Outsourcing software development can provide several significant benefits. Unfortunately, it offers just as many ways to get burned. Is there a better model?
At its best, development outsourcing helps companies save money, complete projects faster, manage large one-off projects more effectively, and get access to hard-to-find talent.
Why? The software outsourcing business model is designed to generate profit for stakeholders for each engineering resource or project fulfilled by engineering resources.
But this “humans as a commodity” business model generates uncertainty for low-paid software engineers. It causes high turnover rates and low-quality work (often swapping a senior-level resource for a junior one who has no idea of object-oriented programming or good code structure) and lack of project commitment. Feeling underpaid doesn’t motivate anyone to do a great job.