The Promise and Perils of Offshore Software Development

The promise of doing software development offshore is very alluring. It can mean faster delivery time. It can mean lower rates. It can mean access to skills that you do not have.

Large corporations began realizing this benefit during the tight labor market times of the late 90's. In order to keep the prices down, smart companies took advantage of foreign workers through the H1-B immigration program.

As technology has advanced, communication abroad has become easier and easier. Telecommunications abroad is becoming consistently more reliable. Internet chat allows for quick, personal meetings with groups spread across the globe.

A recent Business Week article, shows how the offshore market has moved downstream. The same international benefits that large corporations have, are now available to small businesses. However, this is not always easy

There are a number of barriers that have slowed the wide scale adoption of this process. One, is that many people are still not comfortable with 'chatroom deals'. Many people, especially for an expensive software project, want to have the comfort of face to face meetings. Other times, the reliability of the transaction can be a concern. In addition, the waters can be very murky for buyers that do not have a firm understanding of technology

Eventually, these concerns will fall. Some small businesses will work through brokers or on site project managers to find reliable services. Others will brave the waters themselves. However, for the long term, the skills and the price of the global market are too compelling to ignore.

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