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The 3rs of Offshoring Software Development

Offshoring software development has changed. Once it was “let’s replace my guys with your guys and save some money”, a strategy that doesn’t acknowledge the investment that a software house has already made in its own intellectual property. Now the sentiment is “let’s offshore the development and move my guys into client facing and strategic roles that add more value to the organisation”.

This leverages the experience within the client’s team and simplifies getting buy-in from its members since they don’t feel threatened and their jobs get richer and more interesting. By preserving the intellectual capital that is its staff, the business enhances its intellectual property. Offshore software development is not really too different from insourcing, except that the challenges can be magnified by physical distance. Essentially, however, it remains the need to balance the triangle of people, technology and process.

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