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Survey: More Offshoring than Outsourcing in Software Development?

Outsourcing is often closely related to offshoring in software
development, but you can outsource onshore and you can create offshore
subsidiaries. This seems to be the current trend for large occidental
organisation that want to profit for lower costs in countries like
India, but maintain a high control on the process. However, developers
in Europe or North America feel no differences if their Asian
"competitor" work for a subsidiary or for another organisation. A
recent poll from Methods & Tools wanted to know if applications are
developed exclusively inside organisations or if outsourcing software
development services are used.

The majority of the 346 respondents were equally split between those
that are not using outsourcing and those that use it, partially or
completely. Complete outsourcing is done by only 6% of participants.
There is a need to keep internal expertise when outsourcing is used.
The phenomenon of outsourcing of IT services is well known. An article
of McKinsey Quarterly estimated the global market for IT and business
process outsourcing to $30 billion. The part of software development
in this growing market is less known and discussed. In another recent
survey published by the Software & Information Industry Association
(SIIA), 60% of the participants were offshoring software development
efforts and half of them were doing it with external providers.

Get the complete results of this survey with references on Methods &

Feb 26 '07 #1
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