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What Do You Do When Outsourcing Goes Bad?

Posted by Cliff on from the who-you-gonna-call dept.

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."

6 of 751 comments (clear)

  1. Contract? by kevin_conaway · · Score: 1, Redundant

    I would assume that you established a contract before starting work with this agency. If they are now in violation of that contract, you have grounds to sue them, correct?

  2. Contract? by Short+Circuit · · Score: 0, Redundant

    Did they violate the terms of their contract? If so, you might be able to sue.

    --
    tasks(723) drafts(105) languages(484) examples(29106)
  3. How about... by Anita+Coney · · Score: 1, Redundant

    ... next time actually TESTING the product before giving the final payment?! It's a thought.

    --
    If someone says he and his monkey have nothing to hide, they almost certainly do.
  4. Sillyness. by Saeed+al-Sahaf · · Score: 1, Redundant
    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.'

    Why did you pay them before you tested the package? Sillyness.

    --
    "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
  5. Unable to Modify Deliverable by theBraindonor · · Score: 0, Redundant

    It sounds like you've been ripped off in more than one way.

    First, you aparently don't own the code that was developed. Even if someone does give you the source code, you need to make sure that you are able to modify it as you please. Quite a few contractors have pulled this over the years. They will deliver a product cheaply, then charge much higher rates for upgrades and fixes. Beware of a bargain price on software you won't own.

    Second, you issued payment without verifying the completeness of the deliverable. If there are problems with the install script itself, how many other problems will you find once it is installed correctly? Just because a product has been delivered, does not mean that the contract has been fulfilled. Once the money is out the door, it almost never comes back. When a contract goes bad, would you rather pay for the product as well as legal fees to get that money back? Or would you rather pay the legal fees instead?

  6. It depends by ThousandStars · · Score: 0, Redundant
    That depends on how you paid and where the company is located. If they won't send you the source, you may be screwed. If you paid by check, you can try to stop payment, and if you paid by credit card you can reject the charge. If it's too late for either of those or if you paid by some other means, you might be out of luck. If the other party is in America you can try suing them, but that may or may not be worth the time and effort and you'll need a lawyer. If that person isn't in America, you probably won't be able to sue and collect.

    The good news about being out of country is that the price is inexpensive. The bad news is that, if things go sour, you have almost no recourse or leverage.

    Finally, next time I can only recommend you take this guy's advice. I realize that may not inspire much comfort now.