5 Outsourcing Horror Stories That Will Make Your Blood Run Cold This Halloween

Oct 28, 2016

Software outsourcing comes with risks, and how you can mitigate them is a topic we’ve already covered. Simply find a reliable IT outsourcing company, and you’ll get a great partner that will save you countless hours (and dollars).

However, with Halloween just around the corner, we decided to turn up the spooky and share some terrifying tales of things that can go wrong when you outsource software development.

Without further ado, here are five outsourcing horror stories that will make your blood run cold this Halloween:

1. My Data Was Leaked

You need a piece of software made in a hurry, so you contact the first software development firm you find on Google, as long as they’re cheap, don’t bother to study the vendor’s security approach and disaster recovery plan, rush into signing a deal, and wake up to the happy news that your trade secrets and customer information has been leaked. Or worse — sold to your competitors.

Sounds like a business owner’s worst nightmare? Surely something that catastrophic wouldn’t happen in real life, right? Wrong. A study into Data Risk in the Third-Party Ecosystem (March 2016) revealed that 58% of respondents across multiple industries admit they can’t determine whether their third party vendor’s security policies are sufficient to prevent a data breach, and only 35% say they conduct a frequent review of their chosen vendor’s security measures. Scary stuff.

Read more:

Why Our Model Works Better Than Outsourcing

The Only Checklist You’ll Ever Need to Select a Reliable Outstaffing Vendor

10 Questions We Know You Have About Our Model

2. My Software Has More Bugs Than An Anthill

Outsourcing software development can cost you plenty of money, but if the end result is a poor quality product with bug after bug after bug, what you have is a Halloween horror story. This is a common problem, and there are a few possible reasons why even the best intentions often result in terrible code:

  • The vendor assures you that their top team is working on your project, and charges you accordingly. Meanwhile, the people who’re actually doing the job are trainees or junior developers who aren’t qualified for the task.
  • The vendor has a lot of other projects, and employs software engineers that jump from one task to the next. The result? Loss of focus and a ton of mistakes in the code.
  • The vendor intentionally reduces the quality of the code so that you keep paying for improvements or maintenance.

3. My Developers Left Me — Again

Congratulations. You managed to find a seemingly great outsourcing vendor with an impeccable security policy and top-notch software engineers dedicated solely to your project. Sadly, the fairytale comes to an end when, one by one, the developers you hired start leaving the team. Deadlines get pushed back as the vendor looks for replacements, and the newbies spend more time getting to know your project than actually working on it.

Just when you seem to be getting back on track, another one of your team members hands in their notice, and before you know it you’re caught in the revolving door of people coming and leaving for no reason at all.

Or so it would seem. Even the tech companies that are routinely rated as the best places in the world to work, including Google and Amazon, experience high turnover rates with tenures averaging a little over a year, according to research by PayScale.

If your outsourcing partner doesn’t take the extra step to retain their employees by — first and foremost — providing competitive compensation packages, but also by investing in team building activities and career development opportunities, don’t be surprised when they tell you that your project won’t be completed on time due to staff shortages.

4. Communication from Hell

You know the scene: you’re trying to get updates from your vendor, but the dialogue is starting to look a lot like an attempt to communicate with the spirits during a staged séance — you keep asking the questions, but no answer is ever returned. If you’re lucky, your vendor may forward you from one staff member who’s supposed to be responsible for your project to another one.

Different cultural backgrounds can also turn communication into a nightmare. High context cultures, like Asian, Subcontinental, or Arabic societies, tend to put a greater price on honor and reputation, in some cases valuing politeness over clarity. If you outsource web development to a company from one of these cultures, you might have trouble getting an honest status update if something doesn’t go as planned.

Eastern European cultures, although much closer to the Western mentality, are just as unlikely to be upfront from day one. If you outsource software development to an Eastern European country, the people you communicate with will need to get to know you as a person before they can fully trust you. Get ready to show them your least flattering photos from the last family get-together!

5. There’s an Extra Zero in My Bill

Knock, knock. Who’s there? Invoice. Invoice who? Unexpectedly enormous invoice — that’s who!

The exchange above is what happens when you sign a contract that doesn’t include a full list of additional expenses that may occur. This can include after-hours communication, overtime, and the purchase of software and hardware for the team.

Most outsourcing companies — even the best ones — will expect you to pay for work that isn’t covered by the scope of your initial agreement. However, you have every right to know exactly how much this extra work will cost you, and for this information to be included in the contract.

By now, you’ve probably made up your mind to never as much as think about outsourcing software development ever again. But hold on a minute! There’s one last thing we’d like to share with you:

There Is Nothing to Be Scared of If You Partner with Daxx!

  • We sign non-disclosure agreements with all of our software engineers, and encourage you to do the same.
  • When you work with us, you’re free to use your own email servers and administer your developers’ workstations remotely.
  • Our standard security measures include system administrator support, firewall and antivirus protection, a strictly-enforced password policy, and restricted access to our offices. We’ll add additional security measures at your request.
  • We perform custom recruitment based on your exact requirements: you interview the candidates yourself and personally approve each and every member of your development team.
  • The developers on your team will work solely on your project, so you can rest assured there’s nothing else vying for their attention.
  • You or your Project Manager/Tech Lead will manage the development process directly, so no third parties get in the way.
  • We take care of your team’s office space, which will be located in one of Ukraine’s major tech cities — Kyiv, Kharkiv, or Dnipro, and provide them with everything they need for work.
  • Our accounting and legal teams handle payroll, taxes, and other administrative issues.
  • Our retention managers organize team building activities, get your developers tickets to industry events, and make sure they’re happy.
  • A dedicated HR/Client Manager will always be available to you, and will keep you updated on your team’s progress, help you build a rapport with your engineers, and advise you on proven project management techniques.
  • All of our engineers speak and write English to at least an intermediate level or higher.
  • Ukrainian business practices are similar to those in Western countries, so there’s no need to worry about cultural differences.
  • Our pricing model is very clear: once a month, we send you an invoice that includes your developers’ salaries and a fixed monthly fee for our services.

Want to hire software engineers with Daxx? Send us your requirements or ask for more information using the contact form below.

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