Software development is outside your core business. Would
you start a project in the area that is not part of your main expertise,
or would you rather focus on growing your business and let experts
do the job? Do you repair your own car or do you pay a technician
to do it? Do you prepare your own tax returns or let tax professional
The experts are hard to find. Building enterprise software
requires specialized knowledge. The right expertise can mean a
difference between success and failure. But finding, hiring and
training is expensive and takes time. Instead, you can hire an
outside firm to complete your project themselves or include their
experts into your team.
Variable workload. Different stages of the software development
require different number of people with different skills. Outside
firms specializing on software development tend to have more flexible
and scalable teams, so you will avoid costs of non-productive staff
and keep up the morale of your team.
Jumpstart the project. While it make time to free in-house
engineers from other projects and integrate outside consultants
into your team, highly skilled staff of outsourcing company is
always ready to start.
Internal politics. The outside companies are free from
intra-company politics and will be able to focus on delivery of
great product. After all, Kanoi Services, for example, gets roughly
80% of its business from referrals.
Risk management. Software development is one of the most
riskiest endeavors. It is known that every third project will be
cancelled before it is completed. Further evidence suggests that
every second project will cost twice or even trice the original
budget. Call it "The Murphy laws for software development" or "Chaos
Theory", but it's science. You can minimize your risk and maximize
your success by selecting the right outsourcing firm.
High ROI. Our
goal is to provide highest value, not the lowest cost. A project
that is accurately estimated and carefully managed will end up
costing less then a bid that would start low but but creep up dramatically
as the project goes on.
Accountability. We achieve high transparency and accountability
by providing you with evidence that your engineering dollars are
well spent by delivering source code releases, milestone checks
and status reports.
Communication. The most often sighted reason that the software
project fails is inadequate definition of the requirements. In
addition, internal projects are rarely adequately documented. Kanoi Services
will dedicate the time and effort necessary to research the project
requirements and prepare thorough scope document on which you can
sign off. Once we have completed preliminary arrangements, Kanoi Services
will focus on clear communication for the remainder of the project:
maintaining a consistent information exchange increases the quality
of the end-product and reduces delays and confusion. Honest communication
will ensure your project will proceed smoothly and without surprises.
Team work. We will ensure that access to source code, bug
lists and documentation are hassle-free. Also, we maintain a shared
repository of code with versioning support, so team members around
the world have seamless access to the code while providing ability
to retrace the code changes and to backup the older versions of
code . All team members
are reachable through phone call, e-mail or instant messaging software.
cost structure. We offer our services on both
time-and-materials contract basis or offer a fixed
bid. Fixed-price (flat-rate) contracts may result in
reduced functionality if the firm is forced to cut corners
to meet the budget. That can also be the case if initial
requirements for the project are vaguely defined. Though
Kanoi Services has the right expertise to analyze the customer's
business requirements, on large-scale projects it is almost
certainty that requirements are going to change during the
course of the project. We will do everything to find solution
that satisfies our customers, but in general fixed-bid projects
tend to be a management headache: even if the flat-rate project
is re-estimated to include new scope, valuable engineering
time is lost. Most often the time-and-materials contract
leads to a better relationship between you and your software
engineering partner. It provides the flexibility needed to
complete the project in the face of changing requirements.
Some engineering managers express concern that a time-and-materials
contract only benefits the outsourcing firm that would purposely
drag the project in order to increase billing. But Kanoi Services
is highly motivated to finish your project on time and on budget
for the sake of repeat business. Again, Kanoi Services gets 80% of
its business through referrals.
Of course they can. There's plenty of offshore companies offering
their services. I bet you also are being "spammed" with"developers
offering their services for $8/h". Well, we actually
tried one of these offers in our early days. Unfortunately we got
exactly what we bargained for: bunch of coders working from a garage
- completely incompetent, no representation in the U.S., no liability,
poor communication skills, poor management. If only it worked out
we could offer our customers more then 80% savings! Bad experience...
But can organizations really save that much on outsourcing, or
are these savings a myth, a product of wishful thinking?
According to major research firms specializing in offshoring/outsourcing
analysis, on large projects lasting several years the average savings
barely reach 25% in the first year. Savings of up to 50% are achievable
in the second calendar year of the project. And the reason why
the first year delivers twice smaller savings then the second is
startup costs, poor communication during contract negotiations,
gathering of the requirements and lack of experience of the offshore
team in working with customer's tools.
Luckily, Kanoi Services already has the infrastructure set up: our
servers, shared code repository maintained with seamless access
for customer's, local and offshore teams to work together. So,
if done right, Kanoi Services can help the customers achieve much
greater rate of savings, and ultimately, deliver higher ROI. Also,
to improve communications, we use instant messaging, email and
internet teleconferencing tools so no expensive long distance phone
calls are necessary.
We also use VPN access to our server and our customer's network
(with their permission), or remote terminal server software.
So again, customers can do outsourcing offshore on their own,
but at higher cost and with longer start up time. It's all about
experience and existing infrastructure.
So you are interested in outsourcing, but can't make up your mind.
You didn't have experience with offshore developers yet. Who knows,
what if these developers on the other side of the Earth are incompetent?
How will you efficiently communicate with them? How will time zone
difference impact the project? How will we share source code and
perform builds between the local and offshore teams? Those are
absolutely fare questions. And we have got the answers.
I'll start from the story of the project we did for one of our
large customers. The project began during 2001-2002 recession,
and the customer was literally counting pennies. Though they had
a very talented team, the skill set just wasn't align with the
task. That's when we came in. I must mention that this customer
did not have a single consultant on the team before: their perception
of the consultant was of a person who comes to fix a problem and
goes. In fact, the only type of consultants they worked with were
people they'd hire for a day or two to install and configure a
new product or service. When we came aboard, we have completely
changed that perception - in a way that changed the entire business
model of that customer when they discovered the new more efficient
ways to do business.
For one, we proved that consultants are not always people who
come and go and take their experience with them. We demonstrated
that consultants can be part of the team for very long commitments,
they are highly proficient in their area ofexpertise and they
will execute an adequate exit strategy before they leave by mentoring
the customer's team and transferring necessary knowledge.
Secondly, when the times were tough, Kanoi Services had delivered
twice the experienced workforce for half price. Two of the customer's
team members were downsized, instead we got 5 people offshore,
and a server, and new licenses. When the project was finally delivered
and customer could finally realize the return on their investment,
they started hiring again.
Many customers have heard about our services, and about the benefits
of outsourcing development offshore, but are afraid of outsourcing:
either they never tried it before, or already had a bad experience.
So we decided to make our
Trial offer: give us a week worth of work and try our offshore
outsourcing services. Check our communications, our expertise and
experience how offshoring really works. And it's really low risk,
or no risk at all. On top of that, the first
consultation if free.