Tuesday, January 26, 2010

Dedicated teams model is gaining popularity

According to "Central and Eastern Europe IT Outsourcing Review 2008" - a research conducted by Ukrainian High-Tech Initiative,during 2003-2007 the customers were tending to switch from project-based outsourcing model to hiring dedicated programming teams, - so that the customers contract and manage IT staff directly. Although fixed-price project model seems to provide less risks, it also restrains significantly the development process and can result in overestimated budgets. According to the research results, since 2003 until 2007 the number of project contracts has fallen by 30-35%.

As one of the answers to Onstartup questions about selection the right agile IT Outsourcing provider Scott Drake, the Owner of the Data Pros (Web development company in Louisville, USA) has made quite an interesting statement - “I built my team in Argentina … I interviewed all of the developers and still made one bad hire. It took two months for them to go into the market to find the right talent that would work well on my team to replace that bad hire. The management was willing to hire another employee for my team because I built a relationship with them and treat them and its employees very well. And they know my intention is to build a mutually beneficial relationship with them and keep my team for at least a couple of years, not just two months. It took me months to find the right vendor/build the right team. Unfortunately, I could not find an easier/faster solution.”

I wonder whether our readers have had similar experience. How difficult was it for you to select the staff for your remote team? Is one development interview enough for the decision? What questions were the most important for you – was it their experience, or ability to solve the problems, or the communication skills?

I have asked Mr Scott Drake some other questions about his experience managing his dedicated team. I will put his answers together along with more relevant data into the next blog post.
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