Ockham Technologies

Recommendation: Though Ockham Technologies is facing several important challenges, the

most pressing issue is the fact that they have a roughly 6-month window to develop and deliver a

fully functional product to IBM. In order to most effectively address this, the firm needs to move

forward by outsourcing the development of their product to the Hotshot Coders. Timing is of

the essence in this situation, and the firm needs to deliver on this contract with IBM if they want to

stay in business; the rest of the challenges should be second priority to developing and delivering a

viable product.

Prioritizing the IBM Deal: A full contract with a firm like IBM would be extremely

advantageous for many entrepreneurs and their start-ups. Now that they have it and have only 6

months to develop a product, they should prioritize it over all other decisions, including the

development of their full product suite. A company that has successfully developed a product for

IBM can have so many more doors opened for it down the line. In addition, the successful delivery

of the software would lead to a $1mm cash infusion – significantly decreasing their need to raise

outside capital. Lastly, every professional industry has some degree of interconnectedness.

Ockham should consider the potential costs of failing to deliver on the IBM deal and what that

would mean for their reputation in the industry.

Developing the Software – The Decision to Outsource: Outsourcing the development of

Ockham’s proprietary software is not a long-term solution. Given the time constraint and

importance of delivering the product, however, it is necessary. The candidates presented to

Ockham for in-house development are not suitable for the role. Randy Anderson is another

consultant. Ockham needs someone who has a more detail-oriented, operationally-intensive

skillset to execute it. Gus Taylor, on the other hand, was relaxing on a beach enjoying his

severance package from a large company. His experience is different from that of a startup, and he
does not have the proper incentives to return to work to meet a tight deadline. Furthermore,

Ockham’s track record for selecting someone to develop their product (Flex Solutions) has also

not been successful. Hiring somebody to spearhead this product development requires time. In

addition, committing to someone as their lead developer is a significant decision that can have

serious implications for the future of the company; it is a decision that they do not have the time to

make and should not make lightly. This leaves the company with the option to outsource. NIIT,

while they have experience with outsourced products and seem “professional,” are located in India

in a different time zone and will likely need more explicit descriptions on what needs to be done to

develop the product, something that the Ockham team doesn’t seem to have the expertise on.

Thoughtmill, though based in Atlanta and likely more flexible with the hand-holding that will be

required by Ockham due to their lack of programming knowledge, does not have any expertise in

sales management (which will take time to learn). Thus, it seems that the Hotshot Coders is the

best bet. They are local, vetted by Ockham’s accelerator ATDC, have deep knowledge of sales

management, they’re willing to work long hours to meet the deadline, and they are significantly

cheaper than the other two options at $175,000. Though Ockham is in the process of raising

capital, they currently only have $75,000 of their initial $150,000 in founder capital in addition to

$100,000 from IBM. Not only are the Hotshot Coders Ockham’s ideal partner from a strategic

point of view, they are also the most suitable financially.

Conclusion: Ockham Technologies would be best served by proceeding with the Hotshot Coders.

Though only a short-term solution to their need to master development expertise, they need to

deliver on this IBM contract if they want to maintain their company’s reputation and capitalize on

the unique opportunity that they have been given. Hotshot is the best company to do this due to

their sales expertise, price point, and willingness to meet the firm’s tight deadline.