Still Outsourcing Local Talent?

I attended the Phoenix Mobile Festival recently, an annual event for people who develop apps and technologies for mobile devices like smartphones, tablets, and wearable technology like smart watches. While I’m not a developer, I like to keep up on mobile developments. Since this was a local event, I was very surprised to hear a speaker praising outsourcing, a scourge that’s hurting Arizona’s efforts to become a tech leader rivaling Silicone Valley.

Banner for the Phoenix Mobile Festival

Is a technical conference the place to talk about the joys of outsourcing?

Is This the Time to Advise Talent Outsourcing?

I missed the first half of Fred von Graf’s session on “Secrets to Building a Million-Dollar Business.” I was learning about complications and time travel.

Normally, I welcome business development talks because Lord knows I can use advice on building this business, getting new (paying) clients, and networking. The title of von Graf’s session struck me as silly and cheap, but after checking out an Android development session, I figured I’d make room for a real developer and went into the Million Dollar session.

There I sat, horrified, as this person advised, over and over, to look overseas for tech teams.

I didn’t think people were still hot on outsourcing. I had read that a lot of companies have pulled out and are hiring US workers, whose training and, I suspect culture, match theirs more closely. In fact, I’ve read about companies in India that are outsourcing for US talent!

It came up from a question about where to find freelance tech teams. To get a really good idea of who works well on your project, von Graf advised hiring three teams to do the same project and pick the one that did it best.

How can I pay for that? another person asked.

Easy. Hire teams from overseas. “Their price points are much more competitive then you’ll find in the US.”

von Graf then spent several minutes extolling the virtues of overseas teams. He went on to say that he tells all his clients to hire overseas, where the work can get done for so much less. He groused about his one single client who refuses to hire foreign labor. “He’s spending so much more than he should,” he said, shaking his head.

I was livid, practically shaking.

Don’t Outsource Arizonans!

It made no sense to me. Here he is, in Arizona—a state that desperately needs jobs and encourages people to get educated for tech jobs—telling businesses in Arizona to outsource these very jobs.

von Graf isn’t unfamiliar with Arizona. He’s active in Scottsdale’s SkySong tech community. He’s been featured by GrowSouthwest, a company that nurtures entrepreneurs and independent businesses “everywhere,” but does that mean outside the Southwest, or the entire US?

I was a little relieved to hear grumbling about outsourced jobs from the audience. No one, though, challenged the idea.

Infusionsoft, which hosted the festival, is well-known in Arizona’s tech sector. It won the Pioneer Award from the Governor’s Celebration of Innovation. “This recognition is further validation of the impact we’re having on the global small-business community and the tech sector here in Arizona,” Infusionsoft’s CTO told the Phoenix Business Journal.

After the session, I discussed what I heard with two vendors at the site. One mentioned he had used overseas vendors from Poland and India. They didn’t work out so well. “We ended up redoing a lot of the work. They just couldn’t understand what we wanted.”

The owners of another business, both from India, was also bothered by outsourcing. “We only hire people in the US,” they told me. True, their clients were mostly state governments, but they also showcased a growing number of US businesses.


I’m sure von Graf is a good guy. He encouraged people to contact him after his session. He’s eager to share what he knows and to mentor small businesses in the tech sector.

But shouldn’t that also mean keeping potential jobs in Arizona? Does every business have to make a million bucks? And will this only happen by outsourcing jobs elsewhere?

 

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About

Ruth Ann Monti is a writer for all things webby. She lives in sunny Scottsdale, AZ, with her son and a mixed-up Chihuahua.

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