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Outsourcing of Software development is probably one of the most sought-after approaches that comes to action whenever CEOs, CIOs and other IT leaders of an organization identify a need to develop back end Software, a web application or a mobile application that will help to improve or boost their business productivity. Information technology today has become more advanced and undergone changes manifolds and lately the IT Outsourcing market faces many challenges. This can also be attributed to the globalisation of teams (Offshore, nearshore), globally changing IT Infrastructure and more advanced technologies like IoT, machine learning, AI etc.

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IoT-technology is already extending the data foundation required to enhance the “Digital Business Eco System” and opens the path to new business opportunities. Digitizing the businesses requires a solid and well-defined data foundation. Currently discussed technologies like AI, RPA, machine learning – all the analytics and big data applications work on data retrieved from the business eco system. Automated data collection and various types of sensors embedded in IoT-technology need to be developed to build the enhanced data foundation.

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All phases of the software development life-cycle (SDLC) in a geographically distributed environment (offshore/nearshore set-up) should be well aligned so that proper connectivity and sink is established from the planning to executing stage. A lot of buzz has been growing in IT sector particularly in Software Development Outsourcing models. The Sourcing and Vendor Management Organizations at customers use risk mitigation strategies to avoid hassle in project delivery systems.

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American global management consulting firm A.T. Kearney’s recent report on “The Widening Impact of Automation” clears fog around the actual picture of IT Industry’s recent development i.e. Robotic Process Automation. According to the report due to Automation more than 1 million jobs are at risk in four countries alone US, Poland, India and Philippines. Automation has been here since quite a long time before disruption found its place in global business processes. It is an inevitable fact that technology is an evolutionary phenomenon and it will continuously improve in future. Automation has helped humans in every way to improve their quality of life by increasing productivity and efficiency in workplace.

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– We say the Core Principles of Successful Sourcing Remain to be Vital

Domestic Sourcing as the name suggests is procuring local talent available for getting software developed in-house and not going miles away or in a different time zone to get it done from a country far away at cheaper rates. A recently published article in NY Times reveals the changing scenario of US markets.
According to the article the practice of American countries to save money by outsourcing IT work at far offshore locations particularly India, China and other Southeast Asian countries is seeing a slowdown. The article says that companies are happier in outsourcing jobs near their own facility or at least in the same time zone. Some benefits which a company can avail from domestic sourcing are as follows:

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