'Pay-per-hour outsourcing rates are a distraction'

'Pay-per-hour outsourcing rates are a distraction'
Will Freeman

By Will Freeman

September 30th 2009 at 12:00PM

Time based payment model must change, suggests Beriahâ??s Kevin Hassall

Speaking in a feature written especially for Develop's outsourcing special, Beriah’s Kevin Hassall has criticised the practice of vendors charging rates related directly to man hours.

"These are a distraction: you don’t want to pay for time, you want to pay for results. A coding project recently crossed my desk where a UK, an Eastern European and an Asian team were quoting for some tools and tech work," stated Hassall.

"The most expensive option turned out to be the Asian team, despite having the lowest man month cost. They wanted three times as long to do the work as either of the other teams. It’s the cost of completed deliverables that matters, not some notional man-month rate."

To read the full feature, in which Hassall addresses the relationship between outsourcing, cost-saving, and payment models, click here.