Chronicles of a First-Time Entrepreneur: Outsourcing – Lessons Learned Part II.
In my last post, I talked about a nightmarish experience of outsourcing the design work for HowLegit? Recovering (quickly) from this experience, I went on a hunt for my engineering team with two things in mind : I would go on referrals primarily, and I would prefer to work with a legitimate company over an individual. Too risky to have someone build your code and then disappear all of a sudden. I posted on Rent-A-Coder and Elance, two sites which allow vendors from all over the world to bid on your project, potentially allowing for great cost savings. When you are flooded with 10-20 bids as I was, it can be a daunting task to decide on the right one. In the evaluation process, it is as important to assess communication ability and style, as technical skill, especially if you are thinking about working with developing nations like India and China. Also pay attention to the vendor ratings that will give you a sense of customer satisfaction. I ended up going with a firm based out of China, whose CEO worked out of Silicon Valley and made customer service a priority. I had my engineer adviser quiz his engineering team, and I was comfortable with the fact that they were dedicated to getting the work done and that customer satisfaction was very important because they were just starting out and were looking for referrals. (Email me for their name – happy to refer you to them, as I have been very happy and continue to work with them on Phase 2 of the work.)
In the contract phase of outsourcing to a partner, I would say “scope creep” is the biggest concern, in that when you delineate the vendor’s responsibility, make sure to state things you think they will need to take on, in addition to things you know they will. Although this may have the potential to drive up your costs at the start, it will more likely prevent a renegotiation in which the vendor believes that you have underestimated the work and will charge you more going forward. It is also very important that you understand the resourcing: Who will be your project manager? Engineer? QA? UI? Are you paying lump sum for a combination of these services or will you be billed hourly for each group that is involved. For example, although I had my designs created by another vendor (see my last post, Outsourcing: Lessons Learned Part I , )turns out I still needed UI assistance in refining the pages, building out ones that were incomplete, and converting the whole lot to html (an absolute essential final deliverable for any UI designer). So I ended up buying a combination of engineering services (project manager, engineer, QA) on a monthly basis, and a one-time UI fee for the initial development of the pages.
When dealing with non-English speaking countries like China, make sure you are not paying too much of a premium for English speakers, as you can find them dime a dozen in India and Eastern Europe. It may just take you a little longer to sift through all your options. It is also worthwhile to agree on a “trial period” of a small piece of the project so that you can evalute the technical ablity and communication style. In an outsourced world, not being in the same room or city as your partner makes it much harder to know what’s really going on. Insist on documentation of everything in the form of daily or weekly work reports, bug tracking lists, project plans, etc. You’ll be glad you did.
A final word to the wise on special “social networking” engineering such as Iphone and Facebok apps. As the technology and information around these evolve every day, your regular engineering shop may not have the expertise to develop these, which means that you either have to spend a lot of time teaching your developers how to build one, or you may need to outsource to a specialist. (Silicon Valley is full of them). Before you do that though, make sure you have done your cost-benefit analysis – some platforms are not very developer-friendly, and unless you have something truly outstanding, it may get lost in the sea of others trying to do the same thing as you.
Next Time: Getting Started: Building the Site
Kaamna Dhawan had a colorful career in corporate America before realizing that the intersection of technology and human interaction is where her passions lie. And no one makes human interaction as fascinating as celebrities do! As the founder and CEO of HowLegit.com, she brings in experience from running 4 successful social networks and a continuing restlessness for learning and entrepreneurship. Kaamna is now seven months pregnant, and just moved across the world to Sydney, Australia, proving that technology has truly removed all barriers against productivity and connectivity. She misses the Bay Area and her interactions with Girls in Tech and secretly stalks the organization through the website and Facebook!




































