On the subject of offshore…

One of the ways we intend to keep our cost of operations down is to run a globally virtualized organization. This means that we will source talent from a variety of locations in North America, Europe and Asia and use Internet collaboration tools and systems to coordinate our work.

The traditonal place to look for offshore programming talent is India. There is a large infrastructure in the country specifically designed to serve the needs of North American companies. The competition for this business is strong and, as a result, prices are low compared to NA costs of talent.

However…

India has been so successful at promoting this business that they are now suffering from talent shortages and talent poaching between firms. The distances involved between our team in NA and India makes it difficult to “see into” the vendors to determine some basics such as team member quality, team member satisfaction (which leads to team stability) and team efficiency. With the challenges now facing the Indian outsourcing industry, it is more important than ever that we carefully select our vendor and carefully monitor our project progress on an almost daily basis.

Our hope is that the downturn in the American economy will have positive (for us) side-effects in the offshore development industry by reducing the growth pressure and therefore the ability for team members to “jump ship” so frequently. Time will tell…

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