One of our prospects plans on hiring a firm in India for link development services, where they only pay $15 per hour. In this recession, they could find local talent on Craig’s List for nearly the same price without the additional complexity. New college grads knock on Formic’s door continually, and they’d gladly work for $15 per hour. Do the developers overseas know the right social media sites to post on? Our local Gen-Y workers surly know where to go, more so than someone in Bangalore.
Our sister company Anvil found an American competitor who plagiarized their SEO white paper, word for word. When contacted about the fraud, they blamed inexpensive overseas contractors who built their website for pennies on the dollar. Trust me, saving a couple thousand in content development is not worth having angry entrepreneurs exploring copyright infringement lawsuits.
My favorite off-shoring story is Visual Compass, a significant Seattle-based software company that imploded in 2002. Most of the development was off-shored to India where programmers wrote Cold Fusion code. Half way through the project, my friend Jason and a crew of Seattle programmers were hired to fix signifcant user interface mistakes and buggy code. The software release was significantly delayed, helping doom the company. Jason and his crew could have delivered on time without the extra outsourcing expense, offering Visual Compass a chance of survival in the post dot-com world. At minimum, the inventors could have saved money when the doors were closed.