Offshore Software Development – Global

Software In order to be successful, each entity has to be .petitive and hence evolutionary in nature. Same is applicable to software industry. The software industry has changed significantly over last 20 years and will continue its evolution in the following 20 years. In last 20 years, so many IT jobs have moved out of G-7 countries that the software development (number of jobs) share is almost close to 50-50 between G-7 and the rest of the world. Let"s look at some of the relevant factors that will shape the offshore software development market in .ing decades. Most of the IT vendors are global as most of the large .panies are doing the same. Just follow the money! As large .panies from non-IT sectors are expanding in non G-7 world, it makes sense even for IT .panies to follow the suit. This factor along with already mature IT industry in regions like Asia (India, China) only makes the offshore effect more pronounced. These effects will be.e quite significant over next decade especially in countries like India, where 50% of the population is below 25 years of age, which is important to provide skilled resources. What will be the effect on offshore software development market? There are multiple dimensions of these effects. 1. Distributed Teams: The offshore development will be.e more diverse in terms of geography. These distributed project teams may be part of different organizations. This will require new models like business network model to be.e more prevalent. 2. Organization Structure and Size: In order to operate in frictionless business networks, offshore development .panies will tend to be leaner. Either large software .panies will create more autonomous organizations or they will split into totally independent entities. 3. Moving Up The Ladder: The project work has already started to move from pure maintenance to full lifecycle projects. In .ing decade, more and more IT products and business applications will start .ing from the developing areas. 4. Niche Software Factories: With the unprecedented growth in SMB market, there will be new players who shall provide specialized services to these small and medium .panies. The current models of large IT .panies are too rigid to adjust to rapidly changing requirements of SMB .panies. 5. Open Source and Public Sector: With the eGovernance initiatives all over the world, Open Source movement will flourish and be.e a viable platform so much so that even the private .panies will start adopting Open Source applications. 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