Past few years has brought a predictable backlash against Offshore Outsourcing, with tales of soured relationships and early contract terminations. To begin with there was too high expectations. The people haven't been disappointed, who went with realistic expectations of 20% to 25% savings because next round of growth will be more sustainable. Indian firms, in particular, are offering increasingly sophisticated services; the reality is that Offshore Outsourcing is a long-term growth business, the new approach in Offshore Outsourcing will be open-beta development with community participation and frequent new releases essentially, use of software after being developed. The Software development trends is a convergence of trends epitomized by Google and the amazing speed at which it delivers new features will cause vendors and organizations to change the way they develop software by Offshore Outsourcing.
The change in commercial Software Development is because of trend and code reusability. Vendors don't leverage these tactics will become irrelevant but that's a good thing. The demand of commercial software by users will take on a more service-oriented approach so they can mix-match. As a result, the industry will begin to shed its not-invented-here bias and truly reform its Offshore Outsourcing approach and it will cause shifts in the cost structure of the business and eventually to change in the power structure.
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