Outsourcing eCommerce Application Support/Development to India? Two Keys for Success

The need for eCommerce talent is far outstripping demand in the U.S. where rates in the U.S. run anywhere for consultants from $60/hr up to $175/hr for highly skilled solution architects. Obviously there is a need to tap into the expert talent in India where rates run closer to $20+ for similar such expertise.

There are two ways to make your outsourced project or support services work for you, your client, and your employees in India to everyone’s satisfaction.

1.     Use Scrum

Outsourcing to a company using Scrum will help you overcome the obstacles that make a traditional approach unwieldy and inefficient, and that cause endemic project failures.  How so? Unlike the traditional “waterfall” approach, where all software is delivered once, at the tail end of the project; while Scrum focuses on providing a continuous flow of value to the customer, which minimizes project risk and increases return on investment.

With Scrum, catastrophic project failures like the recent California Court Management System (CCMS) $500 million debacle are impossible by definition. This holds true whether offshoring or not.

Applied in the context of outsourced, distributed software development, Scrum acts as a catalyst of communication and as a powerful spotlight shining onto every aspect of the client-vendor relationship, forcing accountability on the one hand and unleashing tremendous productivity on the other.

Inspired by the Toyota Production System (TPS), Scrum is designed around several foundational principles and practices, including development in short iterations, incremental delivery of potentially shippable software after every iteration, prioritization of features around business value, and direct customer involvement in planning, elaboration and acceptance.

Scrum acts as a catalyst of communication and as a powerful spotlight shining onto every aspect of the client-vendor relationship, forcing accountability on the one hand and unleashing tremendous productivity on the other.

2.     Local Domestic Presence Global Reach

Different countries have different cultures.  Having a local on-site presence to facilitate communication is a key to a successful approach.  The ‘new  global’ really means demonstrating the capability for operations to seamlessly flow across centers around the world.

Continued erosion of offshore/onshore rate arbitrage benefits make this even more important, as India continues to have the world’s greatest supply of the best IT talent, which has to be utilized in a way that benefits the all parties involved.

In niche areas such as eCommerce (mission critical) platforms where demand in the U.S. is outstripping supply of highly qualified architects and developers; communication between onshore/offshore will make for a successful initiative.

These two key components will make for a win-win-win for all.

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