Sunday, December 04, 2005

Competing With Overseas Outsourcing

In your user's group discussion list we were discussion how to compete with overseas outsourcing as a software developer. Michael Cline proposed the following question and list of possibilities. I responded to each suggestion with my take on it (Michael's comments are in italics.)

. . . what do Boise Idaho developers do on an individual level?

--Increase our education?

Yes, by all means. Be strategic in what you learn. It isn't all about just picking up another programming language. Many times developers lack in some social skills, so it would be a good idea to learn in that area as well. Learn methodologies and learn the domains in which you create your programs.
--Become solution architects instead of developers?

Maybe. Is that what you want to do? I think it is important to be able to see the big picture, but don't give up what you are good at and what you love. Maybe when you try solution architecting you might like it.

--Be willing to work for lower wages?

Actually I would say no. If we start to compete on price then we will loose. We simply cannot survive on a wage competitive with Indian programmers. Once we start lowering our prices then we become Walmart and we only get hired as long as we are cheapest. As soon as someone else in town lowers their price, or your customer gets the nerve to go over seas then you loose your contract. Be expensive and be worth it.

--Find an economic niche that is not likely to copied by others?

Great idea. Make a really tight niche and your demand goes up. And if your demand is high, then so are your prices. Of course be sure there is a demand for your niche.

--Become an expert in a specific area?

Same as above. Find one thing you do well and do it better then anyone else. Did I mention that you will need to make sure everyone knows you are an expert in that subject? Doesn't do anyone any good if no one knows you are the worlds best multi-threaded game programmer in COBOL. Start a blog and tell the world.

--Make more significant efforts to learn the businesses of our clients so that we know them better than anyone else can?

This is where being local really rocks. If you know their business better then anyone else then price isn't an issue any more. When they take into consideration the cost of training some really talented Indian programmers in all the fine details of their business then you are all of a sudden a lot more affordable. Since you are local, and just keep showing up and taking them out to lunch and such, they never bother looking elsewhere.

--Change occupations?

Always an option, but frankly most left brain professions are in the same boat. The service industry has a high demand I hear. Frankly if you are not following your passion you are not serving anyone. If your passion really is burger flipping then change industries. Chances are if you are not happy in what you are doing then you are not as effective as your could be. Find a occupation you enjoy, then excel at it.

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1 comment:

Edward said...

Well done for posting this - I gave a talk in Italy this year where I stressed the reality of global markets and how they impact us locally.

Your point on knowing the local businesses better than anyone else is perhaps the only chance one has - with relationship marketing, good acumen, a flair for design and strong values you can compete.

What you've not addressed (unless this could have been implied by the suggestion to become a solution architect) is lowering the cost of engagement for the client by using offshore labour - that is perhaps the bullet most people will have to bite - as where complexity is not apparent commoditisation will dominate - open source solutions being a prime example of reduced barrier to entry for many solution providers these days.