Business Strategy for Software Executives
July 3, 2006
10 Tactics for Managing Offshore Costs
As some vendors talk of moving work back to the U.S., other vendors are employing best practices to maximize the business value of offshore operations while containing costs.
By S. Sadagopan, Satyam
With all of the excitement about the benefits of offshoring software development hitting the news over the past few years, everyone knew the “hype” pendulum would no doubt begin to swing in the opposite direction. And it has.
There is mounting evidence that the bloom is off the offshoring rose, so to speak. Even the Sand Hill Group study on offshoring found evidence that communication challenges and rising costs were eroding satisfaction with offshore operations to some extent.
Last month, Mike Fields of Kana Communications wrote about his decision to end his company’s offshore development. One of his key concerns was the rising costs his firm was experiencing.
Yet despite the challenges, offshoring remains a compelling option for many software companies. The vast majority of vendors continue to offshore and realize significant competitive advantages for their companies. As their sophistication and experience with offshoring increases, many offshorers are seeking out new ways to control costs while retaining business value.
Open Source – With Few Open Benefits
The promise of open source has always been high quality at low costs, leveraging the spirit of both community development and the individual customization. The reality delivered by today’s commercial open source providers is something different. Billy Marshall, CEO of rPath, analyzes the way vendors work with customers and says they have a long way to go in this week’s post to the SandHill.com Blog on open source.
Fixing Your Credibility Problem
Technology vendors have been in the doghouse for years based on their tendency to overpromise and underdeliver – and they’re not alone. Consumers are increasingly skeptical of pitches from all kinds of product sellers. Nilofer Merchant of Rubicon says software vendors need to incorporate peer-to-peer marketing and other ways of connecting with users in order to improve their credibility – and their sales. Read more in this week’s post to the SandHill.com Blog on sales and marketing.
Publish Your Perspective!
The SandHill.com Blog wants your opinions. Send your thoughts on the enterprise software industry to firstname.lastname@example.org and we’ll publish them in our blog.
Poll: EMC-RSA Synergy?
Serial acquirer EMC made headlines with its purchase of RSA Security. Can EMC make the storage-security play work?
Last week, SandHill.com readers gave their opinions on whether Oracle’s acquisitions are paying off.
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“There is no sadder sight than a young pessimist, except an old optimist.”
Courtesy of Malcolm Kusher, The Kushner Group
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