Big programming companies — which one is right for you?

May 14, 2013 by 123outsource
Categories: Outsourcing Articles | Tagged , , | Leave a comment

I have been interviewing large programming houses. Some are here in the good old U.S. of A. But, others are in Canada, Belarus, Vietnam, and India. Which one is the best and why?

What I learned is that big companies have many individuals working for them, but seem to have a narrow type of thinking when it comes to their business model.

The low end..
I have seen big outsourcers specialize in hiring cheap labor. Everyone at such companies would be inexpensive and not that well skilled.

The medium level
Others specialize in hiring medium (end) workers. You will never get anyone that bad, or anyone that good at such a company. If most of the work on a particular side required average workers, but sometimes you need a specialist, you will be sorry if you hire an inflexable middle of the road company.

The High end..
There are a few high-end programming companies too. Some of them charge high end prices without delivering high end service. But, some really do hire the best and finest programmers in town. If your project consists of partly grunt work and some specialty work as well, you will get the job accomplished with this type of company — and for a very handsome price tag.

Mixed Level
Mixed level companies. There are companies that charge a fixed hourly rate for work, but mix up the levels of the programmers and project managers. You might get a handful of medium level workers, and once in a while they might pull in a specialist, while having the whole operation managed by a very seasoned project manager.

All Level
Some companies, large and small, offer a choice of programmers. The hourly price changes depending on who you hire. To me this makes sense. You pay exactly for what you get. In real life, programmers can range in price from $10 per hour until $200 per hour. I bet that you can imagine the difference in efficiency, capability, and quality between the workers at all of those price breaks!

Can small Indian companies compete against bigger sharks?

May 13, 2013 by 123outsource
Categories: Uncategorized | Tagged , , , , , | Leave a comment

Small Indian companies sometimes will have a charismatic boss and a highly skilled workforce. But, more times than not, there is a lack of communiation skills, and a lack of internal management. Big companies in India and MNCs that do business in India have the advantage of having professional management systems, expert communicators, genious marketing managers, and much more. If you are a small company in India, how an you possibly compete with these sharks?

One of the problems is that the owner will have to wear many hats himself. He will have to do public relations, hiring, firing, training, management, and more. This is a lot for one person to do. My message to smaller companies has always been to learn to communicate well, particularly on the phone. Stress communication. If your clients feel awkward communicating with you, they will dump you soon. The next thing is to be in touch with how your clients like their work done. If you don’t communicate, you will not be good at learning what they want. Listening is a big part of the battle here.

Bosses in little Indian companies tend to have very good English skills, but their workers can not function in English (or in any language) most of the time. This is a problem. It is hard to teach work skills, but how can you teach a language to someone who doesn’t know it, and who can’t even communicate in their own language?

If you are specializing in outsourcing to English speaking countries, or countries where their only means of communicating with you would be in English, then your language skills need to be good to survive. Americans can understand Indian English. But, what about French people who struggle just to understand “regular” sounding English. How will they be able to understand Indian English spoken by people who mumble, and are not really interested in communicating? You will lose a lot of clients due to this.

The solution is easy. If you cater to the West, then cater to communicating with the West. Communication is 30% of the job criteria if you ask me. The rest of the work doesn’t consist of communiation but RELIES on communication otherwise you won’t know what to do or when. HIRE people who can communicate gracefully with overseas clients. Listen to what people’s needs are and make a big effort to fulfill whatever they said their needs were. Most companies just do whatever they feel like. If you want to be profitable, do what your client feels like, and not what you feel like. If you are experts at communication and pleasing your clients you can compete easily with the big fish and eat them too.

Big fish eat little fish. But, if you are a piranha, then you can be a little fish who eats big fish and other big animals.

Bait and switch practices at outsourcing companies

May 11, 2013 by 123outsource
Categories: Outsourcing Articles | Tagged , | Leave a comment

It is common for companies to tell prospective clients pleasant things to get their to sign a contract. However, once you read the actual contract it might be a lot less pleasant than what the salesperson talked about.

I had one company tell me that I could purchase as many hours of programming as I liked in a month providing I prepayed. I thought this was reasonable. When I received the contract, they were asking for a 40 hour per month contract which turned out to be their minimum order. The hourly price was right, but the minimum was crazy. My project is a small one that needs about 5-12 hours per month on an ongoing basis.

I told the provider that if they did a good job on the “test” project, that I had other projects in the pipeline that I would give them. However, they wanted to do the test only if I would upgrade to 40 hours per month soon after that.

I wish they would have told me about the minimum up front so I could have spent my time talking to the other companies on my list.

In any case, the process of choosing an outsourcing service provider is hard. The deeper you dig, and more people at the company you talk to — you will find that the story keeps changing. You need to know what you are getting at an outsourcing company BEFORE you sign anything. Additionally, for smaller projects, I am not sure that signing a contract is in your favor. It binds you to a legal relationship with a company that you might not even like.

Following directions and consequences for not

May 7, 2013 by 123outsource
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Outsource: Following directions: When and where

When I test out software companies, I always take analytics on their performance. Testing people is easy. Getting analytics on what they SAY and how they PERFORM is easy. But, what about the interpretation of the analytics? That is not so easy.

Understanding how to interpret analytics is like seeing how a relationship will go based on the first date. The first date gives you some information about a person, or at least who they are pretending to be. But, it doesn’t prove how a person will behave in a long term relationship. What I learned, is that if a person doesn’t follow directions, that affects their performance in a variety of ways.

If you hand over an established website to a company, there are several considerations to think about. Are they secure for handling your site in the long run? Can they build new modules on your site? Can they update the technology over time as necessary? And can they quickly fix things that break? What I learned is that if you don’t follow directions, then you will not fix what you have been asked to fix — but, instead will be working on something else for me, or for another client. The order of critical and time sensitive steps is something that is greatly affected by the following directions analytic. Additionally, if something critical is broken, and you don’t fix it to specifications, then you create a delay in fixing code that is time sensitive. All 20,000 of your users will be delayed indefinately while a sluggish and uncooperative programmer screws around not following directions. Can you afford that?

Not following directions comes at a cost. Sometimes the cost is:

(1) Merely the cost of therapy bills for dealing with the frustration of dealing with someone who refuses to obey orders.

(2) Sometimes there is a financial cost for every hour something critical is left broken.

(3) Also, don’t neglect the fact that the programmer might fail to follow directions by working on the wrong project at the wrong time which screws up your ability to schedule projects.

Test your programmers by giving them an assignment with 10 documented steps. See how many of the steps they follow. The typical programmer will follow 6 out of 10 steps, and will only do several of those correctly, which means you have to harrass them to get everything up to specifications. What a nightmare!

How does culture determine what is private or public information?

May 5, 2013 by 123outsource
Categories: India | Tagged , , , , , | Leave a comment

Private or Public: What an Indian Manager Will and Won’t Tell You
To any question that did not involve facts and figures, one Indian software company manager recently replied, “That, of course, is personal.” Had I asked him about what size pants he wore, or his address, or his wife’s birth date? No; I was simply asking for a story about his company and the people who are part of its team.

Guarded managers won’t tell you much
Whether you are dealing with a very successful software company in India or an Indian software company that is still small, most managers or CEO’s have a very guarded approach to talking about their company. They will tell you in very general terms how they help U.S. companies succeed, or will give you lots of numbers about how much they helped raise profits (very good!), but even when you explain that you are not asking for specific names of U.S. companies they have done work for, they are still suspicious about being asked for details. In India, it is just not natural to say much about your company’s employees or interactions. That is considered highly personal.

In America, personal & company details are more public
In the U.S., every rising star, political figure, business person, and software engineer may be found on google at some point in time. The U.S. is a country that is obsessed with the personal lives of almost everyone, and this curiosity has been fanned and inflated by the Internet with the ability to publish and find information so easily. However, looking at the positives, we are open to a wide variety of people and we try to find those who think as we do when we want to do business. This is the main reason we are asking for stories about companies in the first place. The thousands of people who read our blog want to find a like-minded company to do business with. Maybe they are wondering about all the things they read on the Web, and they want to reassure themselves that people in India have lives just like theirs…or in some ways like theirs.

However, intimate details should be private
The intimate details of employees’ lives are, and should be, private. We are not in favor of talking about marriages, children, or any of the silly gossip that movie stars are involved in on the Web. However, if you really have a great team, your Indian software company should be able to tell us, for example, that they all went to the mountains together, or play volleyball together, or eat out together while planning new work strategies. We wonder: do the software companies in India not really know about their employees? Are their employees so uninteresting that they have no salient characteristics? If you have a great team, isn’t it made up of interesting individuals with individual talents beyond what they do at your company?

Snip-its about each employee make us want to call
Maybe Americans are too used to the idea of a software engineer who is also a classical pianist, or a manager who also has a PhD in Philosophy or Comparative Religions, or knows several languages and is a world traveler. We are used to this. Yes, we are spoiled. We are also used to company websites that show pictures of team members and give little biographies about these individuals’ personal interests–besides work. Why? It makes them well-rounded and intriguing, and makes us want to help them earn their salaries. It convinces us to give the company a call.

Despite cultural differences, there are great people overseas
But it is also part of our love of democracy that we believe that at Indian software companies there are also programmers and engineers who do amazing things and have amazing personal stories to tell. We would not have this website if we didn’t believe these kind of people exist in other countries. We believe that there must be some very special Indian programmers or software engineers helping companies in India grow. We are not asking for their names, but we are interested in stories about software companies in India and the outstanding teams that make them work.

India is more focused on work and less on frills
Or maybe in India, people just work. Many of these individuals just work and take care of their families. If they are lucky, they also have some time for spiritual or religious practice as well. Maybe they do not have the luxury of reading a lot, or taking extra courses or degrees, or playing sports or music. Maybe they just work, and they don’t feel at ease to have any personal time or interests. And maybe our wide variety of interests has dissipated our focus on work. Perhaps they, in India, are the lucky ones.

Feeling safe discussing more details
I guess, in the end, many software companies in India feel that giving out any information on interesting employees or teams might tempt some employees to seek more money or other jobs, and it is best to leave things as they are. We still are hoping to hear from a growing Indian software company that values its employees and feels safe enough to discuss some of their valuable skills and attitudes that make them who they are.

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Outsource: e-Karma definition. How does online karma affect you?

May 4, 2013 by 123outsource
Categories: Of Interest | Tagged , | Leave a comment

Many people are unaware that there is a force of nature called e-Karma. It affects your past, present and future. But, few understand this mystical attribute of the universe.

e-Karma
A specific type of karma that results from doing good or bad deeds online. At the time of death of the individual, all karmic debts recorded on the e-Karma server are migrated to a new server where the corresponding individual is reincarnated.

Etymology

Sanskrit: Karma — a deed or action

Greek: The word electronic (shortened to “e” as an abbreviation) derives from the Greek word Elektron, which means an electron.

Q&A

Q. Is e-Karma different from “regular” karma?
A. Yes. Regular karma is accumulated during an incarnation of a living being, and then discharged periodically according to the lords of karma who decide when and where a karmic debt will be “repaid”. Online e-Karma is accumulated on servers, and the repayment of these debts is decided from the custodian of these online karmic databases.

Q. What types of actions lead to bad e-Karma?
A. Spamming is a typical one. Sending useless emails to targetted individuals promoting your service in a way that is not customized to the person’s actual needs. Creating online viruses is a much more serious offense. Creating online articles that misinform the public about non-existant terms is another offense whose punishment is still unknown.

Q. What happens to the worst offenders?
A. There is no definite information available now, but many have theorized that the worst offenders will end up in e-Hell. Those who simply bug others by sending unwanted emails, will in-turn receive unwanted emails themselves. While those who write articles about fake terms — hence misleading gullable members of the public will have to spend time in an ethereal realm where they are entertained with nonsense for a period of time.

Q. What do outsourcing companies do to gain this bad karma?
A. They send emails to people without stating the recipient’s actual name, and without bothering to understand the nature of the recipient’s actual business. It is very unpersonal, untargetted, gets poor results, fails to catch someone’s attention, and creates waste in the e-Universe. It is better that companies promoting SEO, Web Design, and other outsourced services try to get to know the needs of the company they are promoting their products to, and then they will get a much more favorable result when attempting to market to companies — as well as creating much fewer useless emails!

How to create a new corporate culture in 3 easy steps!

May 3, 2013 by 123outsource
Categories: Of Interest, Popular on Google+, Popular on Twitter, Semi-Popular | Tagged | 1 Comment

Creating a new corporate culture is easy with our new powder. Mix with water, get a new corporate culture. It is actually, not that much harder than that, but you need good analytics and cooperation from higher level people at your company to pull this off.

Sometimes, to succeed in a particular market niche, or to be efficient in your company, you need a particular type of corporate culture. If you have a few anti-social types, lazy people, or uncooperative people, that can throw the entire corporate culture off. It is much worse than the fact that those individuals are not producing the types of results you want, they INFLUENCE others in a negative way — and you can’t have that!

Or, maybe the corporate culture you have is uncultural. Let’s say that you can not talk to your employees about Mozart or the finer points of Hungarian literature. Maybe those attributes are important to attracting better future staff members, or perhaps attracting more cultured clients. Remember, high class people are impressed by people who are cultured. On the other hand, most rich people in the United States are culturally illiterate, so maybe culture doesn’t matter.

Putting aside what types of attributes you want in your new culture, you should have good reasons for whatever attributes you want, and a sensible way of gaining them.

If you have a corporation with 300 employees, you might find that people fit your new cultural model to a greater or lesser extent. If you have clearly defined attributes written down, you might find that 100 of your employees fit the model well enough to keep. Perhaps another 100 have a few of the attributes you like and would be worth it to TRAIN to meet some of your other attributes. The remaining 100 employees should ideally be let go — but, not all at once.

Step 1: Start firing the worst 33% of your workforce that doesn’t match your new model

If you have to get rid of 33% of your workforce, you need a timetable for doing so. You need a plan of which types of workers to get rid of first as well. You create an algorithm which takes many factors into consideration. How well someone fits your corporate cultural ideal would account for several of the factors, how well they do their job and contribute in general would account for the other factors.

If you fire roughly 1.5% of your least favorable employees per month, over a period of two years, and rehire people who fit your new corporate cultural ideas to a tee while doing great work as well, you have accomplished much of creating a new corporate culture.

Step 2: Hire new people who meet your cultural and work model to a tee.

Step 3: Culturally mold the employees that you didn’t fire, as well as your new hirees to see if they can match your new model perfectly

Training is the second and potentially more difficult part of the cultural change. You need to INSTILL new corporate values into the workers who you are not going to can. If your new values include being knowledgeable about Mozart as you plan your takeovers, then play Mozart all the time. Give lectures about Mozart to your people. You can write lyrics to Mozart string quartets too.

“We’re going to seize your assets…. I’d like to see you try… Your corporate debt…. It makes me cry… We’ll take you over….. You will see… and in the end…. you’ll understand our decree.”

“Oh no you won’t… we’ll call in the calvary… we know investors… that can turn this around… never mind that our lyrics do not rhyme… you will see that we will save our corporation in thyme!!”

You can play Mozart piano concertos in the morning, sonatas during lunch, string quartets in the early afternoon, and then test employees on their knowledge. Those who can’t deal with the new corporate culture would need to be weeded out slowly over time.

Step 4 (of 3): Continue the process for around three years with any necessary refinements.

The end result after about three years, is that you would have successfully converted your uptight and stuffy corporation into a bunch of music loving nuts who do corporate takeovers and sing silly lyrics to Mozart string quartets. All you need is a vision, a very capable HR department who understands algorithms & counter-harmony, plus a really good corporate training division which hires Russian dissidents who know how to teach music (and chess) really well. A good sound system wouldn’t hurt either.

Good luck!

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How to create a company culture like Google’s and enjoy doing it
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An Indian company learns Japanese culture to boost teamwork
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Is Amazon too touch on their workers?
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Teaching yourself to think of what you never think of

April 28, 2013 by 123outsource
Categories: Of Interest | Tagged , | Leave a comment

Teaching yourself is interesting. Most of us go to school, and the teachers cram our minds full with facts, procedures, rules, and mostly boredom. If you go to school in India or the Middle East, their narrow minded approach to teaching will not teach you problem solving. You will know how to memorize a bunch of dry and boring facts, and not have any good ideas how to interpret those facts unless you are from a very fancy family. If you can interpret, it will be a very “by the book” type of interpretation. Americans typically learn to think, but don’t know anything. Technical skills are dismally lacking, and 90% of our technical staff in our country is Chinese, Indian or from some other foreign country. In any case, putting aside the intellectual limitations of each country in question, learning how to think for yourself is a critical skill to have when you are running a business.

If you run a business, you will quickly learn that the type of questions, problems and issues you have are usually not covered in that comprehensive course in business you took in school. You learned about crunching numbers, analyzing trends, best practices, and other bookish subject matter. But, what do you do when your employees are talking back to you, your clients are unresponsive, and nothing is getting done on time? Will your book knowledge help you now? In some ways it could, but god forbid you run into something that “wasn’t covered” in your text book. Now it is time to think on your own.

The big question is how to become a master of the art of thinking for yourself? The art is all about learning to think of what you didn’t used to ever think of. Many people will have an answer within reach, but think of everything except for that optimal answer. So, how do you get good at finding answers?

If you are constantly challenging your mind to more and more problems, and solving those problems. If you are always interacting with others and hearing their input (assuming they are intelligent), your mind and thinking will expand, and you will get those good solutions coming to mind faster and better every time.

Maybe we as business people should write books about handling REAL problems. Maybe the world needs to see case studies about handling real problems.

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The one out of three rule

April 27, 2013 by 123outsource
Categories: Hiring & Firing, Outsourcing Articles | Tagged , , | Leave a comment

It seems to be the case in most companies that engage in some sort of outsourcing. I noticed that 1 out of 3 workers seems to do their work in a way that I like. If I try six workers at a company for various tasks, I will like 2. Is it possible to find a company where everyone is amazing? I wish! Well, my company hires amazing people, so with us, you can have your cake and eat it to! But, we are special in case you didn’t notice (or, at least we like to think we are).

Even at a place that offered chiropractic work, I noticed that I liked exactly 1 out of 3 of the practitioners. Bizarre. So, there is merit to the 1 out of 3 rule. The trick is to make sure you are ALWAYS working with workers who are favorable to you. If you do, the you will:

Have good dreams at night.
Feel happier
Notice that you start whistling for no apparant reason
Do nice deeds for other without your usual ulterior motivations
And more…

Hire the right people and be happy!

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Roadblocks in the BPO outsourcing profession

April 24, 2013 by 123outsource
Categories: BPO, Hiring & Firing | Tagged | Leave a comment

I love meeting people at new companies and talking to them. Some people are so interesting. It is like opening a box of chocolates with fillings. You never know what you will get when you bite into one. Will it be cherry, caramel, or in the case of some companies — a disconnected phone? But, there are also many roadblocks as well. I have various criteria that I use when selecting a new company. Since I have more experience now than before, I interview more companies and expect more, because I know how happy I will be if I pick someone good!

It all starts with the initial phone call. The salesperson is always so nice (if you can reach them which can sometimes be hard). I skip the companies that don’t answer their phone. I also skip the companies where I can’t talk to a salesperson easily. If they call me back and sound promising then MAYBE I’ll consider them if I’m in a good mood. But, after talking to them, I realize that I need to DIG and see what I find.

My old company started me with a passable programmer. He quit, and was replaced by an idiot. I fired the idiot and the boss gave me another idiot, and then another. There were problems — I asked them to fix the problems, and they said the problems was with the server.

“You’re FIRED”

I tried one company who had a great programmer, but was so BUSY, that work didn’t get done on schedule. How will this love affair continue when I can’t predict their next move and its ETA? My verdict was:

“Indecision and Hmmmm”

A previous company took me on, but then added fraudulent fees to the bill. 3 hours extra for meetings that never took place, and another 6 hours for meetings that took place where the outcome of the meetings was never applied. No consent to pay for meetings was ever given. I’m paying for WORK buddy! Then they tried to charge me 42 hours worth of work to do a project they bid at 12 hours on, but never followed directions on.

“You’re FIRED” — NEXT!!!

At one BPO company, everything was great. I agreed to hire them and all was fine… Until I read the contract. 40 hour minimum — the salesman never mentioned that before. Hmmm. Should I disqualify them from round 1?

I told them

“I like your company, but this is too rigid for this project — maybe next time!”

Another company had a great boss. I talked with him, and we got along. Then, we had a phone meeting with the programmer overseas. The boss kept interrupting and telling the programmer not to answer my questions. What kind of interview is this? The whole point is to get my questions answered, right?
“You’re FIRED!”

The next BPO company was better, but they said they had 40 programmers who knew a particular language. Upon my next call to the project manager, I found out they only had 5. Disqualify? What would Donald Trump do in this situation? But, I liked them, so I gave them the go ahead. Nice people — great communication — super pricing — even better terms! I was able to dial a California number and be directly connected to India where their project manager answered on the second ring and spoke perfect English! Wow! Now that is service!

“We have a winner — YOU’RE HIRED”

There was only one relatively insignificant piece of misinformation here — so far. Everything else was wonderful!

So, as you can see, when you are TRYING to hire a company, and trying to work with them, many companies seem to put a bunch of road blocks in the way of YOU getting your work done. The secret here is to see the road blocks early on, so you can get rid of these bozo’s (American slang for clowns) and move on! I hope you learned something from my colorful experience dealing with the most stubborn and impossible types of BPO Outsourcing companies.

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Techniques for interviewing outsourcing companies

Each rep gives a different answer!

April 21, 2013 by 123outsource
Categories: Outsourcing Articles | Tagged , , , , | Leave a comment

When I interview companies to hire them for various outsourcing processes, one thing always comes true: If I talk to two different people at the same company, the answer is always different. The salesperson tells me one thing and the project manager tells me something completely different.

So, who should you believe? My experience is that salespeople are usually poorly trained. Unless the person doing sales has extensive technical knowledge, I would not believe a word they say, even about easy things. I had one company tell me that they had forty programmers who knew a particular language. When I talked to the project manager, the answer changed to ten. A similar situation happened with another company.

Interview the salesperson to see how they were trained
When interviewing companies, interview the salesperson, NOT to get answers, but to see how they are trained, and how accurate / honest they are. If you can catch them making mistakes, then you know the company is not perfect. However, in outsourcing, NOBODY is perfect. So, if they made one small mistake instead of three huge omissions or blatant lies, perhaps you are in reasonably good hands.

Interview the project manager for actual answers
When I interview project managers and technical managers, they are never as happy or cheery as the salespeople. The answers are often very negative and pessimistic. Interviewing these technical types is a great way to verify point by point what the salesperson said.

Assessing the company
I am very unclear as to whether or not you can assess the quality of a company based on the quality of the sales staff. However, if anyone at a particular company is poorly trained and gives out poor answers to questions, that is a very bad sign. We are all human and people make mistakes, so I would not dismiss a company that has one or two screws loose. However, I would keep a screw count, so that you can compare them to other companies you interviewed. You need to keep track of how competent each person at the company is — that means keep a scoresheet for at least two salespeople per company, and two project managers per company. If you can talk to actual workers, that is good too, because companies normally hide their shameful workers from the public — and for good reason!

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It is fun to do the impossible

April 16, 2013 by 123outsource
Categories: Motivation | Tagged , | Leave a comment

Most people think that they can not do the impossible. But, we have seen sales of particular products skyrocket recently. I hired a new salesperson with a new approach and things are selling like hotcakes. Things that we sold one per year are selling three per day! Wow!

So, after I saw those new sales coming in for several consistant days, I started to believe that the impossible was possible. Yes, it is fun to do the impossible. But, once you do one impossible thing, then you start to believe that other impossible things are possible. It is just that there needs to be a shift somewhere. You could change how you think, or change your approach — which basically boils down to a change in thought that precedes the action.

But, since business is up this year, I wonder how much business could go up next year. So, now I am beginning to believe that my site stats could double in a year. This year we have 25% more unique visitors than last year. So, perhaps we could double next year if we find the critical piece of information which could be responsible for the increase. An increase in quality could make the difference.

I used to think that I was near the maximum potential of what I could achieve. Now, I am beginning to think that there is no end in site. Limitations can really limit your success. And the limitations start upstairs — thats right — in your brain and your consciousness.

So, I look forward to that magical time in the future — whether it is this year, next year, or next month, when we make a breakthrough, figure out how to double our stats, and do the impossible.

What can you think of doing that is impossible?

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