15 June 2007

Offshoring and localization projects, Part IV

"We specialize in all cars, domestic and foreign."
-Sign over auto repair shop

What kind of specialization is that? Specializing in both foreign and domestic cars means, of course, that you don't really specialize in anything. Unfortunately, that also applies most of the time to offshore software development companies who have discovered that their technology clients need, among dozens of other things, localization.

I was in a meeting with a prospect last week when this came up. A project manager who has already got the religion of offshoring was pushing to award a localization project to an offshore development "partner" in China. His antagonist, a localization purist, was arguing against the award because of the partner's skimpy localization credentials. I was a fly on the wall, hoping to manage the project whichever way it went. Their respective arguments went as follows:

"We need to work with more partners in China because we can get more done for less money. I'm not worried about their lack of localization expertise, because you can put quality controls in place to make sure they deliver a good product. Every smart technology company is growing in this direction, and we need to get partner relationships in place as soon as possible."

"That country has let malamine into the pet food manufacturing process. It has put an antifreeze component into toothpaste. Its food and drug inspectors work under a conflict of interest between big pharma and the city governments that invest in big pharma. Does that inspire you with confidence?"

"Those are low-tech examples where quality problems are hard to identify. This is software, and we can keep problems like those from ruining the project. They may not get it right the first time on their own, but they're extremely adaptable and eager to keep the business no matter what. It's a relationship we should invest in."

"They're telling the world that they specialize in all cars, foreign and domestic. Look at their Web site. They're software developers, they run a data center, they write embedded software, they do datawarehousing, they run call centers and they do data entry. What else? Silk-screen t-shirts? They say they have the capability to do four dozen languages, but how many have they really done? And have they done them in our industry?"

Don't misunderstand and don't underestimate: These companies will get it right sooner or later, and it will take them less time than it took today's prominent, traditional language service providers (LSPs). They are clever, nimble and entrepreneurial enough to focus on landing the business first and then partnering with other people to figure out how to do the work second. And who could blame them? It's a simple matter of world-flattening progress.

Are you seeing these offshore companies in your projects? What do you think of the movement towards them?

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