outsourcing for startups with getviable
TRANSCRIPT
OUTSOURCING FOR STARTUPS
getviable.comangel.co/getviable
Saturday, 23 March 13
INTRODUCTION
GetViable is a social collaboration platform that helps entrepreneurs develop their ideas into viable startups.
‣ Successful startup pedigree‣ Professional Services & Outsourcing expert
‣ Global Experience in offshoring services and scaling business to $100M
‣ Passion to impact Entrepreneurship globally
LESLIE BARRYCEO
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AGENDA
‣Why Outsource?‣What can I Outsource to grow my Startup?‣Finding the right partners‣Managing the offshore Team to great results‣What happens after delivery? Support Options‣Resources and Tools‣Q and A
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OUTSOURCING FOR STARTUPS
OUTSOURCINGDEFINED
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OUTSOURCING DEFINED
Outsourcing is “highly-skilled Services Augmentation”
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FreelancingDefined SkillHourly RateOffshoreShort-term Skill AugmentationRanges from Data Entry to Coding
Call CentersTelcosLow SkilledHigh VolumeLow Quality
OffshoringDefined ScopeFixed PriceProject BasedOffshoreTeam Based
ContestsPredefined Price for multiple options.
Crowd-sourcing
Contest modelCreates Options
CrowdfundingPre-orders for your startup product
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OUTSOURCING DEFINED
25 years ago, IT outsourcing didn't exist, it is now a +$100Bn industry (Source: Information Services Group; TPI)
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offshore = low skill level Unmotivated
offshore = abuse Low price = low quality
Only India / Russia Annoying after hours calls
Outsource needs high overhead Telco Call center
Low skilled labour Loss of IP
Outsourcing Myths
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OUTSOURCING FOR STARTUPS
STARTUP OUTSOURCE OPPORTUNITIES
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OUTSOURCING DEFINED
Why Outsource?8
High Quality, affordable
skills
Flexibility
Scale Fast Focus
Access Talent and
Ideas
Reduce Costs
Startup"A startup is an organization formed to search for a repeatable and scalable business model."
Steve Blank
Menial Tasks
Test Ideas
Reduce time to market
• Ask yourself “what skill is not core to my startup?” - eg; data capture, mailing leads
• Commodity or Talent?
• Be specific.
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STARTUP OPPORTUNITIES
WHAT TO OUTSOURCE?9
Stage Outsource Crowdsource Freelance
Clarify Idea Naming, Funding
Identify Customers & Validate
SEO Setup, Landing Page Setup, Mailchimp Setup, Copy for launch Page
Design Logo Design, User Interface Design Wireframe Design
BuildFunctional Specifications, Build Website,
Build Mobile App Data Capture, Project Management
Scale Monthly Support, Dedicated Development Team
Providers Elance, ODesk, FreelancerHelpme.name, Kickstarter, 99Designs, DesignCrowd,
CrowdspringElance, ODesk, Freelancer
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OUTSOURCING FOR STARTUPS
PARTNER SELECTION
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PARTNER SELECTION 11
HIRING• Filtering question is gold!
• Aim for the best people or team.
• Choose wisely - interview with the same diligence as you would a local.
• Research your pricing - oDesk, eLance, Freelancer, etc
• Test them with a small, sample task.
• Test with a low impact “work package”
• Start with hourly, move to Fixed.
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PARTNER SELECTION 12
SCREENING•Post your job ad and ensure the last line of the ad says that applicants should use the word XXX as their first word in their response. This weeds out generic responses. Delete ALL responses without this word without reading them.•Put the ad up for 5 days and specify that applicants must have at least the highest level English. 4.5+•Ignore how much applicants cost and look only at the last two reviews for their star rating.•Set up a Google Docs spreadsheet so that you can share information easily. •Ask them to take a test relating to your project to check quality, accuracy, language use, etc. . Example: capture 10 results from a targeted website into Google Docs.
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PARTNER SELECTION 13
SCREENING•Review these for accuracy. •Decline the applicants who do not meet your criteria.•If paying hourly, discuss what output or deliverables you can expect per hour so your expectations are aligned.•Pick some responses and test this. See how accurate and fast they are (there may be a trade-off).•Only give the shortlist your Skype details at this point as otherwise Skype will become flooded with connection requests that are hard to shake and an unnecessary overhead.•It is best to work 1:1, as you can build a relationship with the freelancer. Check that the person you interview is the person that is actually delivering the work.•Hire them.
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PARTNER SELECTION 14
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SUMMARY KEY REQUIREMENTS
FINDING TALENT
Trusted ratings
Costs + Fee
Escrow
Payment gateways in multiple countries
Milestone Management
Contract Terms
File Management
Collaboration
Dispute Resolution
Portfolio View
In our experience, eLance is a great platform to manage fixed price project work.
ELANCE15
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SUMMARY KEY REQUIREMENTS
FINDING TALENT
Trusted ratings
Costs + Fee
Escrow
Payment gateways in multiple countries
Work View - watch the work
Contract Terms
File Management
Collaboration
Dispute Resolution
Portfolio View
In our experience, oDesk strength lies with hiring skilled staff augmentation. Their tools and workflow are more suited towards resource management.
ODESK16
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SUMMARY KEY REQUIREMENTS
CASE STUDY
ELANCE WALKTHRU17
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CONTRACT OPTIONS
Focus on OUTCOMES, with milestone payments based on demonstrated deliverables
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HourlyGood:Cheap, Flexible
Bad:
Low commitment
Weekly
Fixed Price Monthly Support
Fixed Hour Support
Per FeatureGood:Cheap, Flexible
Bad:
Low commitment
Good:Fixed price, clear outcomes
Bad:High Management, Debating
Good:Team, Flexible, Scale
Bad:Use it or lose it
Good:Team, Flexible, Scale
Bad:Use it or lose it
Good:Team, Redundancy
Bad:Management, Trust
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OUTSOURCING FOR STARTUPS
MANAGING THE TEAM
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GETTING GREAT RESULTS 20
MANAGING THE TEAM
• Manage them as part of your team. Same courtesy, respect, patience, diligence, guidance.
• Structure smart milestones based on outcomes. 15%, ........, 30%
• Build a relationship. They are not ‘resources’
• Keep the communication flowing. Regular, scheduled.
• Fire fast. Cut your losses and move on.
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OUTSOURCING FOR STARTUPS
GETTING RESULTS21
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GETTING RESULTS
CLEAR REQUIREMENTS•Define User Stories•Discuss and agree•Weekly deliverables•Confirm against user stories•Test
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GETTING RESULTS
ESSENTIAL TOOLS23
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GETTING RESULTS
NOW WHAT?
•Hourly rate - ad hoc, availability risk•Weekly rate - risk of losing provider•Fixed block of hours for team - has redundancy, reliable•Full offshore team - committed, requires overhead from you•Offshore employees
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GETTING RESULTS
RESOURCES & TOOLS•Read: Eric Ries, The Lean Startup
•GetViable.com - Idea to Minimum Viable Product•StartupPlays - Startup Video Guides•eLance - Outsource Marketplace for Skilled Resources•oDesk - Outsource Marketplace for Skilled Resources•Freelancer.com - Outsource Marketplace for Skilled Resources
•TeamworkPM, GitHub, PivotalTracker
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Q&AOUTSOURCING FOR STARTUPS 26
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Contact
www.getviable.com
angel.co/getviable
@getviable
Dougal Edwards, Founder, COOLeslie Barry, Founder, CEO
Saturday, 23 March 13