Why Software Outsourcing Doesn't Work Anymore

Re:Why Software Outsourcing Doesn't Work Anymore by polskibus on Wednesday October 28, 2015 @06:54AM (#10463693)

Outsourcing doesn't have to be based on pure time&material model. Software houses have huge incentives to become more efficient - using scale to their advantage, becoming experts in technology, etc. - all that to compete with other software houses.

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Re:Why Software Outsourcing Doesn't Work Anymore by GregQuinn on Wednesday October 28, 2015 @08:17AM (#10463964)

I've dealt with many outsourcers (TCS, Infosys, Accenture, IBM etc.) and WITHOUT EXCEPTION their business model is time and materials.

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Re:Why Software Outsourcing Doesn't Work Anymore by chkuendig on Wednesday October 28, 2015 @08:41AM (#10464049)

I know from first-hand experience that this isn't the case.

Obviously T&M is the preferred contract structure for the service provider, but many projects get done on different metrics (fix-price, result-based, T&M with upper/lower bound etc.). It's quite a competitive industry, so a big client can negotiate for a different contract structure if the project allows it (obv. not for bodylease stuff).

Also, your assumption about labour-cost arbitrage isn't completely true. Many external consultants (incl. developers) make better salaries than internal staff.

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