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<channel>
	<title>Elena Silenok</title>
	<atom:link href="http://www.silenok.com/feed" rel="self" type="application/rss+xml" />
	<link>http://www.silenok.com</link>
	<description>tech, fashion, augmented reality, and everything in between</description>
	<lastBuildDate>Fri, 24 Feb 2012 19:58:46 +0000</lastBuildDate>
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		<title>How the Internet is Changing the Fashion Industry</title>
		<link>http://www.silenok.com/posts/how-the-internet-is-changing-the-fashion-industry</link>
		<comments>http://www.silenok.com/posts/how-the-internet-is-changing-the-fashion-industry#comments</comments>
		<pubDate>Fri, 24 Feb 2012 19:58:12 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.silenok.com/?p=208</guid>
		<description><![CDATA[&#160; I was one of the keynote speakers at the Web 2.0 conference in New York in October, 2011. Here&#8217;s a transcript of my talk on how the Internet is changing the fashion industry and the transition of offline behaviors to online. &#160; &#160; Retail is a huge industry. According to the US Census Bureau, [...]]]></description>
			<content:encoded><![CDATA[<p>&nbsp;<br />
I was one of the keynote speakers at the <a href="http://www.web2expo.com/webexny2011" target="_blank">Web 2.0 conference</a> in New York in October, 2011. Here&#8217;s a transcript of my talk on how the Internet is changing the fashion industry and the transition of offline behaviors to online.<br />
&nbsp;<br />
<iframe width="640" height="480" src="http://www.youtube.com/embed/zSZKGZ5uRrI" frameborder="0" allowfullscreen></iframe><br />
&nbsp;<br />
Retail is a huge industry. According to the <a href="http://www.census.gov/" target="_blank">US Census Bureau</a>, just in the US, retail spending (excluding food and automotive) amounted to $3.1 trillion in 2010, of which almost 80% was done by women.<br />
&nbsp;<br />
Morever, online shopping is one of the fastest growing sectors, with the average growth of 19% a year for the last few years even despite the recession.<br />
&nbsp;<br />
Fashion has been a bit slow to get disrupted by the Internet, in contrast to music or news industries. However, that is quickly changing.<br />
&nbsp;<br />
Many consumers feel more confident about online shopping, with recent data from the Wall Street Journal suggesting that an overwhelming majority (over 90%) prefers online to offline sources.<br />
&nbsp;<br />
Perhaps the most interesting observation about fashion and the Internet is that we are not seeing entirely new consumer behaviors. Rather, it is the transition of offline behaviors to online that uses the revolutionary powers of the Internet, and the innovative companies that are enabling that transition.<br />
&nbsp;<br />
Most of you have probably heard of <a href="http://www.gilt.com" target="_blank">Gilt Groupe</a> &#8211; a high-end online retailer that sells designer brands at a steep discount. It’s hugely popular because it taps into everyone’s desire to buy designer goods for a bargain.<br />
&nbsp;<br />
Gilt also makes you feel special, as if you are attending an exclusive sample sale &#8211; an offline behavior that was until recently only available to a very select group.<br />
&nbsp;<br />
Another e-commerce company with an interesting business model is <a href="http://www.renttherunway.com" target="_blank">Rent The Runway</a>. As their name suggests, you can rent &#8211; rather than buy &#8211; the latest fashions.<br />
&nbsp;<br />
Rent the Runway is also capitalizing on a very popular offline behavior of borrowing a dress from a girlfriend &#8211; so you don’t have to spend several hundred dollars on an item you’ll only wear once to a special occasion. A less realistic &#8211; but far more glamourous example of this behavior &#8211; is a celebrity being lent a designer dress to wear on the red carpet.<br />
&nbsp;<br />
<a href="http://www.tumblr.com" target="_blank">Tumblr</a> &#8211; a blogging platform &#8211; is one of the hottest Internet companies around, with over 13 billion monthly page views. It allows users to save and share inspirational images and other content, just like tearing out pages of a magazine In an offline world.<br />
&nbsp;<br />
Tumblr also often serves as a fashion diary, with many models, designers, and brands using it as a platform to post looks and latest fashion trends. What did <a href="http://hilaryhrhoda.tumblr.com/" target="_blank">Hilary Rhoda</a> &#8211; this is her actual tumblr &#8211; or your fashionable friend wear today? No need for glossy magazines or lengthy phone calls &#8211; we can easily find out with one click of a button.<br />
&nbsp;<br />
<a href="http://www.pinterest.com" target="_blank">Pinterest</a> is another company that allows users to both save &#8211; or pin, thus the name Pinterest &#8211; and share beautiful images, recipes, and any other sources of inspiration. Again, no need to tear out pages or clip recipes from a magazine &#8211; it’s all online.<br />
&nbsp;<br />
Pinterest also appeals to a huge community of scrapbooking enthusiasts. You can create boards &#8211; or scrapbooks &#8211; for your wedding, baby shower, a trip, or simply to share with friends.<br />
&nbsp;<br />
A somewhat different take on inspirational moodboards &#8211; a perennial favorite with the fashion set &#8211; is executed by <a href="http://www.polyvore.com" target="_blank">Polyvore</a>. Rather than just collect images, users combine them in collages &#8211; usually done offline with polaroids, push pins, tape, and cork boards.<br />
&nbsp;<br />
Polyvore also allows aspiring fashionistas to mix and match items to create outfits. Users can browse an extensive database and pick styles and trends they like.<br />
&nbsp;<br />
<a href="http://www.clothia.com" target="_blank">Clothia</a> is a company I am a bit partial to <img src='http://www.silenok.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' />  It’s a fashion technology platform that allows users to create virtual closets and outfits and share them with friends to give and receive style advice.<br />
&nbsp;<br />
Clothia also allows users to virtually try on clothes via a webcam &#8211; a very typical offline behavior of trying clothes on, or holding a garment on a hanger and looking in the mirror, now available online.<br />
&nbsp;<br />
And what I consider one of the most interesting applications of offline to online behavior is <a href="http://www.youtube.com" target="_blank">YouTube</a> videos. Shoppers love to tell friends about their amazing fashion finds. Now imagine sharing them with a community of tens of millions of friends &#8211; like <a href="http://www.youtube.com/dulcecandy87" target="_blank">Dulce Candy</a>, pictured here, is doing. Her videos of “style hauls” got over a hundred million views.<br />
&nbsp;<br />
Another hugely popular YouTube star is a makeup guru <a href="http://www.youtube.com/MichellePhan" target="_blank">Michelle Phan</a>. She went from doing friends’ makeup to videotaping her makeup lessons to international stardom. Michelle’s videos got more than 400 million views and she now has more than 1.6 million followers on YouTube &#8211; that’s a small country.<br />
&nbsp;<br />
There are many ways in which the Internet is helping consumers enjoy the same behaviors online as they have historically exhibited offline. So, what trends can we expect to see in the next five years?<br />
&nbsp;<br />
First of all, online shopping will grow significantly to become close to 20-25% of overall retail spending.<br />
&nbsp;<br />
We will see deeper connections between offline and online &#8211; merchants and companies will be integrating in-store, mobile, and online experiences. For example, you’ll be able to come to a store, virtually try on an item, and buy it on your phone, to be shipped to your house overnight.<br />
&nbsp;<br />
The Internet will pave the way for truly immersive, social, and interactive fashion experiences &#8211; whether that is shopping via <a href="http://www.xbox.com/kinect" target="_blank">Kinect</a> or mobile, social sharing, group buying, or enabling consumers to open up their own storefront with a click of a button.<br />
&nbsp;<br />
 Finally, there will be a new wave of amazing technology companies that will tap into existing offline behaviors to transform the way that we shop today. We are truly at the forefront of a fashion technology revolution and I am excited to be a part of it.</p>
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		</item>
		<item>
		<title>&#8220;What is the Internet?&#8221; &#8211; updated slides</title>
		<link>http://www.silenok.com/posts/internet-updated</link>
		<comments>http://www.silenok.com/posts/internet-updated#comments</comments>
		<pubDate>Wed, 22 Feb 2012 00:35:06 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.silenok.com/?p=201</guid>
		<description><![CDATA[&#160; Here are the updated slides for my &#8220;What is the Internet?&#8221; talk. &#160; &#8220;What is the Internet&#8221; (.pdf)]]></description>
			<content:encoded><![CDATA[<p>&nbsp;<br />
Here are the updated slides for my &#8220;What is the Internet?&#8221; talk.<br />
&nbsp;<br />
<a href="http://silenok.com/content/InternetOverview.pdf">&#8220;What is the Internet&#8221; (.pdf)</a></p>
]]></content:encoded>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Join us: Fashion Intern</title>
		<link>http://www.silenok.com/posts/join-us-fashion-intern</link>
		<comments>http://www.silenok.com/posts/join-us-fashion-intern#comments</comments>
		<pubDate>Mon, 12 Sep 2011 22:38:15 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.silenok.com/?p=155</guid>
		<description><![CDATA[&#160; UPDATE: Position Filled &#160; Do you love Garance Doré, Asos.com, Rick Owens and Azzedine Alaïa? Do you read everything about fashion and wish you could contribute and become known in the space? Do you want to help grow the next &#8220;IT&#8221; fashion destination? &#160; &#160; This is your perfect opportunity! We are looking for [...]]]></description>
			<content:encoded><![CDATA[<p>&nbsp;<br />
UPDATE: Position Filled<br />
&nbsp;<br />
Do you love Garance Doré, Asos.com, Rick Owens and Azzedine Alaïa? Do you read everything about fashion and wish you could contribute and become known in the space? Do you want to help grow the next &#8220;IT&#8221; fashion destination?<br />
&nbsp;<br />
<span id="more-155"></span></p>
<p>&nbsp;<br />
This is your perfect opportunity! We are looking for a fashion intern to help us create online content, style looks, and get involved in everyday operations. Some of your responsibilities might include:</p>
<p>- Communicate with fashion bloggers/designers/models<br />
- Style looks for our website<br />
- Write about the latest happenings in the world of fashion<br />
- Research fashion bloggers and designers<br />
- Help promote Clothia on Twitter, Facebook, and other social media<br />
- Help with organizational details for events and campaigns<br />
- Assist with photo and video shoots</p>
<p>&nbsp;<br />
This is a very hands-on position &#8211; perfect opportunity for an ambitious person with a desire and ability to grow fast. An ideal person will be very social media-savvy &#8211; an active Twitter or Tumblr account and a blog are a big plus.</p>
<p>This is a part-time or full-time paid internship (compensation in form of small stipend).</p>
<p>&nbsp;<br />
Please email your resume to jobs at clothia dot com. Please include &#8220;Fashion Intern&#8221; in the subject line and include links to your Twitter/Tumblr accounts and blog (if any) in the body of the email. Also, if you have an account on Polyvore, please include your username and examples of your styled looks.</p>
]]></content:encoded>
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		<item>
		<title>Fashion140 &#8211; Virtual Fitting Room panel</title>
		<link>http://www.silenok.com/posts/fashion140-virtual-fitting-room-panel</link>
		<comments>http://www.silenok.com/posts/fashion140-virtual-fitting-room-panel#comments</comments>
		<pubDate>Tue, 16 Aug 2011 21:39:46 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.silenok.com/?p=142</guid>
		<description><![CDATA[&#160; I was one of the invited speakers at Fashion140 conference May 4, 2011 at the Lincoln Center, sponsored by Fashion Week at Lincoln Center. Not only it was an amazing day where I got to meet everyone from Stephanie Winston Wolkoff to Joe Zee, it was also a great learning experience! Here&#8217;s a video [...]]]></description>
			<content:encoded><![CDATA[<p>&nbsp;<br />
I was one of the invited speakers at Fashion140 conference May 4, 2011 at the Lincoln Center, sponsored by Fashion Week at Lincoln Center. Not only it was an amazing day where I got to meet everyone from Stephanie Winston Wolkoff to Joe Zee, it was also a great learning experience! Here&#8217;s a video of our panel discussion:<br />
&nbsp;<br />
<iframe src="http://player.vimeo.com/video/23922256?title=0&amp;byline=0&amp;portrait=0" width="499" height="283" frameborder="0"></iframe></p>
]]></content:encoded>
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		<slash:comments>0</slash:comments>
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		<title>Join us: Clothia seeks Lead Interaction Designer</title>
		<link>http://www.silenok.com/posts/lead-interaction-designer</link>
		<comments>http://www.silenok.com/posts/lead-interaction-designer#comments</comments>
		<pubDate>Tue, 17 May 2011 00:57:07 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.silenok.com/?p=118</guid>
		<description><![CDATA[&#160; UPDATE: This position has been filled. &#160; &#160; Clothia is a fashion technology platform that allows users to virtually try on clothes using augmented reality via their webcam. Clothia users can also create virtual closets, mix-n-match items they own and items from online retailers, and share their looks with friends. &#160;Lead Interaction Designer is [...]]]></description>
			<content:encoded><![CDATA[<p>&nbsp;<br />
UPDATE: This position has been filled.</p>
<p>&nbsp;<br />
<span id="more-118"></span></p>
<p>&nbsp;<br />
Clothia is a fashion technology platform that allows users to virtually try on clothes using augmented reality via their webcam. Clothia users can also create virtual closets, mix-n-match items they own and items from online retailers, and share their looks with friends.</p>
<p>&nbsp;Lead Interaction Designer is our most critical role as you will define the future of the high-tech online shopping experience.</p>
<p>&nbsp;This means creating an experience that is engaging, fun, social, and interactive. It means helping users shop, virtually try on outfits, find their unique style, and share it with friends &#8211; all in one place. It means connecting cutting-edge technology with high-end fashion in a seamless, beautiful, and relevant way.</p>
<p>&nbsp;Your mission is incredibly challenging as you will be responsible for creating cohesive experiences across advanced Web applications, iPhone, iPad, and other mobile and touch-screen interfaces. The fashion world is ready to be disrupted by technology and you will be on the forefront of this revolution.</p>
<p>&nbsp;You will be working with our founder and engineering team, and will be responsible for creating detailed prototypes, interaction scenarios, managing multiple design projects, and making complex technology clear and helpful to our users.</p>
<p>&nbsp;Ideally, you live and breathe fashion. More importantly, you have created amazing web applications that users love, and preferably mobile and touch applications as well.</p>
<p>&nbsp;If you want to define the future of high-tech online shopping, we want to hear from you.</p>
<p>&nbsp;Please email Elena at jobs at clothia dot com. Please include links to products you have designed.</p>
]]></content:encoded>
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		<item>
		<title>Virtual Closet from the movie &#8220;Clueless&#8221;</title>
		<link>http://www.silenok.com/posts/virtual-closet-from-clueless-the-movie</link>
		<comments>http://www.silenok.com/posts/virtual-closet-from-clueless-the-movie#comments</comments>
		<pubDate>Thu, 12 May 2011 02:28:03 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.silenok.com/?p=125</guid>
		<description><![CDATA[&#160; This is a clip from the movie &#8220;Clueless&#8221; &#8211; it is literally 20 seconds long (I added some extra footage from later in the movie) but girls remember it and remind me of it whenever I tell them about Clothia&#8230; &#160;]]></description>
			<content:encoded><![CDATA[<p>&nbsp;<br />
This is a clip from the movie &#8220;Clueless&#8221; &#8211; it is literally 20 seconds long (I added some extra footage from later in the movie) but girls remember it and remind me of it whenever I tell them about Clothia&#8230;</p>
<p>&nbsp;<br />
<iframe width="540" height="340" src="http://www.youtube.com/embed/t746Tbm5z8o?rel=0" frameborder="0" allowfullscreen></iframe></p>
]]></content:encoded>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Columbia ADI lecture</title>
		<link>http://www.silenok.com/posts/columbia-adi-cu-lecture</link>
		<comments>http://www.silenok.com/posts/columbia-adi-cu-lecture#comments</comments>
		<pubDate>Mon, 04 Apr 2011 22:43:09 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.silenok.com/?p=104</guid>
		<description><![CDATA[&#160; This past Friday I had the pleasure of reprising my class &#8220;What is the Internet?&#8221; at Columbia University for Application Development Initiative (ADICU) and HackNY. ADICU is a great organization of super talented students who like to develop cool applications. I was extremely impressed with the crowd who showed up for the lecture &#8211; [...]]]></description>
			<content:encoded><![CDATA[<p>&nbsp;<br />
This past Friday I had the pleasure of reprising my class &#8220;What is the Internet?&#8221; at Columbia University for <a title="ADI @ CU" href="http://adicu.com" target="_blank">Application Development Initiative</a> (ADICU) and <a title="HackNY" href="http://hackny.com" target="_blank">HackNY</a>. ADICU is a great organization of super talented students who like to develop cool applications. I was extremely impressed with the crowd who showed up for the lecture &#8211; I wish I were that smart back in college! Great questions, strong desire to learn, and lots of interest in technology.</p>
<p>&nbsp;<br />
The event was organized by Professor <a href="http://www.columbia.edu/~chw2/" target="_blank">Chris Wiggins</a> of HackNY &#8211; another great organization that encourages student developers and educates them about exciting opportunities in startups and technology.</p>
<p>&nbsp;<br />
Here are my lecture notes: <a href="http://silenok.com/content/InternetOverviewColumbia.key">&#8220;Internet Overview&#8221; (.key)</a> <a href="http://silenok.com/content/InternetOverviewColumbia.pdf">&#8220;Internet Overview&#8221; (.pdf)</a></p>
]]></content:encoded>
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		</item>
		<item>
		<title>&#8220;What is the Internet?&#8221; class notes</title>
		<link>http://www.silenok.com/posts/what-is-the-internet-class-notes</link>
		<comments>http://www.silenok.com/posts/what-is-the-internet-class-notes#comments</comments>
		<pubDate>Mon, 21 Mar 2011 22:13:05 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.silenok.com/?p=98</guid>
		<description><![CDATA[&#160; For the last couple of months, I have been teaching a class at General Assembly, &#8220;What is the Internet?&#8221;, together with Charlie Robbins of Nodejitsu. It is an 8-lecture series about Internet architecture, principles, history and security. It has been a really fun experience to rehash my knowledge of the space and convert it [...]]]></description>
			<content:encoded><![CDATA[<p>&nbsp;<br />
For the last couple of months, I have been teaching a class at General Assembly, &#8220;What is the Internet?&#8221;, together with Charlie Robbins of <a title="Nodejitsu" href="http://nodejitsu.com" target="_blank">Nodejitsu</a>. It is an 8-lecture series about Internet architecture, principles, history and security. It has been a really fun experience to rehash my knowledge of the space and convert it to concepts that are easily understood by those without a Computer Science degree.</p>
<p>&nbsp;<br />
Here are my lecture notes (Charlie taught the odd-numbered lectures):</p>
<p>&nbsp;<br />
Lecture 2: <a href="http://silenok.com/content/InternetBasicPrinciples.key">&#8220;Basic Principles&#8221; (.key)</a> <a href="http://silenok.com/content/InternetBasicPrinciples.pdf">&#8220;Basic Principles&#8221; (.pdf)</a></p>
<p>&nbsp;<br />
Lecture 4: <a href="http://silenok.com/content/WorldWideWeb.key">&#8220;World Wide Web&#8221; (.key)</a> <a href="http://silenok.com/content/WorldWideWeb.pdf">&#8220;World Wide Web&#8221; (.pdf)</a></p>
<p>&nbsp;<br />
Lecture 6: <a href="http://silenok.com/content/InternetSecurity.key">&#8220;Internet Security&#8221; (.key)</a> <a href="http://silenok.com/content/InternetSecurity.pdf">&#8220;Internet Security&#8221; (.pdf)</a></p>
]]></content:encoded>
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		<title>Clothia demo at New York Tech Meetup</title>
		<link>http://www.silenok.com/posts/clothia-demo-at-new-york-tech-meetup</link>
		<comments>http://www.silenok.com/posts/clothia-demo-at-new-york-tech-meetup#comments</comments>
		<pubDate>Thu, 03 Mar 2011 23:31:41 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Augmented Reality]]></category>
		<category><![CDATA[Fashion]]></category>
		<category><![CDATA[Tech]]></category>

		<guid isPermaLink="false">http://www.silenok.com/?p=69</guid>
		<description><![CDATA[&#160; I presented Clothia at NY Tech Meetup on March 1, 2011. It was amazing to hear all the positive feedback and a big round of applause as I was showing our virtual fitting room, &#8220;Clueless&#8221; style&#8230; Thank you everybody! &#160; &#160;And here is some twitter love: &#160;]]></description>
			<content:encoded><![CDATA[<p>&nbsp;<br />
I presented <a title="Clothia, fashion technology platform" href="http://clothia.com" target="_blank">Clothia</a> at NY Tech Meetup on March 1, 2011. It was amazing to hear all the positive feedback and a big round of applause as I was showing our virtual fitting room, &#8220;Clueless&#8221; style&#8230; Thank you everybody!</p>
<p>&nbsp;<br />
<iframe width="480" height="295" src="http://cdn.livestream.com/embed/nytechmeetup?layout=4&#038;clip=pla_d4931409-e83f-4606-8a7b-9d8019cf9469&#038;color=0xe7e7e7&#038;autoPlay=false&#038;mute=false&#038;iconColorOver=0x888888&#038;iconColor=0x777777&#038;allowchat=true" style="border:0;outline:0" frameborder="0" scrolling="no"></iframe><br />
<br />
&nbsp;And here is some twitter love:<br />
<img src="/images/Twitter1.png" alt="Twitter love for Clothia" width="500" /><br />
&nbsp;<span id="more-69"></span><br />
<img src="/images/Twitter2.png" alt="Twitter love for Clothia" width="500" /><br />
<img src="/images/Twitter3.png" alt="Twitter love for Clothia" width="500" /><br />
<img src="/images/Twitter4.png" alt="Twitter love for Clothia" width="500" /></p>
]]></content:encoded>
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		<title>Five Rules for Outsourcing</title>
		<link>http://www.silenok.com/posts/five-rules-for-outsourcing</link>
		<comments>http://www.silenok.com/posts/five-rules-for-outsourcing#comments</comments>
		<pubDate>Mon, 21 Feb 2011 19:45:38 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Russia]]></category>
		<category><![CDATA[Tech]]></category>

		<guid isPermaLink="false">http://www.silenok.com/?p=64</guid>
		<description><![CDATA[As an entrepreneur who has employed a team of developers offshore for my startup, Clothia, I have learned some general rules to make outsourcing work. Here are some suggestions - but ultimately, companies should evaluate costs, development time, and effort spent developing a product onshore vs offshore before they make a long term commitment.]]></description>
			<content:encoded><![CDATA[<p>&nbsp;<br />
UPDATE: My post is also on <a href="http://www.businessinsider.com/five-rules-for-outsourcing-2011-2" target="_blank">Business Insider</a>.</p>
<p>&nbsp;<br />
Outsourcing is a tricky subject. Heralded ten years ago as a business practice that would change the corporate world by <a title="&quot;The World is Flat&quot; by Thomas Friedman" href="http://en.wikipedia.org/wiki/The_World_Is_Flat" target="_blank">making it flat</a>, outsourcing is still an extremely risky endeavor. As an entrepreneur who has employed a team of developers in St. Petersburg, Russia for my fashion technology startup, <a title="Clothia, a fashion technology platform" href="http://clothia.com" target="_blank">Clothia</a>, for the last seven months, I’ve learned some general rules to make outsourcing work. Here are a few suggestions:</p>
<p>&nbsp;<br />
1. You need to have a project manager who speaks the developers’ native language and understands their culture.<br />
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Most foreign developers understand English well enough to read technical documentation (especially if they work on the “bleeding edge” of tech, like the developers I get to work with) but unless they’ve lived in an English-speaking country, their language abilities are not going to be sufficient for meaningful, real-time communication. Cultural and educational differences between countries also play a role.  My Russian developers prefer goal-oriented assignments with a degree of creative freedom, in contrast to developers from other countries who &#8211; in my experience &#8211; have preferred more micro-management. Also, having personal interactions builds a closer relationship that benefits both the company and the developers. At Clothia, we have daily Skype chats and regular in-person visits.<br />
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2. You need to have great communication and task management software.<br />
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One of the things we take for granted when we share the same physical office with teammates is what I call “ambient learning”: acquisition of knowledge that happens through overhearing conversations, impromptu chats in the kitchen, etc. You lose this effect when outsourcing. Therefore, fastidious tracking of tasks and goals becomes critical. At Clothia, we’ve been successfully using <a title="Teambox" href="http://teambox.com" target="_blank">Teambox</a> for this purpose (<a title="Basecamp, project management software" href="http://basecamphq.com" target="_blank">Basecamp</a> and <a title="Yammer" href="http://www.yammer.com" target="_blank">Yammer</a> are other good alternatives). The time difference between countries can also become an asset if managed properly. Russia is 8 hours ahead of NYC so I can assign tasks and review progress while my developers sleep for genuine round-the-clock productivity. For most teams the ideal communication schedule evolves over time. At Clothia, we went from once-a-day Skype calls to as-needed chats/emails/assignments and found that it was more successful.<br />
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3. If done right, outsourcing can produce great results for less money.<br />
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One of the reasons I decided to go with an offshore team was that I knew there was no lack of talent in Russia (I am Russian myself). There are only so many MIT-trained engineers produced every year, and most of them are snapped up by Google, Facebook, Wall Street, etc. Outsourcing allowed me to gain access to their Russian equivalents. Additionally, foreign engineers average lower salaries than their American counterparts and can do just as good of a job.<br />
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4. For a long-term project and smaller teams, employ developers directly versus going through an outsourcing firm.<br />
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When I started Clothia, I had the choice between a great outsourcing firm based in St. Petersburg and several independent freelance developers both in NYC and in St. Petersburg. I chose to employ developers directly so they became members of Clothia team and the success of our startup is directly tied to their sense of achievement. Direct employment also allows greater flexibility with development schedules and tasks. In contrast, outsourcing firms normally work from a specifications document that is agreed upon in advance &#8211; not ideal for a startup.<br />
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5. Outsource development, not design or user experience.<br />
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Aesthetic standards differ between cultures, and this becomes very apparent when product design is involved. We found it challenging to find foreign graphic designers who could produce the visual experience we wanted. We decided to hire onshore instead and have been happy with the results. If you are building a product where design is secondary, outsourcing design can work. Otherwise, go to someone with experience in the field who is local and can meet in person to get a feel for the product and for the team.<br />
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Ultimately, companies should evaluate costs, development time, and effort spent developing a product onshore vs offshore before they make a long term commitment. Outsourcing worked very successfully for Clothia, but I know of other companies that have struggled.</p>
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