies on Friday after striking a deal with Moscow on monitoring gas shipments via Ukraine that have been halted by a pricing dispute with Kiev.



People taking the Long Island Foreclosure Tour arrive at a foreclosed home for sale in New Hyde Park, New York in this May 17, 2008 file photo. Citigroup could soon agree to principles that would let troubled borrowers save their homes through bankruptcy, sources familiar with the talks said on Thursday, while industry groups are easing their opposition to the plan. (Shannon Stapleton/Reuters)Reuters - Financial giant Citigroup Inc will support a proposal in Congress to rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, Chief Executive Vikram Pandit said on Thursday.



Illinois Governor Rod Blagojevich gestures as he announces former Illinois Attorney General Roland Burris as his choice to fill the vacant U.S. Senate seat of President-elect Barack Obama during a news conference in Chicago, Illinois December 30, 2008. (Frank Polich/Reuters)Reuters - A legislative committee on Thursday recommended the impeachment of Illinois Gov. Rod Blagojevich, citing widespread abuse of power including allegations he tried to sell the U.S. Senate seat vacated by President-elect Barack Obama.



Timothy Geithner (R), pictured in Chicago, November 24, 2008. (Jeff Haynes/Reuters)Reuters - President-elect Barack Obama's economic team is urgently overhauling the $700 billion financial rescue package to broaden its scope beyond Wall Street, The Washington Post reported on Friday.



Usama al-Kini, Al Qaeda's operations chief in Pakistan, is pictured in this undated FBI Most Wanted photograph. Al-Kini, also known as Fahid Mohammed Ally Msalam, and a top aide are believed to be dead, a U.S. counterterrorism official said on January 8, 2009, in what appeared to be the latest results of a campaign targeting the militant group's leadership. Operations chief al-Kini was thought responsible for attacks, including the bombing of a Marriott hotel in Islamabad that killed 55 people in September, and an unsuccessful attempt to kill former Pakistani Prime Minister Benazir Bhutto, who was later assassinated in a separate attack, the official said. (FBI/Handout/Reuters)Reuters - Al Qaeda's operations chief in Pakistan and a top aide are believed to be dead, a U.S. counterterrorism official said on Thursday, in what appeared to be the latest results of a campaign targeting the militant group's leadership.



US Secretary of State Condoleezza Rice speaks to an unidentified aide during a Security Council meeting at the United Nations. Israel and Hamas have launched heavy air strikes and rocket attacks on each other, ignoring a UN Security Council order on the warring rivals to end their conflict.(AFP/File/Timothy A. Clary)AFP - Israel and Hamas launched heavy air strikes and rocket attacks on each other Friday, ignoring a UN Security Council order on the warring rivals to end their conflict.



A man carries firewood in the suburbs of Sofia, Bulgaria. European states deprived of Russian gas amid freezing weather were Friday hoping for a resumption of deliveries after the European Union claimed a breakthrough in the crisis between Moscow and Kiev.(AFP/Dimitar Dilkoff)AFP - European states deprived of Russian gas amid freezing weather were Friday hoping for a resumption of deliveries after the European Union claimed a breakthrough in the crisis between Moscow and Kiev.




Creativity and Innovation Management: Goal Setting

Creativity can be defined as problem identification and idea generation whilst innovation... Read More

Why Businesses Need to Start Nurturing Collective Wisdom

COLLECTIVE WISDOM CAN BE AN effective tool for solving the problem of... Read More

Top 5 Services Your Company?s Accounting Department Should Outsource

Accounting is one area which every company has to maintain but mostly... Read More

How to Reject a Job Applicant

A Nightmare That Really HappenedOver 10 years ago, when I worked as... Read More

7 Essential Elements To Every Organizational Change

[This article is based on excerpts from the special report "Overcoming Resistance... Read More

Working with Hearing Impaired Employees - Giving Them a Fair Go

Hearing impaired people often encounter difficulty at work because their disability isn't... Read More

What is Data Visualization?

Data Visualization is InteractiveHave you ever booked your flight plans online and... Read More

Conference Calling Can Save Your Sales OrganizationTime and Money!

Conference calling can save you money. There is no doubt that in... Read More

Miracle Max On Market Breakthroughs

Successful enterprise building requires seven elements. These are:1. People, who are the... Read More

Three Professional Services Resolutions for 2005

With client expectations higher than ever before, and the gradual industry recovery... Read More

Dont Get Caught With Your PR Down

Why risk the embarassment when with a little basic PR training, you... Read More

Do You Need a Personal Assistant?

It's great to be multi-skilled?be able to type your own correspondence, do... Read More

Listening Strategically

Usually, we're most interested in communicating outwardly; getting our messages out to... Read More

Business Relationship Germs

In management seminars I often compare debt to an infection. A reasonable... Read More

I Said Pareto Chart? Not Potato Chart!

Does this sound familiar? You were hired for the new management position.... Read More

How to use NLP for Business?

What is Neuro-Linguistic Programming?Neuro-Linguistic programme is nothing but the study of human... Read More

Empowering Others - Giving Them Some Control

It's been a pretty good weekend around the place - not done... Read More

Coaching Champions at Work

I saw Brian Kerr (the Irish national football coach) on television not... Read More

Influencing the Organisation

There is a saying about management that suggests some managers are so... Read More

Get Over Yourself

Let me tell you a secret.Things don't always go the way we... Read More

Questions To Ask Employees You Want To Retain

Times of cost cutting and downsizing has dramatically impacted the way employees... Read More

Management to the Vision-Contribution and the Role of Compliance

As a manager our role is to:1. Establish the vision, or our... Read More

Stopping The Brain Drain: How To Capture Key Business Knowledge Before It Walks Out The Door

The verdict is in: More and more baby boomers will be leaving... Read More

The Communications Myth

Living in the 21st Century is truly marvelous, isn't it? We live... Read More

Four Corners of a Triangle: Why Organizations Succeed or Fail

When we want to hire people for a corporation or non profit... Read More

Project Management 101

Project management is a very important business concept because it is in... Read More

Structure Your Payment Offers to Sell More Products

The way you structure your payment offers can increase your sales. I'm... Read More

30 Ways to be a Butt-Head Boss

1. Trust no one. Not your superiors and not your employees. Especially... Read More

What is Six Sigma?

Six Sigma is a highly disciplined process focused on satisfying customers by... Read More

Test Your Hiring IQ

The purpose of any selection process is to discriminate (albeit fairly) among... Read More

Tales from the Corporate Frontlines: The Role of Character in Leadership

This article relates to the Senior /Top Level Management competency, designed to... Read More

5 Ways to Work More Effectively With Your Administrative Assistant

Stop hiring new administrative support staff. And learn how to retain your... Read More

ISO 9001, What Next?

The overriding goal of ISO-14000. (History 1995)As ISO-9000 becomes a way of... Read More

Ten Problem Solving Techniques

Do you ever need to find some good ideas, or come up... Read More

Improve Operations by Restructuring

Transitioning from Vertical Hierarchies to Decentralized / Flatter OrganizationsThe need to restructure... Read More

Change Management

"It is not the strongest species that survives, nor the most intelligent,... Read More

The Seven Cs: Partnership Danger Signs - Communication Breakdown

An ongoing series of articles exploring the seven critical areas that can... Read More

Industry Analysis Section of Your business plan

Writing a Business Plan for your next entrepreneurial endeavor is crucial. You... Read More

The Email Trap

If you sit at a computer for most of the day, it's... Read More

Communicating Effectively In The Workplace: Four Vital Steps

Ineffective communication is a major, yet avoidable, obstacle to business productivity. And... Read More

Plan for Business Success - 6 Reasons to Succession Plan

Succession Planning provides many valuable assets to your business. Yet it is... Read More

Lessons From Innovative Companies

What do the companies 3M, Polaroid, and Walt Disney have in common?... Read More

Leadership Skills

Recent studies have shown that industrial supervisors are working at less than... Read More

Tales from the Corporate Frontlines: The Organizational Structure of Our Growing Business

This article relates to the organizational structure competency, commonly evaluated in employee... Read More

Why Employees Are the Best Source of Cost-cutting Ideas

Cost cutting has become a necessary and important reality in the modern... Read More

Inspiring Loyalty and Contentment in Your Workforce

One of the first things I look at when I take over... Read More

Quality Hiring: Are You Doing It Right?

Quality hiring is more than running ads, screening, interviewing and checking references.... Read More