Why I outsourced to Michigan instead of India

Why I outsourced to Michigan instead of India 930 503 C-Suite Network

For one CTO, offshoring software development seemed like a good idea. Six years ago, the CTO joined a fintech company that had a history of sending coding projects to India, China, Vietnam, and the Ukraine. Like so many U.S. corporations, this fintech company sent work overseas to take advantage of low-cost labor. However, after one year on the job, the CTO changed course and began outsourcing to Michigan. “We’ve shifted 90 percent of our outsourced work to Michigan over the past five years,” he said. “In my mind, it’s not about dollars and cents, but about value.”

The CTO requested anonymity because his employer is a publicly traded fintech company whose customers include Paypal, Google, United Airlines, and Chase, among others. VentureBeat spoke with him after publishing “Trump bump for tech jobs outsourced to the Midwest.” The CTO’s company is a client of Nexient, which provides outsourced agile development teams in Michigan and Indiana to large corporations and mid-sized businesses across America. The CTO told us about his decision to send development projects to Michigan instead of to India.

He says that shortly after taking on his new role he discovered that work outsourced to Indian firms fell short of the exacting standards he sought. “It was the typical tale of outsourcing from a small company that did not go well,” he said, citing delays, lower than needed quality, and a high degree of management oversight. “Even with the significant cost benefit, we couldn’t get the productivity.”

Crimson Tide and agile development

In 2012, the CTO was introduced to Nexient, which was then run by founder Neeraj Gupta, who the…