OffshoreNearshore

From StartupCamp

Thanks to Craig Chatterton for the notes. All mistakes are mine (all mine, HA HA HA...)

recommendations:

1. start with proof of concept or trial
2. work with vendors in services, not developing products
3. diversify development - not all in one team; don't provide entire system
4. ask questions that require demonstrated knowledge - vs. yes/no
5. define product acceptance criteria
6. test candidates; e.g.: google interview - asked to write javascript
7. outsource product management? may be riskier
8. need good VP eng'g with good prod mgmt tools
9. minimize number of time zones between teams; real-time comm
10. hire the best people you can find; if using third party, take names
11. use methodology (e.g., scrum)

TOOLS:

1. rent-a-coder
2. oDesk
3. guru.com
4. elance.com - good for graphics design
5. worth1000.com - great for graphics design
6. outsourcexp - bid on jobs
7. wiki, skype, IM, IRC (great communication with team)
8. PM system - base camp
9. VA software - sourceforge
10. collabnet - pay per developer
11. trac - free
12. Book - Software Without Borders

UI design:

1. visio, powerpoint, fllash - hard to handle pop-ups, see flow of application
2. important to be alble to iterate in real-time with all developers, in-house, outsource
3. outsourcing in a box - steve mezak; templates; accelerance

multi-vendor vs. single vendor?

1. Multiple vendors: not as dependent on one person or company
2. Single vendor: less overhead, may develop stronger relationships

pay cash vs. equity?

1. perhaps split - some equity
2. issues: may require sharing internal information, %age of company provided, legal issues outside USA

price differential?

1. 1200$/mo for developers in india
2. india: 18$/hr
3. vietnam: 15$/hr
4. rusia:
5. mexico: $20/hr

other costs to consider

1. travel
2. rework
3. specs
4. off-hour calls

Intellectual property:

1. example: india - require arbitration in contract
2. canada, mexico - compatible with us lawas (nafta)

experience in china

1. 1person traveling each month; 30person team

experience in mexico

India experience - looking for new vendor

1. took longer than expected
2. had VP eng'g here; supervised people there; equity deal with him
3. one coder in india
4. designer in another company; did good work then flaked off
5. need PHP skills - locall 60$/hour; india: 10$/hour
6. alt locations in USA? - indiana, denver
7. new graduate -

where

1. china - small teams in smaller cities; want to break into USA market
2. india - smaller cities - amahdebad, indor

requirements:

1. start-up: how to deal with fluidity - rapid market feedback
2. cultural impact - everyone together vs. outsourced
3. IM, skype - as good as guy next to me...

Experience:

1. 5-6p inhouse; needed outsource team
2. integrated team into process
3. used scrum
4. spoke with them every day
5. see 1-2 each month

Discussion Leader: Matt Pérez