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    ng about forfeits, if they don’t meet the deadline. Their answer was that they actually could agree but cutting two third of planned functionality. Their
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    These days subcontracting, especially in IT, became very common. While I don’t say subcontracting is always a bad thing, it can’t be negated that sometimes it fails. Why is it so? I have several examples to share.

    Credibility

    We outsourced development of a piece of our proprietary application framework. Guys who took the project were considered as gurus but there were some problems with meeting deadlines by them earlier. A risk which can be managed. We made a negotiation session, agreed on functionality range, price and deadlines. Then I stated that we want to add statement saying about forfeits, if they don’t meet the deadline. Their answer was that they actually could agree but cutting two third of planned functionality. Their

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    es it fails. Why is it so? I have several examples to share.

    Credibility

    We outsourced development of a piece of our proprietary application framework. Guys who took the project were considered as gurus but there were some problems with meeting deadlines by them earlier. A risk which can be managed. We made a negotiation session, agreed on functionality range, price and deadlines. Then I stated that we want to add statement saying about forfeits, if they don’t meet the deadline. Their answer was that they actually could agree but cutting two third of planned functionality. Their

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    ary application framework. Guys who took the project were considered as gurus but there were some problems with meeting deadlines by them earlier. A risk which can be managed. We made a negotiation session, agreed on functionality range, price and deadlines. Then I stated that we want to add statement saying about forfeits, if they don’t meet the deadline. Their answer was that they actually could agree but cutting two third of planned functionality. Their
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    which can be managed. We made a negotiation session, agreed on functionality range, price and deadlines. Then I stated that we want to add statement saying about forfeits, if they don’t meet the deadline. Their answer was that they actually could agree but cutting two third of planned functionality. Their
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    ng about forfeits, if they don’t meet the deadline. Their answer was that they actually could agree but cutting two third of planned functionality. Their credibility went out and hasn’t ever been seen after that.

    Pricing

    Another company developed some software for us. We wanted to add internationalization and the easiest way to do that was to outsource the work to the authors. They should exactly know what had to be done -- hey, they were the authors. Our team didn’t really have a time to take over the code then so they had really strong negotiation position, although they didn’t know about that. However, first price they gave was reasonable. When they doubled it I didn’t considered it as fair any more, but still wanted to give t

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