{"id":14295,"date":"2020-05-19T15:36:23","date_gmt":"2020-05-19T15:36:23","guid":{"rendered":"https:\/\/clone4.10pearls.com\/?p=14295"},"modified":"2026-07-30T06:32:15","modified_gmt":"2026-07-30T06:32:15","slug":"outsourcing","status":"publish","type":"post","link":"https:\/\/10pearls.com\/uk\/blog\/outsourcing\/","title":{"rendered":"Outsourcing: How to Get the Best Value"},"content":{"rendered":"\t\t
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\"\"<\/p>

I\u2019m<\/span> often asked my opinion <\/span>regarding<\/span> the relative merits and <\/span>fully-loaded<\/span> cost of software development in various technology centers around the world. My response draws upon 15 years running a software development firm with teams on 3 continents and prior experience managing a $150 million outsourcing budget for a Fortune 100 Company. Here, summarized below, is what I usually <\/span>say<\/span> and I want to share it with you now. \u2013\u00a0 Imran Aftab, CEO<\/span><\/span><\/span><\/p>

Over two decades<\/span>\u00a0ago I founded 10Pearls which, has grown from nothing to a leading software development provider with over 1,3<\/span>5<\/span>0 employees and offices in the United States (DC,\u00a0<\/span>IL<\/span>), Pakistan (<\/span>Karachi, Lahore, Islamabad)<\/span>, Colombia (Medellin), United Kingdom (London)<\/span>,\u00a0<\/span>Saudi Arabia (<\/span>Riyadh), San Jos\u00e9 (Costa Rica), and Lima (Peru)<\/span>.<\/span>\u00a0Prior to founding 10Pearls, I\u00a0<\/span>led<\/span>\u00a0the global outsourcing initiatives at companies like AOL-Time Warner and Sprint, managing $150\u00a0<\/span>million<\/span>\u00a0budgets.\u00a0<\/span>Roughly 30%<\/span>\u00a0of that budget went to India and the rest was distributed across other\u00a0<\/span>marke<\/span>ts<\/span>. That individual experience, followed by many years of corporate experience as a provider of blended-shore product development, has resulted in a deep understanding of the industry and many helpful lessons about achieving the best value.<\/span><\/span>\u00a0<\/span><\/p>

Here’s what you need to know:<\/strong><\/p>

  1. Cheaper is not better:<\/strong> In outsourcing, there is a difference between cost vs\u00a0<\/span>price<\/span>.\u00a0<\/span>Real cost<\/span>\u00a0is tied to the productivity or value you get for your money. Cheap, Fast, Good\u2026that is what Gartner recommends these days (they\u00a0<\/span>actually put<\/span>\u00a0up that slide at a<\/span>\u00a0<\/span>conference). However, the more intangible components like \u201cquality\u201d are key (more on that shortly).\u00a0<\/span>It\u2019s<\/span>\u00a0al<\/span>so i<\/span>mportant to consider what\u00a0<\/span>additio<\/span>nal<\/span>\u00a0skill\u00a0<\/span>sets a development partner brings \u2013 technical\u00a0<\/span>know-ho<\/span>w<\/span>, cyber<\/span>security practices, design, etc.<\/span>
    –<\/span><\/li>
  2. Productivity is key:<\/span><\/span><\/strong> The biggest and most nebulous issue in outsourcing is productivity. This is not just tied to hiring good tech talent but also, and most importantly, <\/span>retaining<\/span> them (<\/span>c<\/span>hurn puts the brakes on productivity). Yet, retention comes at a price and requires sincere commitment. Most development services providers<\/span>,<\/span> including the largest firms<\/span>,<\/span> do not take that into consideration, as <\/span>evidenced<\/span> by a lack <\/span>of<\/span> investing<\/span> back in their employees, operations, processes, training, etc. Additionally, productivity is a measure of the number of \u201cproductive\u201d hours a contributor is available for. It is important to take into consideration <\/span>in<\/span>-country holiday schedules, cultural <\/span>norms,<\/span> and work <\/span>ethic<\/span>, <\/span>so productivity optimization doesn\u2019t bring down morale<\/span>. <\/span>Productivity is something that can definitely be measured and improved in terms of development velocity.<\/span><\/span>
    –<\/span><\/li>
  3. Leverage <\/span>outsourcing for<\/span> knowledge:<\/span><\/span><\/strong> There is a trade-off in innovation, efficiency, and productivity between outsourced offshore vs<\/span>.<\/span> captive offshore<\/span> (that you fully own and <\/span>operate<\/span>)<\/span>. The latter can be effective when you reach a certain size, but the former allows you to achieve the necessary critical mass, or \u201cmindshare,\u201d of a larger and more diverse pool of talent efficiently. Therefore, unless you can afford enough developers to justify your own \u201ccaptive\u201d shop, <\/span>choosing the offshore partner<\/span> is absolutely the most <\/span>important decision<\/span> you can make when it comes to the <\/span>real cost<\/span> per person (as mentioned in the <\/span>previous<\/span> point with respect to productivity).<\/span><\/span>\u00a0<\/span>
    –<\/span><\/li>
  4. Location, location, location: <\/span><\/span><\/strong>Optimizing<\/span> between location and talent can be tricky. Unless you are spending more than $5 million per year, your dilemma is often: [Top tier location + Lower tier developers] versus [Lower tier location + Top tier developers].<\/span><\/span>
    –<\/span>