"Caution" About Offshore Outsourcing

It has been reported on the pages of Enterblog many times, the numerous benefits that offshore outsourcing provides. These include reduced cost of development, fast development times, and access to highly qualified engineers. In addition, outsourcing in general, offers the flexability to use services, only when they are needed.

On the otherhand, firms should be aware of some potential drawbacks of relying too heavily on the practice of outsourcing. The biggest concern is that companies that outsource will lose the technical aptitude and understanding that comes with participating in a technical project.

This can be a big concern when a companies core value comes from the project that it is outsourcing. As an example, there would be danger in Adobe outsourcing development of key algorithms within Photoshop for the optimization of images. This special experience, happening on a team that is working in close proximity to with other product designers and planners can result in creative product enhancements.

There are ways of increasing participation by offshore firms to lessen this effect. For instance, an outsourcing company can hire it's own developers to work in offshore development centers. By keeping key developers on a team for an extended period, many of these benefits can be reached. However, communication technologies must still advance further before the real physical presence of a developer can be replaced.

Another concern of outsourcing, is the increased dependence on an outside company. If the company that outsources is not careful, they can tie their own fate to the fate of their offshore partners.

This can, at least in part, be counter-balanced by certain practices. First, key strategic decisions should still be made and understood by the company that decides to outsource. The company should employ technology architects and strategists who are familiar with the key technologies and are able to think clearly about the role of technology within the company.

In addition, a smart company must demand that code developed by it's offshore partner is self testing. There are various ways to accomplish this, depending on the platform. However, unit testing is currently the most popular.

An evenhanded account of the benefits and drawbacks can be hard to find. However, companies that wish to remain competitive must understand this global marketplace. The rate of change in the industry will only quicken in the coming year.