Case 3: If I pay $50 per hour, My project would be successful!

Welcome to Breaking the Myth Series.

Last post of mine was related to cheapest pricing available which makes you feel you are saving too much, when you actually end of paying much more per hour for a substandard work which you never wanted in the first place. This post would be exactly the opposite. When you see a high pricing $50 per hour – you may tell yourself, well these guys must know something more than the rest, because in this market too they are charging 50 USD an hour which is at par with US prices. So I am safe.

A little unsure you would actually take the pain in requesting few other documentation but by now you would have already made up your mind that you are going to choose this company. Why? Because your project is dear to you and you have a one time thing to be done and you are in need of good people who can nurture your idea into conception. In a way, you feel you cared for your idea when you paid more to get it done. And well, you may think that the organisation is old and stable and has lots of people who have been working on it for years, so it has to be good! WRONG!

The bigger an organisation, the bigger are its drawbacks but not necessarily. There is quite a lot of difference between being big and charging higher versus being medium and charging medium.  Let me explain – Firstly when the organisations are big, you would be talking to their Business Managers, and then project managers. Who would be working on your project, How long have they been working, Which customer appreciated them, What was the project which was appreciated? No idea. You are happy with seeing the total number of certified individuals, total number of happy clients, total number of customer testimonials and total number of projects executed. You feel happy and glad that you did a good bargain and got the correct big sized company to work for you. Reality is the person who got the certification would not be the one working on your project! The person who got the testimonial from the client may have already quit. The customer who had given the testimonial might be doing the second phase of his development with some other company!! So, at the end of the day, whatever you verified to justify yourself that the $50 rate is good because they are a big company turns out to be half true – company had employees and customers in the past and they had done a project. They may not have the customer and the people with them anymore, then why on earth will you give them your dearest project and that too at a high rate!!

Then I know your question – Sam, If its bad to choose the $5 guy and the $50 guy, who do I choose? And why do the big companies charge so much?

My response is simple to answer to difficult to implement. Big companies charge you more per developer because of the overhead they cant charge you directly. Who else is going to pay the Project Manager, Senior Project Manager, General Project Manager, Delivery manager, Country Head, Hundreds of Sales people, VPs and CEO? A fraction of everything comes down to you.

Choose the company which can deliver. Forget about the price what they are charging. Check their speed of work and check their work quality. Forget references, forget past work. Get to their current work. Ask them for a Risk Free Trial. They need a chance and you need an opportunity where your project will be cared for and will be given attention. They would not have so many layers in the hierarchy and so even if they include the overhead costs, not all their developers would be certified (Big companies cant also claim that all their developers are certified) but thats fine – they would have the passion. Think yourself how much you remember what you learnt at Grad school. Certifications are fine but what you should learn to do is taking a trial of their services. What do you have to lose?

Please feel free to email me if you have any queries.


One thought on “Case 3: If I pay $50 per hour, My project would be successful!

  1. Well, I would not say am a victim but still i have had offers in the past from indian companies who charged similar or higher rates without the proper manpower.. Never tried them..

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