Points to Consider for Outsourcing

Coming from both ends of the spectrum of outsourcing and offshoring for the last 10 years and picking up on the pain points from others in the industry, the following is my collection of things to consider:


  • Freelancers: Choosing the right freelance talent works best for specific, one-off assignments. However, if you have a large project which requires a lot of collaboration and coordination, you might want to consider getting an entire team from one company rather than gathering several freelancers and form your team. The latter seems to be the more affordable option, but you have to bear in mind that a lot more value can be delivered by the former. A group from a company has established processes, administrative support, centralized invoicing, and other services that may add a bit more to your cost, but also saves you from a lot of headache. The whole is bigger than the sum of the parts, after all.
  • Cheap: You are already saving a lot by going offshore, I believe a 40-50% saving from what you would pay locally is a good expectation. However, once you try to save more by going to the next cheaper group of service providers, you might be looking for trouble. Remember the people you are working with are also in business and they need to make enough money to 1) deliver quality output; and 2) be interested in doing business with you in the long term.
  • Flat World: Knowledge and know-how are more universal today due to the Internet and people working with each other across the world. Its best to be open minded about what the provider can contribute to your project, not only in terms of labor but also insights. Chances are, the outsourcing providers have had other similar or related experiences that can help improve your product concept.
  • Process: Sometimes following a process seems like a waste of time, but in reality it comes back to bite you later – in the form of missed out items and heavy rework. Working without any clear specifications and processes might work fine in a small collocated team, where knowledge sharing is seamless and instantaneous. However, as the team grows and extends beyond your table and physical office, you just can’t live without specifications and processes. Remember that ‘Lean’ and ‘Agile’ concepts talk about doing only the necessary documentation, not ‘no documents at all.’
  • Trust & Transparency: Starting small, knowing the people from outsourcing providers as intimately as your own team members at your office, and building the human connection is critical. It might be natural if you are in the same office working hours on your project –but when you are across the ocean from your outsourcing team, you really need to make a conscious effort to build the relation and trust. Spend some time visiting them at the beginning and during the project.
  • Big Benefit of Small Talk: To make lot of the above items to happen, there is no substitute for small talk. In the office you get to do this by the water cooler, over lunch, or over beer after work hours. With your outsourcing providers, you should try this over social channels like being part of their FB and Linkedin network. Constant Instant Messaging (IM) via Skype, YM, Live Messenger, etc. is a good option, too. When doing IM with the outsourcing team, perhaps keep a window open – this seems to work well for a couple of our teams. It’s like a police blotter where open discussions and knowledge keep happening between all the team members.

Leverage on Technology: Remember there was no outsourcing and offshoring of service before the Internet, technology made it happen. Don’t think its waste of money or time in leveraging as much possible on technology in getting all the above done smoothly and easily. Try an online tool like www.xamun.com to manage your projects, clients and distributed

What Makes A Great Project Management Software?

Here are a few key takeaways on what constitutes a great project management software tool, based on what I picked up from my last 20 or so years of project management experience – in construction, real estate, business consulting and lately, software development – and roughly 12 years of product development experience.

  • 9 knowledge areas of PMI: Schedule, Cost, Scope, Risk, Quality, Communication, Procurement, Human Resource & Integration. For a project to succeed, the tool should help with more than just managing scope and communication and cover these areas, to avoid a myopic view of project management.
  • Agile vs. PMI: Agile, through its innovative means, reduces or eliminates the need for close monitoring of all the 9 areas, however we still need to keep an eye on them and the system should provide an integrated way to track those that need to be monitored. The software should also provide the capability to handle different project management methodologies in one system rather than forcing users to choose one over another.
  • Communication & Coordination: The key to successful project management is close communication with tasks at hand. This holds true in agile, particularly in how it eliminates documentation and other heavier monitoring. However, with larger and geographically-distributed teams, communication and coordination can become a major challenge. Unless your tool takes care of this in an integrated manner, your project can easily spin out of control.
  • Project Tasks vs. Organizational Tasks: Every member of an organization needs to handle more than just project tasks, even though that might be their primary responsibility. In smaller organizations, there is always set of tasks that are strategically important but not part of any project. Most PM tools miss out in managing both kinds of tasks in a synchronized manner, to help people in their daily responsibilities.
  • Ease of Use: I have used some very sophisticated software, but they are so difficult to install, implement and understand that a major part of my time goes into learning them. Add to that the fact that human error is highly likely during use because of their complexity. A good tool should be intuitive enough, should not take more than couple of hours to get used to, and should feel natural while using on day-to-day execution of a project. The social aspects in software today are also very interesting to induce improved usage and communication, the latter being the key to success.

I can go on with more points to add to the list, but that might just dilute the value of each item above. There is not one way to handle all projects well, and some models like the Diamond Model for project analysis can be a helpful tool to understand and segregate the sub-modules/systems by its profile and manage appropriately to improve success rate. Of course this is not up to the software to analyze and decide, but the people in charge of the project. However, when project leaders decide on a methodology, the tool should provide enough flexibility to manage the project and its parts in an integrated manner, and the tool should be suitable for the increasingly global team structure.

We at Xamun designed our product with most of these points in mind, and we are continuously improving on it as we gather more inputs from our users. We hope to hear from you soon about your Xamun experience, so you can also be part of our product development journey.