Summary:
After 1 year and $3000 spend on a project Mr. Rob today has nothing with him. The project is not completed and the individual he hired for his project cannot be traced.
So, what went wrong here? And why sometimes the decision to go for the cheaper price is sometimes wrong.

Outsourcing Disasters
A very strange conversation took place today as I went online on Skype, so strange, in fact, that it compelled me to write this post at 1 am.
So as I log in, I get a very racist message from a man—let’s call him Mr. Rob—about how Indians are not good service providers, and most of them leave projects unfinished or provide low quality work. It was very surprising, and I was definitely taken aback by this pop-up message from nowhere. Without jumping to any conclusions or retaliating to this not-so-nice message, I tried to search for previous communication between Mr. Rob and any member of Miracle Studios. As I found out, Mr. Rob had approached our company about a year back for a project, but did not end up giving it to us as—according to Mr. Rob—we were expensive.
This sudden pop-up message a year after the proposed project left me a bit confused, so I inquired further to see if Mr. Rob had a specific issue with our company and to re-confirm whether he was actually a client of ours. The answer was no.
What had happened was that Mr. Rob, after getting in touch with us, decided to give the project to another firm/individual who had quoted a smaller amount for the project. As per normal human tendency, we all tend to jump the gun and think: “Ahh…discount…why should I pay more, when I can get the same thing for cheap?” Mr. Rob knew that the person he has awarded his project to was a freelancer. I believe his mindset was that if he approached the company that this freelancer actually worked for, the same project would certainly cost more. This would be true even if the same particular designer ended up doing it. A better option would seem to be just taking the company out of the picture and dealing directly with the end person—the freelancer. If you look at this from one perspective, it makes sense. Unfortunately, it is not as straightforward as it sounds.
After 1 year and $3000 spend on a project Mr. Rob today has nothing with him. The project is not completed and the individual he hired for his project cannot be traced.
So, what went wrong here? And why sometimes the decision to go for the cheaper price is sometimes wrong.
In India, it is often the case that freelancers are not actually work-from-home individuals who can spend the majority of their time on a particular service. In 95% of the cases—if not more—the same person has a full time job from 9-5, and only spends the remaining part of the day doing this additional freelance work for some extra cash. This is fair enough; who doesn’t need extra cash these days! Since there are no major overheads like employee salaries, welfare, office expenses, transportation charges, electricity, rents and the million other small things that a company has to take care of, freelancers can obviously charge 50-75% less than any company. Freelancers therefore charge far less, and most clients get blinded by this too-good-to-be-true offer and forget about the fact that the person they have just hired actually has no more than 2 hours a day to spend on their project.
Another consideration is the fact that when an individual does freelancing in the same line of work as his company, he becomes a direct competitor to his own employer. This itself is ethically wrong, if not illegal. If this person is dishonest towards their main source of income, where is the guarantee that they be honest towards their secondary source of income?
Now don’t get me wrong here. I am not against freelancers, and there are probably plenty of good freelancers who deliver their services with full honesty and dedication. However, in today’s cutthroat, competitive world, those gems are hard to find. The irony is that even when you do find them, they usually don’t get the projects, as their fees are higher than the part time freelancers.
Let me make one thing very clear. There are many times when companies are unable to satisfy each and every one of their clients. Heck, huge corporations like Google, Microsoft and Apple are frequently unable to make their customers happy. There is always someone talking about Google’s ad policies, and of course which of us haven’t cursed Microsoft whenever we see the blue screen of death on our computers without even the chance to press CTR+ALT+DEL? However, there is a very simple difference between companies and individuals: companies care! What’s more, in worst-case scenarios, such as bad feedback, they try to compensate.
Think about it yourself, if you are a customer of Microsoft and you call customer services, they spend hours on the phone assisting you and helping you to load Windows. Trust me, I have seen this happen. If one of their CDs doesn’t work, they usually send you a new CD along with a complementary anti-virus to show you that they care and to try to make up.
Ok, maybe I just went too far with the Microsoft thing there… But even in small-sized companies, the goal is always to make sure that when a client is not happy we try our level best to end everything on a good note, or better yet, retain him or her as our client.
Reputation is a company’s number one priority; this is what every company tries to achieve. And with one bad review, years of hard work can be destroyed in seconds. If for no other reason than this, companies must care about their customers. A freelancer, in comparison, books a domain for $9.99, sets up a template for $29, and there! With that much investment they are ready and equipped to take orders on the internet and sell their services by offering low prices.
Ironically, I am sure someone sitting in US thinks the same way about Indian companies. But to set up a company here or anywhere else in the world takes the same amount of effort. Things are not cheap for us anywhere, and at the end of the day everything boils down to the same money, be it in New York or New Delhi. In case you didn’t know prices, the prices of office space in the smallest places in Delhi are higher than those of a lavish office on Wall Street. Even in India, and especially in the IT industry, companies face the same issues with freelancers and lose a lot of work due to the price dilemma.
This post has gone more than a 1000 words and I’d better end it now.
To summarize: what happened with Mr. Rob was unfortunate. In an effort to save a few dollars Mr. Rob ended up losing a lot. From a service provider’s point of view, I would like to point out that as a buyer, looking at the bigger picture is very important. Even though it might be a little bit expensive, it can be worth the investment in more ways than you realize.
Regards,
Raj
Miracle Studios is a premium web design and development company based in India.