Your SlideShare is downloading. ×
Startup Offshoring from StartupCamp Switzerland 2014
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Startup Offshoring from StartupCamp Switzerland 2014

320
views

Published on

Offshoring software development for your startup - how to do it, how to do it well? A workshop led by Andy Brandt and David Butler on the StartupCamp Switzerland in Basel in February 2014.

Offshoring software development for your startup - how to do it, how to do it well? A workshop led by Andy Brandt and David Butler on the StartupCamp Switzerland in Basel in February 2014.

Published in: Business, Technology

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
320
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. A SHORT OVERVIEW OF STARTUP OFFSHORING DAVID BUTLER, ANDY BRANDT STARTUP CAMP 2014 BASEL 2014-02-08
  • 2. POINTS WE’LL COVER AKA AGENDA WHY TO NOT OFFSHORE/OUTSOURCE? It may look like a strange way of opening a talk about offshoring/outsourcing, but we feel it is a good idea to understand what tradeoffs are you making before you take the plunge. CONTRACTING OPTIONS We are not lawyers and this is not legal advice , but:  go for T&M or fixed?  or maybe some other option? Plus it is a good idea to have realistic expectations as to how much security a contract gives you. STARTUP CAMP 2014 BASEL 2014-02-08 CHOOSING WHOM TO WORK WITH Lots of options and choices to make:  where to go & why?  build a team or outsource project?  what due diligence to do? HOW TO WORK WITH YOUR THEM? Once you have your team/developers you have to work with them. What methods to use, what tools can help etc. PRICING You want to pay a fair market price – you don’t want to end up ripped-off – but probably you also don’t want to exploit others. How to find then the right price? CLOSING/TRANSITIONING If you expect your startup to be really successful and take off like a rocket there will be a moment when you will want to have your own team – how to transition/close?
  • 3. WHY TO NOT OFFSHORE?  UNDERSTANDING TRADEOFFS:     TEAM ENGAGEMENT -> CODE QUALITY, INVESTMENT IN THE CODE, CREATIVITY ABILITY TO CHECK WORK, MOTIVATION ETC. OF YOUR TEAM THEIR CONTRIBUTIONS TO THE PRODUCT & COMPANY COST  OPTIONS YOU HAVE (IN ORDER OF “GOODNESS”):     TEAM WITH YOU HERE – BEST IF YOU CAN AFFORD IT YOUR OWN TEAM OFF-SHORE – SECOND BEST OPTION, BUT BUILDING IT CAN BE A CHALLENGE SOMEONE’S TEAM (HIRE A COMPANY) – CAN BE OK, BUT IT WOULD BE “JUST A PROJECT” FOR THEM ALWAYS A BUNCH OF FREELANCERS OFF ODESK ETC. – NOT RECOMMENDED UNLESS YOU ARE A DEVELOPER YOURSELF!
  • 4. CHOOSING WHOM TO WORK WITH  ASSUMING YOU WANT A READY TEAM – HOW DO YOU FIND IT?  LOCATION – CEE? EU? FAR EAST? ELSEWHERE?    TIME ZONE DIFFERENCE, TRAVEL TIME – CEE IS BETTER THAN ASIA, SAME TIME ZONE, CHEAP TO VISIT LANGUAGE – ENGLISH, SOME MAY SPEAK GERMAN, DON’T EXPECT ANY OTHER LANGUAGES CULTURE – ESP. WORK ETHIC, ATTITUDE TOWARDS AUTHORITY, QUALITY, PUNCTUALITY ETC.  CHECK THE REFERENCES!  GOOD GEEKS ARE VISIBLE IN THEIR COMMUNITY – THEY SHOULD BE VISIBLE IN THE COMMUNITY FOR THEIR TECHNOLOGY OF CHOICE  IT IS BETTER TO VISIT THEM, BUT DON’T OVERESTIMATE THAT!  …BUT EVEN BETTER TO TRY THEM OUT – RUN A SPRINT OR TWO WITH THEM.
  • 5. PRICING  UNDERSTANDING LOCAL PRICE POINTS   WAGES ETC. ESPECIALLY FOR DEVELOPERS IN THE “ TARGET COUNTRY” – KNOW THEM!   Eg. Poland – an average developer will earn ~2500 CHF / month etc. However, company cost of employing a developer is 2x the earnings due to taxes etc. PRICES ETC. – HAVE AT LEAST SOME UNDERSTANDING OF THE LOCAL CONDITIONS TAKE MULTIPLE OFFERS, BUT DON’T GO FOR THE LOWEST BIDDER (UNLESS YOU UNDERSTAND WHY THEY BID SO LOW)   ASK QUESTIONS!
  • 6. CONTRACTING OPTIONS  BASIC CONTRACTING OPTIONS YOU CAN HAVE:     T&M – PER TEAM OR PER PERSON, PER DAY, MONTH OR SPRINT FIXED BIDS – “WE’LL DO A PROJECT TO THIS SPEC WITHIN THIS TIME” – AVOID THIS! HTTP://GOO.GL/FXVCXI OTHER MODELS LIKE THE “CHANGES FOR FREE” CONTRACT RELATIONSHIP BETWEEN CONTRACTS AND METHODS USED  UNDERSTAND WHAT THE CONTRACT YOU HAVE REALLY GIVES YOU  WHAT IS YOUR RISK COMPARED TO THEIR RISK? (YOU RISK YOUR BUSINESS OPPORTUNITY, THEY JUST SOME OF THEIR FEES)  HOW ENFORCEABLE THE CONTRACT REALLY IS? (IN CEE THE FURTHER EAST THE LEAST PROTECTION A CONTRACT WILL GIVE YOU)  OF COURSE – ASK A LAWYER!  (BUT BE PREPARED FOR UNSATISFACTORY ANSWERS, AS LAWYERS SOMETIMES AVOID CLEAR-CUT ANSWERS TO PROTECT THEMSELVES)
  • 7. HOW TO WORK WITH YOUR TEAM?  SELL THEM THE PRODUCT!  YOU WANT THEIR ENGAGEMENT BEYOND JUST COLD PROFESSIONALISM NO MATTER WHAT IS THE LEGAL SETUP  IF YOU CAN’T GET THE DEVELOPERS EXCITED HOW YOU HOPE TO GET YOUR CLIENTS EXCITED?  METHODOLOGIES MATTER  USE AGILE – AND MAKE SURE IT IS NOT “PRETEND AGILE”  MAKE SURE THEY USE MODERN PRACTICES/METHODS NOT ONLY IN PROJECT MANAGEMENT  NEVER FALL FOR THE ILLUSION THEY WILL DELIVER WHAT YOU NEEDED BASED ON A SINGLE SPEC DOCUMENT!!!  BE IN TOUCH, LOOK AT WHAT THEY DO     CHECK THE TEST SERVER, THE BOARD, TALK TO THEM DAILY IF YOU CAN’T APPOINT A PM/PO IN YOUR OFFICE HERE VISIT AS OFTEN AS FEASIBLE LOOK AT THE CODE – IF THEY ARE RELUCTANT TO GIVE YOU ACCESS TO YOUR CODE FROM DAY ONE: RUN!  LOTS OF TOOLS TO HELP YOU!
  • 8. CLOSING TRANSITIONING  CONSIDER THIS BEFOREHAND – AGAIN, THIS IS PART OF THE TRADEOFF YOU MAKE BY OFFSHORING  OPTIONS:     TRANSITION THE WORK, LEAVE THE TEAM (ESSENTIALLY THE ONLY OPTION IF WORKING WITH A COMPANY) TRANSITION KEY TEAM MEMBERS KEEP THE TEAM OTHER?
  • 9. PROFILES Andy Brandt Andy is an experienced manager, team builder and entrepreneur. His experience includes e-business, e-commerce, mobile solutions, telco (ISP, cellular operators), software development and Internet systems & services. He is also a Scrum.org’s Professional Scrum Trainer. David Butler David Butler is a serial networker and social media aficionado. Both David’s strong social presence and his love of testing beta versions of new products coming from Zurich’s many startups, have made him a sought after advisor in many industries. Fully engaged in the Swiss Startup Scene, promoting it’s innovation with events, networking, social media, and connecting the dots. Between 2007 and 2010 Andy’s company – Code Sprinters – was providing software development servicescatering primarily for startups. 4 years experience working in a startup with a remote team HTTP://ABOUT.ME/ANDY.BRANDT HTTP://WWW.SOCIALAXLE.COM/
  • 10. THANK YOU! AND GOOD LUCK