Failure is Key To Outsourcing Success

October 25, 2007 by stedjamulia.

One of theories I subscribe to is the Garbage Can Model. The model was first conceived in 1972 by Michael D. Cohen, James G. March and Johan P. Olsen. The model is based on the premise that many solutions are created and trashed, but during the process of creation and failure, new problems are discovered. These problems are eventually solved and success is achieved.

This pattern of success has been tried and tested by many organizations, and successful products have been born as a result of many prior failures. Some of these products include the iPod and Post-it Notes. The same process applies to outsourcing.

I believe to find the right outsourcing process and team requires trial and error. Entrepreneurs will learn a lot about outsourcing the first time they try it. They will learn even more the second, third, and n’th time. They will understand the hidden costs of outsourcing, how to work and incentive their developers, their teams capabilities, what are realistic development time lines, what product management process and documents works best for their team, how important testing is to ensure product quality, what hours are required from the product manager/owner to make sure the project is a success, and a lot more.

Gaining experience in outsourcing is invaluable, and learning how to become successful can truly save you a lot of money. For every one person that succeeds with an outsourcing project, there are others who fail. Failure is not bad. Matt Glotzback, director of product management at Google Enteprise, said, ” There is no penalty for failure. In fact, we encourage it because if you’re not failing, it means you’re probably not trying.”

Hiring your own local developers, nearshoring or offshoring, will each have their own similar issues. I have watched companies fail in each one of these scenarios. I have also seen companies equally achieve success. Remember, failing wisely is a sign of progress; just make sure your team can pick right back up and work harder to succeed. This is the key. Running a successful outsourced organization not only adds value to your company, but it also gives you a strategic advantage over a competitor who may have higher operation costs from having a local expensive development team.

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