More Outsourcing links


Colombia has "probably the best (technical) talent in South America," says DeLaCastro of Tatum Partners. But there are "real risks for Americans traveling to Colombia."

All this means that outsourcing will increasingly be viewed by venture capitalists as not just a way to save money, but to make money. If done right, outsourcing is a way for small companies to speed development and focus on their core competencies by leveraging cash. A small company's ability to attract venture capital won't be limited to its location, but increasingly to its ability to make the best use of its assets -- both physical and intellectual.

Yes, it's still the cheaper option -- but the price differential is shrinking fast, and the hidden costs can be fierce

So, to put this into perspective. In Germany, (and in Europe), some companies have begun to use the threat of outsourcing to get concessions from their employes, such as longer working hours for the same pay, and to keep them from asking for a raise. Since the EU will be expanded to the east in just eight days, the topic has been over and over in the press since the salaries there are well below the EU average.

Although the whole outsourcing business looks to me a little like the ballon that was the new economy, I think it is the right moment to begin with a solid plan, just in the hope that when the ballon deflates you will be one of the few left standing. Now is the time to push offshoring in the country, but we have to overcome the problem that always plague us here, which is not even our "image" abroad, but our terrible marketing skills. It's no use to have good numbers of world class developers, or even average (which is a kind of market on it's own), if searching for +offshoring +colombia (or something similar) gives you no hits.

Outsourcing to Colombia



Taken from: http://www.confusedkid.com/primer/archives/001685.php

Although I expect this to have its political implications in military help and government intervention, there is a trend that might grow: A New Tide in Offshore Outsourcing

Cost. No contest here. The cost for a managed developer in India was $3,200 per month, vs. $1,000 a month in Colombia. (A managed developer is overseen by an onsite manager monitoring progress and quality, so the cost includes part of the manager's salary.) The difference in costs is so vast that it actually allows K3 group to make money in an area not known for profits, says Ryan. "Typically, with enterprise-application software, consulting for customer specific needs just breaks even. The benefit with having a low-cost development outsourcing partner is that we can make money with consulting."
And it is not just the developing that can be done efficiently and at low cost in Latin America: one other thing that is being left out is the similarity in culture, as well as the strong ties that exist between the two countries. Furthermore, I know that engineers just out of school will kill for a job like this, one that allows them to remain in the country, which is a very attractive possibility, and at the same time increasing their attractiveness in the job market.
I remember one such engineer, Paola. She was thinking of setting up her own company, such an open market was evident to her and her friends.
A easily accessible labor pool, a project that can be developed by stages, and the economies existing in making use of the resources available in a country undergoing a strong economic revival make Colombia a good option. Perhaps there is still a future in that country.


Update: Indian Salaries

Indian Salaries will reach US levels? ... or Will US tech salaries fall to Indian levels?

Hmm ...

Joel already asked the same question!