Using Offshore Resources for Software Development

Two Success Stories

For well over twenty years, many US based companies have utilized offshore resources to augment their domestic teams.  The most well-known example may be in call center operations, but companies today are using offshore resources for accounting, software development, professional support, and many more.  Some companies have found success using offshore resources, while others have struggled.  I was fortunate enough to work for a company that had success in this area, and I have published a white paper that outlines what we did and how we succeeded so that others can hopefully learn from our success and have success of their own.  (Click here to go to my website and download the paper.)

The white paper goes into details on how we successfully empowered and utilized offshore teams consisting of employees and contractors to help us succeed in stabilizing and improving our software products.  And I conclude with some specific recommendations that anyone can use to successfully improve their use of offshore teams.  A few examples:

  • Rigorous communication is critical for success.  Have twice-a-week (or more frequent) conference calls on status, issues, and project considerations.  If you’re using an agile/scrum methodology, schedule the daily sprint meetings at a time when the offshore team can attend as well.  Document requirements well and clearly set expectations early.
  • Get on a plane.  Face-to-face meeting early in the project/process will eliminate a lot of issues going forward.  Shows the offshore team the same level of respect and commitment you show your onshore staff and make them feel part of the team.

I hope you enjoy the paper, and I welcome your feedback.

Kelly Stephen Consulting
Software Strategy, Execution, Quality, Delivery

(Go back to my website)


2 thoughts on “Using Offshore Resources for Software Development

  1. Hi Kelly,

    What about the ROI in this day and age, where salaries overseas have risen and salaries at home have either retreated or stayed the same. Does it still make sense to oustsource?

  2. Yes. A few years ago the differential between my India-based team and my US-based team was about 5-1. Even with rising overseas salaries, there is still a big differential. And if that team is only half as productive, you’re still looking at a 2-1 or 2.5-1 positive differential. So in my opinion, having a global team is still cost effective.

    Hope that helps.


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