Off shore costs

[OnceStonedRose]

How much do you reckon it costs companies to get "the needful" done by offshore teams?

I would've thought that enough firms would have been stung and word got round that long run, in terms of support and re-writing poor systems delivered by offshore devs, that it would have started to naturally cease to be an option, especially for big companies.

Everytime i start a gig at new place, they always have a project about to be undertaken by some indian outfit and are already struggling, straight from the get go, to convey requirements etc...

It really must be peanuts they are pating out to want to go through all that arseache again and again.

[MarillionFan]

How much do you reckon it costs companies to get "the needful" done by offshore teams?

I would've thought that enough firms would have been stung and word got round that long run, in terms of support and re-writing poor systems delivered by offshore devs, that it would have started to naturally cease to be an option, especially for big companies.

Everytime i start a gig at new place, they always have a project about to be undertaken by some indian outfit and are already struggling, straight from the get go, to convey requirements etc...

It really must be peanuts they are pating out to want to go through all that arseache again and again.

Yes, but when you compare the resources you have onshore, to offshore, you realize quite quickly that most onshore resources are bloody useless money grabbing opportunists who can't even find the on switch on a laptop.

[clearedforlanding]

On your books you can shift OPEX to CAPEX & that is very important in your quarterly reports.

[tomtomagain]

Although most techies hate off-shoring a significant number of managers don't.

The manager doesn't have to "gather the requirements" or run the testing, or write the code or even usually deal with the fall-out from unhappy end users.

(S)he get's to read and write status reports and attend meetings where nothing much really happens.

So they don't have any skin in the game ... and if it does fail, then they just blame the out-sourcing company and then select another one.


..... and corporations have a very short-term memory. The ones that outsourced a few years ago no longer remember what it was like to have in-house teams, so they just assume the massive pain ,high risk of failure and cost overruns is normal.

[Eirikur]

Had a contract a few years ago for a major US IT firm
Senior salesforce.com technical architect US or Eur based $900 pd
India based $9 per day (+ paracetamol $0.10 per day for any headache this causes)

(All internal staff)

[Fandango]

My current gig the client has offshored some of its web development projects to Vietnam through a UK recruitment agencies offshore arm.

All their devs were being were being charged at ~£120/day +vat

There did have to have an "Engagement Manager" for a couple of days/month @~£800+vat
And I'm sure there was a some UK PM days as well at a typical UK rate.

It would seem that the Vietnamese don't have a back stabbing culture like the indian outfits do, but the small amount of interaction I had it them I found the language barrier and the ability to convey requirements and for them to understand business processes etc a complete nightmare, so I distanced myself from anything to do with it.

[ChimpMaster]

How much do you reckon it costs companies to get "the needful" done by offshore teams?

I would've thought that enough firms would have been stung and word got round that long run, in terms of support and re-writing poor systems delivered by offshore devs, that it would have started to naturally cease to be an option, especially for big companies.

Everytime i start a gig at new place, they always have a project about to be undertaken by some indian outfit and are already struggling, straight from the get go, to convey requirements etc...

It really must be peanuts they are pating out to want to go through all that arseache again and again.

The cost is irrelevant, the pain is irrelevant, the quality is relevant, the achievement is irrelevant.

The only thing that matters is the wad of cash paid from the consultancies to senior management, after they have been wined and dined during the tour of the offshore facilities.

[OnceStonedRose]

The cost is irrelevant, the pain is irrelevant, the quality is relevant, the achievement is irrelevant.

The only thing that matters is the wad of cash paid from the consultancies to senior management, after they have been wined and dined during the tour of the offshore facilities.

And the quality?

[bobspud]

How much do you reckon it costs companies to get "the needful" done by offshore teams?

I would've thought that enough firms would have been stung and word got round that long run, in terms of support and re-writing poor systems delivered by offshore devs, that it would have started to naturally cease to be an option, especially for big companies.

Everytime i start a gig at new place, they always have a project about to be undertaken by some indian outfit and are already struggling, straight from the get go, to convey requirements etc...

It really must be peanuts they are pating out to want to go through all that arseache again and again.

I worked with a company that has some offshore teams that they sell to unsuspecting idiots on a regular basis. When I was there, the cost to the client for a rampant skills-less engineer was £5 per day less than having a contractor

But the model was 80% of the project gets (mal)handled by the Z team and at the end they start paying guys like me to put it straight or drag it back on track. I made damn sure they paid through the nose for that.

But the stereotype amongst the managers are that they are intelligent and good at what they do. :howell

[NotAllThere]

The way to reduce costs when outsourcing is to pay the offshoring company their retainer, but continue to do the actual work yourself.

The CIO at currently client has had to oversee offshoring - he's generally opposed to it, but the Finance director insists. The reason is the company divested itself of one part that brought in 30% of the income, but didn't account for 30% of the cost, so 30% savings have to be made. Offshoring is a quick way of appearing to do this.