Pros and Cons of Outsourcing New Software Needs

I work as a web designer.  Occasionally, I do some simple scripting and coding for web design, but that doesn’t qualify me to write software.  When a client needs something specific that needs more than I’m capable of, I call in the outsourcers.  Outsourcing saves me time and money.  Just like using my services saves my clients time and money, using a software developer saves me time and usually makes me money.

Be careful when choosing a software firm to do your outsourcing.  I’ve found that offshore developers are charge less per hour for their services.  Using offshore developers can reduce costs, but it can also open a Pandora’s Box. Issues, such as getting projects completed exactly in the manner specified, can occur due to language barriers.  Software development is not a simple task and adding additional complicating factors lengthens the process.  When choosing an offshore firm, be sure to check not only their portfolio and experience, but also their English skills and payment methods and options. Always look into what kind of assurances there are that you will a) own the work b) will have recourse if your project is not done on time or properly.

In my experience, using an onshore software firm increases profit.  While you are most likely going to have to pay more on the per hour basis, the number of hours it takes for projects to be completed from start to finish is less.

Whether onshore or offshore, outsourcing software development will save you money.  Many of my colleagues use offshore developers regularly.  Personally, I prefer onshore developers, but I have used a few offshore firms to successfully complete some projects.

Technology Fields for Independent Contractors

When I decided to throw myself out there as an independent IT contractor, I had big dreams of tons of clients.  Originally, I started out as a web designer.  About two days in, I decided to add “Web Developer” to my title.  As time has progressed, I have become aware of different opportunities that weren’t available to me as a mere web designer.

Depending on what degrees or certificates that you hold, your opportunities as an IT contractor will be greatly influenced.  The same can be said about what opportunities your work experience and portfolio will bring you.  Having a well-prepared portfolio is more important than having every possible degree or certificate.  Degrees and certificates show your level of schooling.  Your portfolio shows your actual abilities.  Remember to keep your portfolio current and make sure to stock it with your best work.  Also, make sure that every job you take on looks as good, if not better, than your best portfolio piece.

In today’s world of outsourcing and downsizing, corporations are turning to contractors and consultants whenever they can.  This is where your vital experience and abilities come in.  Why would you limit yourself to a specific category like I did?  Maybe because you see a large income possibility, maybe that is the only place where your talents lie, or more likely, that is the only talent you have thought about capitalizing on so far.

IT contractors are always needed in the vast world of the Internet.  Web design cannot be accurately described without breaking into multiple categories.  You can design e-commerce sites, simple single-page sites, complex content management sites, and the list could go on forever.  The best way to go in the web design/development field is to find a niche, develop a portfolio and earn a good reputation.  Having an extensive clientele gives prospective clients peace of mind and it also pulls in lots of referrals.

Graphic design is another great field to find contract work in.  Companies always need graphics for business cards, letter head or their annual newsletter and employing a full-time graphic artist doesn’t always make financial sense.  That is where you, the contractor, come into play.  You cost less than yearly in-house graphic artists and you always deliver on time.  Not to mention the fact that graphic work is great to bill out to customers.  You can make graphics as detailed as possible or you can make simple, less detailed, less expensive graphics to fit a tight budget.

Programming and coding are great way for contract work.  When companies or individuals find themselves needing a specific application, be it for web or non-web use, hiring a contractor will most likely save them money.  Unless you run a software development company, having coders on staff just doesn’t make sense.

Pros and Cons of Being an Independent Contractor

Being your own boss is great.  We can all make long lists of the benefits, especially before we get into business for ourselves.  What are the risks?  What do I need to be aware of before I get in too deep?  These are the questions we should be asking ourselves.  Often we get distracted by those lists of benefits that are just too great to even stop and think about the negatives.

It is great to be able to start the day whenever I want or put in the hours I feel like.  The reality of is that the day is never guaranteed to end at five and I cannot think of the last time I did not put in fifty or sixty hours in a week.  Vacations when I want them are great but I’m on my computer at least three times a day to make sure I haven’t missed anything from clients or prospective clients.

Sure you can make more money on a job to job basis as an independent contractor.  In the long run you are going to have to pay higher taxes and it can get confusing in a hurry when you have to figure out your tax return with a hundred or so clients on a yearly basis.

Maybe that company health plan will start looking better when you are footing the entire bill and still not receiving the coverage you should be.  Finding good health insurance is difficult.  Finding good health insurance that is willing to take on the liability of just one person or just one family is next to impossible without spending an arm and a leg to get it.

If the extra money you are making on a per job basis hasn’t been eaten up by higher taxes or more expensive health care it is almost assuredly gone after you factor in retirement planning.  When you are on your own, there is no employer supported retirement package, unless you count your own payments twice.

Beside your own health insurance, you have to also pick-up the tab on liability insurance.  I think most independent contractors go with little or no liability coverage.  Depending on your specific technology field, at times it is a necessity.

One of the worst parts of being an independent contractor is the risk of not actually collecting payment on a job.  The first time that ever happened to me was for a little $500 web site.  I was so floored that someone wouldn’t actually pay I hadn’t even thought of it as a possibility.  Since then I have wised up and taken steps and measures to make sure I collect my entire fee on all of my projects.  With the exception of being stiffed once, I have always been 100% on my collection rate.  Nevertheless, nonpayment is always a real possibility.

With all of these and many more potential pitfalls facing private contractors, one has to really question why anyone would choose that career.  I guess being able to set my own hours and not having a boss is still worth it for me.  The question is, is it worth it to you?

Advice for Adults Going Back to College

If you were late to the party or are a convert from a previous career there is still hope of obtaining a new college degree. There are countless colleges and universities that offer Information Technology degrees as well as specialized training. The keys are finding one in your area and in your price range that offers classes you both want and need. Once you’ve decided what you want to study and your budget is in place, you are ready to find the school in your area that meets your criteria.

The Internet is a great resource for exploring and investigating colleges and universities and Universities.com is an excellent catalogue of colleges and universities throughout the United States. The site lists desired majors and fields of study while helping to show you where you can achieve your goals. Although Universities.com specializes in distance learning and online degrees, they still have a solid base of information on colleges and universities from across the country.

US News and World Report releases a yearly ranking of colleges and universities. Their rankings help to give prospective students a great barometer. Their system allows you to search for the best college in your proposed field of study. You get break downs on the last four years tuition and fees for your potential alma mater. In short, US News and World Report is a must have resource for any prospective college student.

Once you have a school picked out that is in your desired geographic region, meets your price range and has the classes or degree that interests you, the ACCSCT is a great asset to ensure your school is living up to its claims. The ACCSCT is a non-governmental, non-profit body that is recognized by the United States Department of Education as their independent accrediting service. The ACCSCT includes a section for prospective students from which, students can conduct further research into their desired schools.

I have found that all colleges and universities are more than willing to give you as much free information about their programs as possible. Make sure that you utilize this resource as well. Don’t forget that you are essentially their potential customer and that prospective schools should meet your needs. With your education at stake, do not settle for anything less than what you personally require. Ask questions about financial aid, ask to meet your future professors, discover the history of the institution and inquire about the long-term viability of the school. The last thing you want is to pay your hard earned money out to a school that isn’t going to be around five years after your graduation.