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What Do You Do When Outsourcing Goes Bad?
Xphox wonders: "Recently we have been referred to an outsourcing company to finish customization on a script that the author had no time to complete. Everything was going fine until recently. At what point do you consider they may have just ripped you off, and how do you know when to file complaints and withhold payment?"
"I have been working with what I thought was a reputable outsourcing company, referred to me by the author of the software package. We agreed that payment would be made once everything was completed. After a few missed deadlines, the project finally seemed to be finished. The only thing left was a small bug fix, and an install script which needed to be completed. As agreed, he delivered the install script, and we made the final payment. Upon testing the new install script we noticed things did not work as intended, and all attempts to contact the outsourcing company has resulted in the following answer:
'My guys are still working on it.'My fear is that if I don't act now, I will not be able to recover any funds, and will be stuck with a product that is useless. It has been 9 days since I've received an email from them, and I'm starting to think I've just been taken advantage of. Since the script is protected with Source Guardian, I am unable to finish the modifications myself."
Name them, especially here, and let them know you've done it. That will teach them a lesson.
So you paid without testing the final product? I suspect all you can do now is sue. We've received "finished and tested" outsourced projects before that didn't even compile. You have to be very careful out these things.
Disconnect your television. Do your own research. Draw your own conclusions. They're probably lying. Don't be a sheep.
Software Engineer, you get more than just a coder, you get IQ, you get somebody who understands the low and high level testing that needs to be done, you get somebody who can help you ask the right questions, you get somebody who can make sure the code compiles, that makes sure you get the code, that can rewrite or the crap code you already have, somebody that can save your ass, that is why we cost so much...
Onward to the Aether Sphere!
Not all contracts for s/w development transfer source code and the related IP. Some contracts will transfer source for use internally only for maintenance purposes, other contracts will transfer it for full use (full copyright transfer, etc.). But it is not uncommon to have a contract where the contractor retains some rights to the IP (in effect licensing the code to the contracting company).
Don't assume all contracts are the same.
"Content's a bitch."
A lot of these comments have whizzed by, but you need to take a page from OTHER engineering on construction fields when you pick a company to outsource to.
1) What is their experience (how many years they been around) and reputation (do you have references)?
2) What is your access to the work and resources?
3) Can you evaluate their work independantly?
4) What contingencies does the contract provide you if work isn't done or doesn't meet your needs?
5) What payment schedule is provided to you?
6) Who can you talk to when you have business as opposed to technical issues (accountability)?
7) What are the deliverables, and who owns them?
ANYONE that takes cash upfront to do work I'd be wary of. The cash is your ONLY bargaining chip unless you are willing to go to court.
If you pay someone to develop something for you, YOU own the code.
You should have secure and free access to anything developed for you, and that includes the right to walk into their offices (homes) and demand materials. You have, after all, paid for it.
In big outsource projects (fixed cost), companies often hold back payment 40-40-20. That means a cost is agreed to, 40 percent is paid up front for the resources, 40 percent during the estimated duration, and 20 percent for completion.
In smaller ones, that are usually time and materials, unless you know the developer/shop is reputable, it is best to work ok similar principles - that is give a retainer to start work (if they accept money to start they are legally bound), and after you figure out the hourly rate - you withhold some portion for completion. The alternative is NOT to pay biweekly or monthly (based on hours), but to pay by function points. That is, they can bill you when they provide you with a deliverable.
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