Four Reasons Offshoring hurts startups

The top 4:

1. Loss of Business Focus – Current employees who are onsite are not going to be too convinced that you, as the Ceo, are making decisions that are best for everyone’s future in the company. Many of these employees are the ones you started the business with and now your stabbing them in the back. You still want these back-stabbed employees to still bring the level of dedication that they brought fresh into the company? Kiss that good bye.

2. Abandoned relationships – Now that you – the ceo have decided to save money and get piss-pour work overseas you may not realize it, but in the process are destroying colleague relationships that have been established decades ago and by laying off others, I am certain you will not make current employees happy.

3. Time Zone Differences – Imagine you run a small business ( > 10 employees ) you decide to save some more money for yourself (as if you don’t do that already). Meanwhile, your new employee overseas is running into a problem with some of his work, but its 3am in the United States. Therefore, he has to wait until at least 8am here for you to wake up to respond. By the time you wake up, its time for him to go to bed. For the workers in the United States – they cannot help the guy overseas because hes sleeping. When push comes to shove, someone is going to have to make a sacrifice; sleep. By being fatigue it leads you to poor productivity.

4. The Overlooked Cost-Over-Time – Have you considered the future of business if an employee’s work isnt sufficient for your needs? Suppose a company hires an overseas programmer for $15 per hour, that employee works 40 hours per week totaling $600. An onsite programmer is $30 per hour, practically double that of an overseas programmer.

See the huge difference? Not yet! Let’s say the overseas guys code is piss-poor then you have to consider his $600 per week to work on that code, plus some mis-communication time of yours, then either you (let’s say your worth $75 per hour) or your lead programmer onsite will need to fix the code if it takes whomever fixes it around 5 hours, that’s $150 upfront. That doesn’t include the 3 hours out of 8 hours in a day he now wasted trying to fix lousy code where he could be using it to fix his own problems. The problems go back and forth, on and on.

One Response to “Four Reasons Offshoring hurts startups”

  1. [...] you going to outsource or are you not? The real question you need to ponder is making a bit more profit now and not getting the best quality of work worth it or is building up a solid customer base over time [...]

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