Service providers tricks

Alex Morgunov

Alex Morgunov

Project Lead

Service providers tricks

My colleagues won’t be happy when I share it with you.

Customers of outsourcing – you are extremely brave people. I really admire you.

You work with remote developers and team. You send them money which you got by hard work.

And at the same time  it is difficult to control the final results.

In addition It is also difficult to distinguish if there is really professional or just junior developer. Especially when you do not have experience in field.

Personally I always prefer to work with people from my country and even from my city. It happens when I look for new designer or html markup guy.

I wanna see my subcontractor’s eyes before I can trust him an important chunk of your job.

While observing and communicating with my other colleagues I’ve got different stories on how they tricked their customer. I wanna warn you.

I really prefer transparent relation and visibility so it can be our crucial advantage. Of course after great a Ruby on Rails development service 🙂

One Skype – six different people

In many IT companies owners are not happy to tell their customers that they have a high level of staff turnover. So sometimes customers won’t even know that it happens even within his or her team.

In one company there is special corporate Skype policy, and after changing position a new developer works under the same account, e.g. with “Alexey” account even though his name is Andrew.

In many cases the customer doesn’t really understand that he has to work with a new developer. The new programmer will spend additional time to get into the project and sometimes the customer will even be charged for this.

Big chain of subcontractors

When you give some work to an IT company – are you sure the tasks will be done in-house?

The company might not have enough source or just does not have the expertise. Are you OK if all the work is being done by Chinese and Indonesian freelancers?

And the longer the chain – the worse communication.

Senior mask for junior

The salaries of some Ukrainian Senior developers sometimes reach $84.000 annually and even higher (and they almost do not pay taxes), so it is about $44/hour cost for the service provider. Which margin can you make with this expenses? Not much. Even if you pay two times less to your developer.

However, junior developers get much less. Sometimes 20-30 times less.

So most of the money of outsource companies nowadays is made on Junior and Middle developers.

Pretty often, the company will allocate resources for new project Juniors but charge as if they were Seniors.

Delayed-action mine

I knew one developer who put additional problems to slow his code, so that in future he would be paid for resolving them.

If you pay on a Fixed Price model to your development team be extremely careful, especially if your tasks go to the end.

Showing off

Each customer cannot see some code optimisation or just simple refactoring, but everybody can see interfaces or design changes.

So when you regularly report progress to customers it might be a temptation to show most visual side and slow down some crucial backend changes.

I really hope the current article will help you avoid these problems.

Contact me if you already have some similar problems with your development team. I can probably advise you on how to deal with this.

Cheers!

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