Just came across this post, called “Hidden Costs of Outsourcing,” from a guy (”Cranky”) who says his last three jobs were managing offshore programmers. (He doesn’t say over what time period that was - could’ve been three weeks!
Despite the whiny tone, he makes some very good points that all who are considering outsourcing offshore should consider. This blog in general is very pro-outsourcing, but Cranky exposes some all too common warts that can show up in the process, no matter what project you’re doing, or on what scale your outsourcing.
He compares offshore programmer at $12 per hour with a US programmer at $35 an hour, in a side by side table. Some of the hidden costs he mentions are:
Lost time waiting for the programmers to wake up and start their working day: 20 hrs/wk +$240
Discovering that while you were asleep, they couldn’t compile what you sent, so they just sat on it: 35 hrs/wk +$420
Training costs for new programmer when the $12/hr programmer quits for a $13/hr job: 15 hrs/wk +$180
On the opposite side of the table, under employee, is n/a.
Whether or not you agree with his math, if you’ve done much outsourcing at all, you may have encountered one of the costs above, or some of the others you can find on his post: “Hidden Costs of Outsourcing,”
In all fairness, there are some hidden costs with your employee as well. How about taxes, unemployment insurance, vacation days, sick pay, personal time off, maternity leave, and personality differences, to name a few.
Who said outsourcing has to mean trading American jobs for overseas workers. It’s about who can do the job better and in a timely fashion.
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