Return to Archive Runtime - The Software Outsourcing Newsletter for Executives and Investors from Accelerance and Steve Mezak Hiring A Core Technical Team Recurring questions that arise when entrepreneurs consider outsourcing are when and how to start.  Do you work with an outsource team from day one?  Do you wait until a prototype and a specification are complete?  Should the startup first hire a core technical team and then augment the internal team's efforts with the outsourced team? For some entrepreneurs, the answer to when to use Outsourcing is, "Never!"  But this is usually an emotional or "gut" response, unencumbered by a rational thought process. Let's look at this reaction.  Why do some entrepreneurs NOT to want to consider outsourcing?  I have heard the reasons expressed by entrepreneurs in several ways: A startup needs all employees in one office to show critical mass How will I control the team if it is thousands of miles away? How can I ensure the team will create quality results? I think the last bullet point sums it up - entrepreneurs are concerned about quality.  How can an outsourced development team create a high quality software product, and deliver it on time?  The answer to this question has two parts. First, the entrepreneur may not have a clear understanding of the process required to create a quality software product to begin with.  Its like they're saying, "I don't really know how to create a high quality software product, and so I want all the developers in the next room until they create one."  Obviously, a better solution is to adopt a good software development process.  Then if the developers are in the next room or the next continent they will have a better chance of achieving success. Entrepreneurs sometimes need help defining the product development process and a consultant or a full time technical employee can provide this.  The entrepreneur must have a product development strategy in mind before development begins.  For both internal and external teams the strategy is the same - you need a specification that defines what the product will look like. When combined with a development and QA process, your results will be a successful product. The second concern for quality has to do with the quality of the team itself.  This is a fair question and needs to be addressed whether you hire an outsourced team or software engineer employees.  With employees, you can look them in the eye during an interview and ask the hard questions.  You can check personal references.  These things must be done to build a good team.  But it takes time... You do not usually get a chance to do this level of investigation with the individual members of an outsourced team.  This is the source of the entrepreneur's apprehension. What if the outsourced team members are no good?  What if they do not show up to work?  What if they get hit by a beer truck on the way to work, or a rickshaw or stepped on by an elephant?!  Hold on!  Take a deep breath and get centered. By hiring an outsourced team you should not have to worry about the individual members on a daily basis. Yes, you should examine their resumes of the outsourced team carefully.  You should check the references of outsourced firm.  Once the outsourced team is hired, you should let the outsourced company manage the details.  They are contractually obligated to deliver your product.  Can you say the same for employees you hire? The software industry is going through a transition similar to what the electronics industry went through 20 years ago.  If you start a hardware company today, you are expected to use contract manufacturing to build your product.  Your product designers create specifications and hand them off to the contract manufacturer.  Design problems, omissions, and changes are handled in a well-defined manufacturing process. The same thing is happening to the software industry today.  Your internal product experts are your Core Technical Team.  They must be skilled at designing and specifying what your software product will do so it will solve your customers' problems effectively.  The core team must also master the process of delivering the product reliably and with high quality. To take advantage of outsourcing benefits (low cost, high quality, etc.) you need a Core Technical Team that interacts heavily with both customers and the outsourced development team.  Your core technical team will not be valued for its ability to crank out code (although members may have this skill) but for their ability to communicate.  The core team may include subject matter experts, able to empathize and converse easily with the customer.  The competency of your core team must be its ability to specify and explain a solution to the customer's problem, not code generation and debugging. Let's consider an example.  Suppose your startup is creating a new messaging technology that will eventually replace email and is impervious to spam.  It uses peer-to-peer web services technology to communicate directly between individual client programs. It will also be compatible with SMTP for an eventual transition from email to the new messaging technology.  Therefore, the product needs to include many features found in email clients - folders, address book, message composition, etc. Who do you hire to help you create this fantastic new product?  If you are a technical entrepreneur you may have already prototyped the messaging technology, say in Java.   Do you then want to personally code up all the other features too?  What if you decide a .NET version is needed or strategic reasons (maybe to position your company for acquisition by Microsoft)?  Do you want to take the time to learn the .NET Studio environment before you can personally code your first product?  Probably not. Clearly you need a Core Technical Team that can help you specify the product features in detail.  You don't need programmers at this point but people with some programming skills that can replicate and radiate your passion for bringing your cool new product to life and wipe out the evil scourge of spam in the process! There are several ways to form a Core Technical Team. Often your core technical team can start off as a single person.  Additional people can be hired over time to provide nation wide support with customers.  Some will have technical skills and will help manage the development and release process.  Others may focus on product marketing activities. Two of the four founders in one startup I know were subject matter experts and became the core technical team. The extra help they needed for software design came from the outsourced company's project manager. Another startup hired a database administrator and a software architect to form a Core Technical Team. The team was lead by a third person that was technical but spent most of the time performing demonstrations and talking with customers. Together they wrote the product specification and closely managed the outsourced development of the product. The size and structure of your Core Technical Team will depend on the complexity of your product, your budget, and the available candidates that are compatible with your company and own technical strengths An outsourced development team is a valuable strategic resource.  You only need a few employees to effectively manage the process of developing your product.  You save a significant amount of money by using low cost outsourced development.  In addition, the low head count required in a Core Technical Team to manage the process also saves you money and preserves company equity. It is an unbeatable combination. Vision Resources Are you wondering how you will select an expert offshore team to develop your software? Use the Accelerance Vision Resources(sm) outsourced vendor selection service and cut the time of your vendor selection process by as much as 90%. Vision Resources leverages members of the Accelerance's 17 teams in 14 countries around the world. Click here to learn more about Vision Resources Accelerance, Inc. delivers impartial & expert strategies and services for risk-free outsourcing of your software development. Visit our web site at www.Accelerance.com   Until next time, Steve Mezak Accelerance, Inc. Risk-Free Outsourcing www.Accelerance.com 213 Garcia Avenue Half Moon Bay, CA 94019 1-650-712-8990 Contact me by email (c) 2005 Accelerance, Inc. All rights reserved. You are free to use material from the "Runtime" eZine in whole or in part, as long as you include complete attribution, including live web site link. Please also notify me where the material will appear. The attribution should read: "By Steve Mezak, CEO of Accelerance, Inc. Please visit the Accelerance web site at http://www.Accelerance.com for more information and resources on outsourcing and creating great software products."