Excerpt from Chapter 11: The Future of Global Software Development

Change is the law of life. And those who look only to the past or present are certain to miss the future. - John F. Kennedy

We have almost finished our journey to the interesting other shores of outsourcing your software development. Along the way you have seen many advantages and disadvantages of offshore outsourcing.

Is offshore outsourcing of software development for everyone? Will U.S. firms continue to send more programming work offshore?

We reviewed how to decide whether it is right for you back in Chapter 1. The key reason for outsourcing has been the cost savings, and those savings are large-about a million dollars a year for a team of 12 outsourced engineers over hiring employees in the U.S. Now companies are rediscovering the original reasons for outsourcing non-core activities-improved performance and reliability. Yes, the cost savings are there, and still compelling. But the rapid ramp-up and reliability of outsourcing to a professional team, wherever they are in the world, will become the dominant benefit. After all, what is the point of cheap outsourcing if the results are not good?

Will India continue to dominate? Or will rates there rise so high that they are priced out of the market, forcing Indians to outsource to other destinations to keep costs low? Will outsourcing head south, to South America and Africa, where programming services can be delivered in time zones similar to those of the North American and European markets that need them?

We covered many other outsourcing destinations in Chapter 2. It could be easier for you to do your software development in Brazil rather than Bangalore. India will remain the clear leader for some time. Other countries of the world should look to India as a “rich uncle” that can offer valuable advice, wisdom, and even investment as outsourcing services are offered from more diverse locations.

Globalization: Good or Bad?

In his book The World Is Flat, Tom Friedman defines three versions of globalization that have developed over time. According to Friedman, we are now in Globalization 3.0, which he believes started around the year 2000. And I think this current version of globalization is a good one.

When I was in high school, my brother gave me the book Flatland by Edwin A. Abbott. It portrays Flatland, a world of only two dimensions, in which a square Flatlander discovers the third dimension and tries to explain it to his fellow two-dimensional compatriots, without much success.

Flatland first caused me to feel a sense of superiority over the lowly shapes inhabiting Flatland who could perceive only two dimensions. Then I realized that my arrogance at being able to perceive a full three dimensions would seem pathetic to any creature that inhabited a universe of four dimensions or higher. Humility, or at least caution, was definitely in order.