Software Pulse

Business Strategy for Software Executives

July 3, 2006

S. Sadagopan

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.


Last Chance for “Next Big Thing” Companies!

Enterprise 2006 is just around the corner! The ninth annual invitation-only gathering of software CEOs and investors will take place in Pebble Beach, Calif. on October 8-10, 2006. One of the eventís most popular sessions allows a select-group of fast-growth software CEOs to present why their company will be the next Microsoft, SAP or Oracle. Click here to nominate your company for this prestigious opportunity and visit the Enterprise 2006 site to find out more about the conference. Act now - the deadline for nominations is July 15!

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 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 Blog on sales and marketing.

Publish Your Perspective!

The Blog wants your opinions. Send your thoughts on the enterprise software industry to and we’ll publish them in our blog.

Hat’s Off!

Red Hat’s solid earnings and a legal decision against SCO mark a big week for open source; plus EMC buys big, Tata talks big, and a big retailer gets into the SaaS game.  Read these stories and more news of the week in the weekly news summary.

Poll: EMC-RSA Synergy?

Serial acquirer EMC made headlines with its purchase of RSA Security. Can EMC make the storage-security play work? 
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Last week, readers gave their opinions on whether Oracle’s acquisitions are paying off.
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Parting Thought

“There is no sadder sight than a young pessimist, except an old optimist.”
Mark Twain

Courtesy of Malcolm Kusher, The Kushner Group