Offshore Outsourcing Alternative: College Students
Posted June 5th, 2006Categories: Technical, Corporate Life, Programming, Design, Planning, Project Management
In today’s competitive software development world, companies are experimenting with many scenarios to reduce the cost of their software. Some companies prefer to develop everything in-house. Others prefer to outsource everything. With both options being rather expensive as professionals aren’t exactly the most affordable, some companies are considering outsourcing to companies abroad.
Offshore outsourcing has been proven to succeed for some companies, but it isn’t the alternative choice for everyone. One alternative with many similarities is to use college students as a workforce for the same elements you would consider off-shoring. I’m sure there are some companies that have found the off-shoring business model suits them perfectly. I say “good for them” if they got it to work out the way they wanted.
I have to admit that I’ve only been involved with one major project that involved an offshore development team and the entire experience was horrible. I can’t say much for how it works now (a few years later), but I imagine things have probably gotten better. What I am interested in pointing out is an environment I’ve seen work very successfully with many similarities.
Finding the need for alternative labor
I worked for couple of companies where it was difficult to find a lot of people with the same skill sets we needed. There are a number of reasons, be it political, personal, or financial that a company will dismiss off-shoring as an option. These types of companies liked to “grow the talent from within” by bringing in inexperienced new-hires and molding them into the “resource gap-fillers” they needed.
Advantages to college students
When having to tackle an extremely large project while very short on resources, creating a team of college students and training them to use the selected tools and obtain the needed skills for awhile before tackling the “real” project proved to be quite a nice plan. I’ve seen many advantageous results that weren’t even expected:
- New Perspectives. With a group of inexperienced people, you have a new opportunity to take advantage of a mostly unbiased pool of ideas for obstacles you encounter. This is most helpful in the brainstorming sessions for proposing solutions.
- Larger learning capacity. Having ten individuals taking the place of a couple professionals allows you much more learning bandwidth for the group. Ten people learning new things over the course of the year might allow you to have people specialize in different areas to cover more ground than just two people normally would. (Some would say professionals can learn far faster and would cancel this point out, but over time the quantity of people tends to outweigh the experience factor.)
- Retention value. Having trained the larger number of new employees on your systems, when they finish their degree and become eligible on the job market they are far more valuable to you than any other fresh graduate. They’ve been exposed to many existing systems in your organization and can “hit the ground running” as opposed to learning from scratch and relating to other experiences to make up ground.
- Finding the “Gold Nuggets”. Of the many college students/interns you hire, you often find the extremely brilliant ones that can handle the workload of a Jr. or Mid-level professional developer. The advantage here is that you don’t pay them nearly what their professional equivalents would earn. However, the moment they get their degree they have to be given ample salary offers to compete with others that will want them. For those that aren’t worth what you’re paying them (as little as it is) you can simply let them go on the next turnover schedule to look for more worthwhile replacements.
Need a well-rounded group
While “growing the talent” for the skills necessary to build the project, you also need to have experienced members to help grow the group into a more well-rounded unit. In order for the students/interns to be able to fulfill their roles as a workforce, they’ll need examples to follow from more experienced professionals.
The combination of the experienced professionals with the students make for a very comparable model to most off-shore outsourcing organizations I’ve seen. Though the off-shore developers may be able to turn around a product in a much sooner timeframe, the advantages mentioned above make more sense for an organization working on an application it intends to support internally.
Conclusion
To conclude this discussion, I’ll simply ask what you think on the topic. I’m not saying either is ineffective, I’m simply saying that I’ve seen one be more effective than the other and am interested in what others have experienced. Has anyone else out there been exposed to both environments to be able to compare the two and comment on their findings?
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Explore posts in the same categories: Technical, Corporate Life, Programming, Design, Planning, Project Management
June 5th, 2006 at 8:27 am
Wow, it’s almost like they’re stemcells. So adaptable, so versatile. How amazing.
No seriously, the “golden nuggets” can work maybe 4 months out of the year, and are being courted by fortune 500’s. Do you really expect them to stick around?
June 5th, 2006 at 10:57 am
They don’t normally stick around after graduating, and most fortune 500s are waiting for just that…graduation. It’s the few years they’re around working on the degree that’s the key here. They’re likely going to cash in on the experience you’ve given them through higher salaries at another company, and you’ve cashed in on their work. And if you manage to convince one or two to stick around, it’s definitely a win.
June 6th, 2006 at 3:06 am
dont’ delete my comment, you jerk!
June 6th, 2006 at 7:45 am
As soon as you learn to post with more proper etiquette, I’ll consider it. Amazing how easy it is to point fingers and call names with so many accusational assumptions when you’re anonymous. Had you kept the tone of your post at a more considerate level, I’d have simply responded with my point of view in a more conversational manner.
As it is now, I enjoy allowing anonymous posts. This is not slashdot, and I will maintain a verbal decency level as I see fit. Perhaps you should be attacking the post, and not the poster. It’s one of the highly effective blogging habits. If you really have a point to make (and you had a few I agree with even though you’ve pre-judged me and thought I wouldn’t) don’t clutter it with all the derogatory statements and you might actually get an audience.
I’ll summarize to at least share with everyone what I remember from it since you bothered to come back to see how I’d respond. One thing to keep in mind is, I’m not some ROI Powerpoint-making manager. I’ve filled the role, but I’m currently a Development Lead for a fortune 1000 company. I’m also not in the heart of NYC where there’s 1000s of people lined up to fill a job…we simply do what we can.
1. “use agile, try using other languages instead of only looking for people with a specific ’skill set’”
Ok, my definition of skill set implies the ability to use any language or tool necessary to get the job done. Sure, Java is a more-often used language for things in my arena, but I won’t hesitate to have my team dive into other technologies to complete a task.
2. “give the developers a WELL LIT environment with comforts, amenities, and perks”
I completely understand the need for giving good equipment and a comfortable environment. I’ve yet to be in a place where we didn’t give 21″ monitors and productive environments. I disagree with the well lit part, I prefer dim lighting with lots of desk lamps. But that’s besides the point. Being a developer myself, I mostly agree here but I don’t think we deserve red-carpet treatment anymore than other employees get.
3. “give some presentation about ROI and good time management…or something” (I don’t really remember this, it was totally off base with what I even do)
I’m not a presentation person. I can do that job, but I prefer to get into a good design session with a group of people and make something out of nothing. I’m guessing you saw a few posts in my history from the perspective of a manager or something and figured I wasn’t a technical person. This website is about things I’ve learned. What I mostly have here so far are the things most developers don’t seem to grasp while being in a development role. They’re the first things that came to mind that I’d have liked to know when first starting out.
I may as well have made a post about this, but I don’t think defending my viewpoint is something in my niche.
June 7th, 2006 at 10:02 am
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June 11th, 2006 at 10:31 pm
Interesting article. I specialize in setting up exactly such college intern teams and have had good success over the years. The “nuggets” are indeed able to perform the work of a mid-level professional. In fact, they’re usually faster and better programmers than the typical professional, though this is offset by inexperience and the need to work parttime while in school. We hire exclusively the “nuggets” in our teams, which makes a big difference. (The fact that I’m a professor of Computer Science helps considerably in doing this
) If you hire from the top 5%, you’ll find excellent results. And because we give the students more responsibility than the typical intern, they benefit too, and we are able to retain many of the best ones when they graduate.