Sunday, January 09, 2005

Offshore development - the worldwide debate

It's interesting that companies from Western countries which benefit from Globalism tend to complain when the tide washes the other way. This is never more true than software development, where offshore programming shops offering low-cost, efficiency and high quality are causing concern verging on panic in some areas.

Software has some interesting features, for example:

1. It has zero raw materials (unless you count knowledge as a raw material ... Hmmm ... maybe it is!)

2. It has near zero delivery / transport costs (the cost of an internet connection)

These are not unique to software - other examples include any other digital product, information products, capital (maybe?).

Of course local companies have some advantages that offshore companies do not for example:

1. they are physically close to the customer
2. the client and developer work on the same time zone
3. Zero language barriers

A great mix is a local company with an offshore office. This arrangement can bring the peace of mind that comes from having someone close by to talk to and also the lower costs that come from offshore development.

1 comment:

Anonymous said...

If a programmer is good and has something of value to offer his clients then what has he to fear?