Outsourcing landscape has changed long ago
In the past when I was working with outsourcing development partners the cost arbitraging was one of the prominent reason for sending outsourcing work to another country. However, the time has changed and now skill and knowledge gap is one of the prominent reason for outsourcing.
There is no doubt software development outsourcing has helped many companies to grow exponentially without investing too much money. The money that was going to setup development infrastructure, was used to accelerate business growth.
Each company had it's own set of reasons for offshoring the development work, however following were possible reasons;
- Cost arbitrage (lower development cost)
- Urgency to release features as competitor were doing the same.
- Hard to find skilled developer for the team. Still true somewhat.
- Accelerate business growth exponentially
You see the cost were biggest factor at the time. No one was ready to look into quality and focused on experience. The bargaining was to get lower price per hour than quality and relationship over time. The results were the same. Many projects couldn't get completed as per specification and there were many failures during the development stages.
However the landscape has changed and so company priorities. Following are new reasons for hiring offshore/outsource development team;
- Accelerate business growth exponentially without worrying about competitor growth rate.
- Quality concerns over development, though still completed features still play big role.
- Relationship with team members for future outcomes.
Don't you feel I am going very far away from reality?