外购软件

近海软件开发-价值链的演变

您在近海软件开发状态一定现在听见了各种各样的理论。 可能您直接体验了它？ 我相信近海软件开发讨论，学会机会和演变有一段时间了将继续。 它是我创造这个站点的其中一个原因： 平的世界软件开发.

这个站点经常应付近海软件开发此刻。 它意欲为直接参考和社区交换提供环境。 在这个岗位，我希望在价值的演变在软件开发讲一个故事。 它是虚构的，但它根据真实的事件。 我是好奇的听见您的想法。 这故事….

在不那么距离通过，网开发公司确定那里是对纯净的后端软件开发服务的市场需要。 您知道，不是用户界面设计，不是实用性测试-正义功能编程。 Their clients often say something similar to: “正义节目功能请-这什么我们要它做，现在做它工作”。 The client doesn’t particularly care if it is Smalltalk or C or C++ or .Net or PHP or Java or ASP or TCL or PERL or Ruby on Rails or New ShinyLanguage. They just want it to work and and work well in their environment.

One day, web development company receives a request for proposal for a new client software development project. For this particular project, web development company creates a proposal based on resources of one developer architect and full-time employee(s) and/or one local software development programming contractor(s) to produce the software. In order to determine the proposal price of the project, development company looks at essentially two factors: perceived delivered value and operational cost. For value, the web development company is essentially delivering on two points: strategic design of “functionality” from the software architect and tactical implementation of the programming language/code. Also, included in the price of the project are applicable operational cost factors - monthly office space rent, employee salaries, contractor hourly rates, phones, internet access, insurance, etc.

Proposal Cost = $xyz

Client accepts and everyone is reasonably happy. Time rolls on, spring arrives, the sun shines, leaves turn colors, it rains, it snows.

Now, if web development services are inline with most other types of businesses, project fees should decrease over time. Not fall like the rain, but essentially the same service costs should decrease over time. Right? Simply put, client should expect to pay less than $xyz in a year from now for the same type of service. Notice this expectation has nothing to do with software quality determinations or h-1b visa or offshore software vs. inshore vs. rural source. There is an expectation from client that costs should decrease over time.

Now, if the paying client expects prices to decrease over time, something has to give for the web development company. Perhaps, the web development company needs to lower operational costs or promote an alternative, more cutting edge technical solution to keep project fees the same. (Selling the latest b/leading edge technology without significant increase in functional value just to maintain rates to clients is unethical and is partly the fault of the client for buying it. It is also a different topic entirely.)

To cut operational costs, web developer company decides to keep arcitectural design in-house and offshore the tactical development.

Cost = $xyz * .35

Cost is 35% lower and the client accepts the proposal.

Client wins- web development company wins - offshore software developer(s) wins. Win * 3. So, who doesn’t “win”? Frankly, the person who is at risk of negative change is the one who doesn’t see evolution trend the software development value chain. In this story, it is the developer who refuses to see offshore software developers as a viable option for tactical level programming. In this story, the local tactical programmer’s value is decreasing when web development company is attempting to “win” new engagements. It follows a similar trend line to the the client’s expectation of lower cost over time.

Now, hopefully, there are many openings to discuss this story on all kinds of levels. For example, a point could be made that web development company could focus on providing education resources to local tactical developers. This will increase skill sets which should lead to development time savings. Time savings implies lower cost. Or, client should not expect prices to lower over time or this story is based on waterfall development process and doesn’t jive with XP or Agile or suggesting software modelling tools to generate tactical code or somehow fit the old build vs. buy talk into the mix. But, I’ll leave these and many more openings to you. I attempted to write the story from an unbiased perspective, because I’m interested in hearing your thoughts. Leave comment or trackback with your thoughts.

PS - Check out the Cynosural blog from JosephDP who has some interesting posts regarding offshore software development.

This entry was posted on Wednesday, April 19th, 2006 at 8:01 am and is filed under Industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.