Can Small Companies Successfully Outsource?
Small company CIOs say they have little interest in increasing their offshore outsourcing in 2008. That’s according to a survey performed by the Robert Half recruiting company.
What’s more, 94% of CIOs surveyed said they don’t outsource IT jobs outside the U.S. at all. And 59% of have stopped IT outsourcing because of “management challenges” as the top reason.
Only 3% of companies with 100 to 250 employees do offshore outsourcing. Here’s several reasons according to a Robert Half executive:
“Researching viable vendors, and teaching them about the company and its products, management style and quality control require a substantial investment. Large companies may be better positioned to absorb the costs of both initial setup and ongoing oversight, and to benefit from economies of scale.”
I agree.
The survey deals with IT outsourcing in general and not just software development but I think the same lessons apply. Large or small, you have to be prepared to handle communication challenges and be able to describe what your software needs to do.
At least with Accelerance, you have instant access to those “viable vendors” that seem to elude the survey respondents.

















