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Offshore Software Development Primer

If you are a commercial software developer or an enterprise that develops software, you have likely implemented a strategy for information technology outsourcing and offshore software development. If you haven’t, the topic is likely top of mind. For companies who have implemented an offshore software development strategy, many have done so in the Indian IT market by outsourcing software development to an Indian IT provider. As the Indian offshore software development market has had tremendous success, however, it has become problematic for many North American independent software vendors (ISV) and corporations. Issues such as high rates of employee turnover and inflation in India have caused the overall cost to productivity ratios of Indian offshore software development strategies to become less attractive. This coupled with time zone, cultural, and quality gaps have caused many to re-think their decision to offshore software development to India. The question then becomes, “How does a company hedge their India strategy?”

For companies who are later in the curve and have not yet implemented an offshore software development strategy, they actively evaluate India, China, Brazil, Russia, Thailand, Indonesia, Malaysia, and Mexico as options. Where should they go? Who has best pricing today with the least stability risk for tomorrow?

The answer to both dilemmas lies in the concept of dual shoring or choosing a domestic provider with stable offshore operations. In the beginning, only large systems integrators such as Accenture, EDS, or IBM could offer dual shore strategies. However, as captive offshore development centers have become mainstream for professional United States (US) based services firms, it is possible to choose a services provider that meets your size or vertical needs. Dual Shore providers that have either a Russia or China strategy are a great place to start. eConsortian is a US Services firm based in Dallas, TX who chose Russia. Learn about our Dual Shore software development strategy integrating the US and Russia.

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