More Than Cheap Labor: 7 Things to Know When Looking for an Offshore Team
September 29, 2008
Maybe you’re working with an offshore team, or maybe you’re thinking about it. Or worse yet, you’ve been burned by an offshore "software sweatshop". We’ve all heard offshore outsourcing horror stories. There are obvious advantages (and disadvantages) to outsourcing. Here are 7 tips to help you choose the right offshore partner.
High value, not low cost — Sounds simple, but you get what you pay for. Avoid vendors promising high level technical skills at ‘bargain basement’ rates. Look for a team that loves what they do and that compensates their employees generously. Low price does not provide value, proficient programmers who work for a company they love does.
Do you see what I see? — If your development team doesn’t see the vision, you’re doomed; doubly so if they’re half way around the world. If you’re building a product that you plan on taking to market, you need to find a team that has a vested interest in your success. The real value in offshore development is in nurturing a team that matches your corporate culture and who understands the subtleties of your business.
Culture Shock — Are you focused on immediate results, organic growth and impeccable quality? Find a vendor who feels the same way. A cultural mismatch will definitely end the relationship. Ask lots of questions to unearth the underlying culture that governs how they do business.
Most Vendors are the Same — Outsourcing is more about trust and reliability than cheap technical skills. Companies that flaunt their technical competency are no different than their competitors. Look for business acumen and not tech skills. Throw them a project and see how well they meet incremental milestones, the types of questions they ask, and how responsive they are.
Fanatical Commitment — Technical skills are easy to find, reliable people are not. Most offshore vendors don’t understand the concept of a deadline. As a business, you can work around technical limitations, but you can’t work around people who aren’t committed. Find someone who does what they say. Unexpected problems are bound to occur, but at the moment of truth your vendor should be mature enough to roll with the punches and get the job done.
Ask You Tough Questions — People who are good at what they do aren’t afraid to ask tough questions. Questions show that they know who they are and what kinds of problems they can solve. In an industry saturated with ‘yes men’, an inquisitive partner forces you to re-think how you do business.
Maturity to Say "No" — Finally, it’s extremely rare to find a vendor that will tell you like it is. We’ve heard countless stories of offshore firms over-promising and under-delivering. You need to look for a partner that can be honest with you from day one, even if it means that they lose your business. A company that sets up realistic expectations is a company you can rely on, even if it’s not the answer you wanted to hear.
TECH cocktail Community Contributed Knowledge
Raza Imam is Managing Partner of Chicago-based global software engineering firm, Adaptive Solutions, Inc. With a keen understanding of offshore development, ASI is focused on providing world-class service, enabling our clients to focus on innovation and growth.
He is also author of the outsourcing blog Software Sweatshop
TECH cocktail Champaign-Urbana Preview
September 25, 2008
We are excited to be bringing TECH cocktail down to the heartland today as we host our first Big Ten Conference campus-style event near the University of Illinois Champaign-Urbana campus and research park. With the support of the Champaign County Economic Development Corporation and Fox/Atkins Development, LLC we are pleased to be hosting TECH cocktail Champaign tonight from 5:30 to 8:30 p.m. CST. More information about the Champaign-Urbana TECH cocktail event.
The event will show off six local Champaign-Urbana startups which will be demoing in an expo-style at the event. The six startups demoing include:
Autonomic Materials Inc. (AMI) - a business of commercializing disruptive scientific discoveries relating to self-healing polymers, representing the scientific team at the Beckman Institute at the University of Illinois at Urbana-Champaign that has created a fundamental scientific discovery in material sciences that will revolutionize the way many materials across a diverse cross section of industries exist today. Initially, the company will focus its commercial development efforts on self-healing polymer coatings for anticorrosion applications.
Cazoodle - a startup company from the University of Illinois at Urbana-Champaign (UIUC), provides software and internet services for Web search, integration, and mining, with a central objective to “deepen” search on the Web–to access the vast amount of data beyond the reach of current search engines.
ISS - the overall goal of ISS is the commercialization of the instrument for clinical applications, specifically in Cardiovascular/Cerebrovascular and Sleep Medicine. After obtaining the ISO 9001:2000 certification on September 1, 2005, ISS is preparing the documentation for the submission of a 510(k) pre-market notification with the FDA for the approval of OxiplexTS. An ongoing multi center clinical trial in Sleep Medicine (Carle Foundation-Urbana, IL; UI-Chicago; UC-Irvine; U-Stanford) is aiming towards this goal.
Network Geographics - creating tools to simplify and automate the analysis of changes to an enterprises security stance. We envision that such tools will be useful as part of the standard operating procedure for enterprise IT members. We also anticipate such tools will be useful to people auditing the security stance of a customer’s installation. Thiswhite paper provides an overview of our tool capabilities as they pertain to the enterprise IT environment.
NPL Associates, Inc. - solving tomorrow’s energy problems NPL pioneered the NaBH4/H2O2 fuel cell technology in the United States. NPL Associates, under a DARPA SBIR contract, has demonstrated for the first time the feasibility and excellent performance of peroxide-based fuel cells. NPL has thereafter been awarded a DARPA Phase-II grant to continue on the regenerative version of this technology.
Snap and Buy - an intuitive and social mobile service that enables users to receive immediate access to price-comparison, reviews and other product information simply by taking a picture of the barcode of a product using their cell phone. No software downloads are required. Additionally, Snap and Buy will instantly poll the users’ Facebook friends to get their opinion on “Should I Buy?
Special thanks to Tony Millenbine for helping to organize our first Big Ten-style TECH cocktail event. And don’t forget to join the TECH cocktail COMMUNITY at: iam.techcocktail.com.
UIUC Mini-Tour: Happening Before TECH cocktail Champaign Tonight
September 25, 2008
TECH cocktail Champaign attendees are invited to go on an informal tour of some cool UIUC technology. The tour is scheduled to start at 2:30 PM on Sept 25 in the Digital Computer Lab (DCL) on the north side of campus located on the corner of Goodwin and Springfield.
You are free to join the tour in progress if you do not arrive by the 2:30 start. Check in the DCL to get connected to the tour. The tour will be completed in time to get to Houlihan’s by 5:30 PM.
The group will tour the Central IT Data Center, the SuperComputer Cluster, and if time, the Siebel Center.
A big thanks goes out to Bob Waldron for getting this all organized within the last couple of days.
Interact2008 Comes to DC Next Week
September 25, 2008
There has been growing attention to the start-up scene in the DC metro area in the past few months. More and more start-ups are launching on a regular basis there are a number of events popping up. One event that is sure to bring even more attention is InterAct 2008.
INTERACT will gather together the top creative, strategic, and tactical marketing minds to speak about proven methods in which Interactive Media and Web presence can achieve the following: Increase market share, increase awareness through branding, increase sales through Web presence, increase profitability though e-commerce, increase knowledge of best marketing practices on the Web, state-of-the-art mobile marketing, plus, futuristic outlooks from subject matter experts on how Interactive Media will shape the future growth of National, International, and Global companies in the future.
Frank Gruber TECH cocktail co-founder, will be speaking at the event. This event should not be missed by anyone looking for new ways to build their brand or market their site. If you register using this link you will receive a discount on admission.
How to Turn Website Visitors into Sales
September 24, 2008
These days, most of us are pretty good about monitoring our website activity. We know our “hits” from our “page views” from our “visitors” and many of us track those numbers religiously. Unfortunately, though, those numbers only show you who reaches the virtual door. What happens after a potential buyer steps inside your website? Too many companies, even those spending hundreds or thousands of dollars on online marketing, focus so much on driving website traffic that they fail to convert that traffic into sales.
Fortunately, it’s getting easier and easier to measure your online sales and track potential customers. Here are a few tips for finding the gaps potential customers fall through and patching them up.
Know Your Conversion Rate
In the industry, “conversion” is just a fancy term for turning visitors into customers. Conversion rate is the percentage of visitors that reach a specific business goal, whether that’s a sale, lead, or download. It sounds simple enough, but the first step to improving your conversion is to track it and establish your baseline. Industry experts suggest that average conversion rates run 2-3%, but real numbers can vary wildly – honestly assess where you’re at now and work to improve it. Fortunately, many analytics tools (including free tools such as Google Analytics) now make online conversion tracking easy.
Find Your Gaps
Once you’re tracking your conversions, map out your online sales process. A typical process (sometimes called a “conversion funnel”, since it’s wide at the top and narrow at the bottom) may look something like this:
- Home Page
- Search Results
- Product Page
- Shopping Cart
- Order Form
Of course, the path any given visitor follows could be very different, but once you have a sense of the ideal path, you can start to review your website analytics for gaps. For example, does traffic fall off a lot between your shopping cart and your order form? Once you isolate these gaps, filling them becomes much easier.
Make Actions Clear
In any online sales process there are multiple calls to action, decision points that you want customers to follow. One of the easiest ways to improve conversion is to make your calls to action clearer. For example:
- Make links look like links (i.e. blue and/or underlined)
- Make buttons look “clickable”
- Make buttons visually distinct (large, a bold color, etc.)
- Use action-oriented copy (“Buy it now!”)
Test, Test and Test Again
Don’t leave website changes to chance - test them, and let the data guide your decisions. This can be as simple as a basic “split” or “A/B” test, where you serve up two versions (A and B) of a page, copy, or image (split 50/50) and measure which one generates more conversions. These days, website testing is easier than ever, thanks to free tools like Google Website Optimizer. Testing is not only incredibly effective, but it can go a long way towards ending arguments over opinion, especially in larger organizations.
Make Improvement A Habit
Hopefully, this gives you a few ideas for how to get moving on the path to increasing conversion. Ultimately, understanding your website data and improving your online sales process should be a long-term habit. Honestly assess where you’re at today, listen to your data (and your customers), and start testing improvements methodically, and you’ll be off to a great start.
TECH cocktail Community Contributed Knowledge
Dr. Peter J. Meyers is the President of User Effect, a former start-up executive, cognitive psychologist, and lifelong programmer. User Effect specializes in helping online businesses understand their customers and convert visitors into buyers. Pete can be reached directly at peter@usereffect.com
Ars Technica Party in Chicago Sept 24
September 24, 2008
Ars Technica, a Chicago-based media company that was purchased this year by Condé Nast, is hosting a party Wednesday, September 24, 2008 at Lumen in Chicago. The event kicks off the Wired NextFest, a two-week-long exposition of “unique and bold exhibits of sustainable design, next generation healthcare, interactive art and games, humanoid robotics and more” starting September 27.
Here are the details:
Location: Lumen - 839 W. Fulton, Chicago, IL
When: The event takes place Wednesday, September 24, 2008. Doors open at 6:30pm.
Beer: Courtesy of Becks, there will be free beer between 6:30 - 8:30pm
Food: There will be no food, please eat beforehand.
To attend you must RSVP via email and please include your name.
From Idea To Startup
September 18, 2008
Do you have a great idea? So what are you going to do about it?
Many of us that love technology always have those little ideas that pop into our head. You know the ones that say “Man I wish there was something that did insert idea here”. Did you ever stop and think that you could actually take that idea and make it a reality? In today’s technology landscape, the barriers to entry are so low, you should seriously look at taking the next step. Once you do, you never know what can happen.
About 18 months ago, Amazon had recently released their new cloud storage platform, S3 (Simple Storage Service). I thought it was way cool, but seemed to be lacking something, an easy interface to manage your data in their cloud. Around the same time I started using an app on the Mac called Yojimbo. It is a really cool app that lets you aggregate data, web pages, documents, etc into folders and tag them with metadata. This was great except for the fact that all that data resided on my laptop. I could not get to it while at work, on travel, or just away from my computer. Then one night I had THAT question pop into my head. “I wish there was a app like Yojimbo but on the web.” That was my spark.
I thought about it for a while, as many do. I wondered if I should do anything, but in the end I decided I was going to do something, anything and at least I could say I tried. I had read books like Founders at Work and gleaned a lot of great insight and saw a direction I wanted to go. I decided from the beginning I was going to do as much as I could on my own and control as much of it as I could. I began with small scribblings in a moleskin of design concepts and notes here and there on business plan stuff. Eventually a purpose, direction, and design came out of all of this.
The next step was to figure out how to take those ideas on paper and make them into a functioning app. I knew form the beginning that I was not the person to do this. I could have noodled my way through, but the time it took for me to do that would have been counterproductive. So I decided to place a posting on Elance and let developers bid on my project. Eventually I chose a provider and the work began. I think the most important advice I can give you about this part of the process is to maintain a strong communication channel to make sure your wants and being implemented how you want them to be. You are paying the bills, so make sure it is done properly.
It was a long process but in the end I got an application called MyDropBin, which is a user front end to your very own Amazon storage space that allows to save and share content, static and dynamic, and pay only for the amount of storage space you use. It has been a great feeling just taking the step. I did not spend a lot of money, and any that I did, I considered in investment in myself.
What has been so great about the process is the journey it has put me on. I have tried to use social media to leverage PR for the product with virtually no PR budget. It has afforded me the opportunity to meet great people and do a lot of really cool things. It seems doors open and other doors and opportunities present themselves, ones that never would have had I not taken the first step. The product has been running along. Sure it could use some tweaking here and there and I do what I can where I can. I have a full time job and kids, so time is sometimes hard to come by, but I do my best.
Recently I was listed in the Amazon Web Services Solution catalog and got a lot of registrations every day of people stopping by to check out my product. I try to interact with all of them and find out what they think about the application and what can be done to make it better. Eventually I will be able to start another development iteration and take the product to the next level.
What have I learned? You never know what can happen, so take a chance and see.
TECH cocktail Community Contributed Knowledge
Jimmy Gardner is the founder of MyDropBin and 2Plus11 Technology. He works in the technology field as a government contractor. He also blogs at East Cost Blogging. He can be reached at jimmy@eastcoastblogging.com. Or add Jimmy as a friend in the TECH cocktail COMMUNITY.
Gary Vaynerchuck Returns to Chicago This Saturday
September 18, 2008
Gary Vaynerchuck passionate wine expert, entrepreneur, and host of Wine Library TV will be returning to the Chicago area. Gary was in Chicago earlier this summer as the keynote speaker for the TECH cocktail CONFERENCE.
Join him for an intimate evening at the historic Woodstock Opera House. The event will be held September 20th 2008 at 8pm. Gary will discuss his passion for wine and join guests for a wine and cheese reception. He will also be doing a book signing. Frank Gruber, TECH cocktail co-founder, will be introducing Gary at the event.
Tickets are still available. If you’re in the Chicago area this is an event that should not be missed.
ITA Event with Jason Fried of 37signals: Free for TECH cocktailers
September 16, 2008
This is just in from Sarah Habansky over at the ITA:
ITA Speaking of Success: The Story of 37signals Featuring Jason Fried
Tuesday, September 23, 2008
5:00 pm – 6:30 pm
ITA TechNexus, 200 S. Wacker, 15th Floor, Chicago
Free for TECH cocktailers: Just use the code TC PARTNER
Register: https://www.illinoistech.org/calendar.aspx/1024
The Speaking of Success program features Chicago-based technology companies that have achieved remarkable revenue success and transformed their markets in the process. Join us as we highlight the story of 37signals featuring Jason Fried.
Jason Fried is the co-founder and President of 37signals, a privately- held Chicago-based company committed to building the best web-based tools possible with the least number of features necessary.
37signals’ unconventional approach to business (don’t hire a PR firm, don’t spend money on marketing, don’t have meetings, don’t work together in the same physical space, etc.) brings a fresh new perspective on how to be an entrepreneur and build a successful business today.
37signals’ products include Basecamp, Highrise, Backpack, Campfire, Ta- da List, and Writeboard. 37signals also developed and open-sourced the Ruby on Rails programming framework. 37signals’ products do less than the competition — intentionally.
Jason believes there’s real value and beauty in the basics. Elegance, respect for people’s desire to simply get stuff done, and honest ease of use are the hallmarks of 37signals products.
Sponsored by: Travelers Insurance, Technology Division
Announcing TECH cocktail DC 3 - RSVP Now!
September 15, 2008
We are excited to announce TECH cocktail DC 3!
We hosted our last TECH cocktail DC in the spring and since then have hosted a conference in Chicago, as well as mixer events in Chicago, Boulder and Boston. In case you missed these events you can check out the TECH cocktail photos. Make sure to subscribe to the DC only TECH cocktail email updates to keep up to date on what we’re doing in DC.
Connect with other TECH cocktail’ers before and after the event at: iam.techcocktail.com.
Here are the important details:
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Date: Thursday, October 2, 2008
Time: 6:30pm - 9pm
Venue: MCCXXIII: 1223 Connecticut Avenue, NW - Washington, DC 20036 (Map)
RSVP: tech-cocktail-dc-3.eventbrite.com
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If you are interested in sponsoring TECH cocktail DC 3 we still have spots open so please contact us as soon as possible or just purchase a sponsorship online. We run these events to break even and would love to do so on this second event. Also if you are interested in demoing your startup product or service please contact us.
See you there!
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Sponsors
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Preferred Services Providers
Preferred Accounting Services Provider: Frost, Ruttenberg & Rothblatt, P.C. 
Preferred Legal Services Provider:
Hinshaw & Culbertson
Preferred Charity:
Teaming for Technology
Preferred Creative Service Provider: Jess3 
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