1. Programming Market in U.S. vs. Offshore Courtney Stephens IS 553 Term Paper

2. Outlines What is offshore outsourcing? History How Offshore Works Benefit of Offshore outsourcing Issues with Offshore Outsourcing When to use and when to avoid Successful Implementation factors Key Players Marketplace Analysis

3. What is offshore outsourcing? Refers to services that are performed and delivered from Centers in countries which are remote from the clients location. Investor set up operation overseas for product development, design, software development, and research and development of projects.

4. History The first wave started two decades ago with the exodus of jobs making shoes Cheap electronics to developing countries Toys to developing countries Simple service work, like processing credit-card receipts, and mind-numbering digital toil Writing Software code, began fleeing high-cost countries Information technology jobs for most part moving offshore to countries like India and China, because of cheaper labor.

5. How Offshore Works U.S. Ambassadors – Facilitate communication by sending U.S. Developer and U.S. analyst to offshore centers and to communicate system requirements and technical issues. Offshore Ambassador - Send Offshore Developer/Analyst to U.S. Team to get better understanding of systems requirements Using Test scripts from customer to help understand requirements Growing the business by having someone local to the developer offshore that understands business requirement

6. Benefit of Offshore outsourcing Jobs going offshore to save on cost Utilize the skills and talents of the R&D and programmers that can found in these offshore countries. The area of studies and the level of the education and area of studies seems to be in demand, so companies that does product development and sees the need to invest in offshore Access to resources that save cost, availability of talents, skill, and quality Project get completed fast and at low cost

7. Issues with Offshore Outsourcing It locks face-to-face communication Need constant monitoring Costly if requirement are not fully understand Rely on rapid feedback from client It is plan driven so detail and requirement of system need to be fully understood at the offshore center Security system and policies that are place to prevent theft and piracy

8. When to use and when to avoid Understand the system development process Check for compatible to see if it meet the system requirement of the customer Check for talented developer, skills, and quality of work If project require a lot of on-site interaction If security is going to be risk Research offshore center for integrity

9. Successful Implementation Factors Inception Phase –The project managers need to take into consideration the nature of the business – The U.S. Business Analysts need to meet with the Business group –Find out system requirements –Understand the scope of the business, –Know the nature of the business, what it supports, and goal/future plan. Elaboration Phase –Prevent some of the major technical risks –Put in place a system or process to understand what it takes to be a successful offshore center. –Developing a demonstration version of the intended system to see how it work in respect to customers requirement –The adoptability of Software developed –Can it be easily integrated with other software application –Perform load test on the system Construction Phase –Built a proto-type or an executable programmer of the system that is going to be implemented. –Develop system to measure up to policies and system guidelines –Develop credibility and rapport between site locations –Drive for smooth transition when system is ready for implementing Transition Phase –The project is ready to be delivered to the customer. –All system requirement need to be in placed per customer request –Check functionality of the system, system performance, quality, and standard of system. –Test in its operational environment with different level of users

10. Key Players Companies/Investors IMB Bank Of America Andale Inc. Oracle Cisco System Intel. General Electric Jboss Inc Countries U.S. India China Philippines South Korea Taiwan Resources Engineers System Analysts Software Developer Project Managers Business Analysts

11. Bank of America has slashed 3,700 of its 25,000 tech and back-office jobs. An additional 1,000 will go by March Jobs that costs $100 an hour in the U.S. gets done for $20 in India 3.3 million white-collar jobs and $136 billion in wages will shift from the U.S. to low-cost countries by 2015 40% of America’s top 1,000 companies will at least have an overseas pilot project under way within two years Marketplace Analysis

12. More Information http://www.businessweek.com/magazine/content/03_49/b3 861010_mz001.htm http://www.businessweek.com/magazine/content/03_49/b3 861010_mz001.htm http://www.businessweek.com/magazine/content/04_20/b3 883090_mz063.htm http://www.businessweek.com/magazine/content/04_20/b3 883090_mz063.htm http://www.businessweek.com/magazine/content/03_05/b3 818001.htm http://www.businessweek.com/magazine/content/03_05/b3 818001.htm http://www.businessweek.com/magazine/content/03_49/b3 861011_mz001.htm http://www.businessweek.com/magazine/content/03_49/b3 861011_mz001.htm http://www.martinfowler.com/articles/agileOffshore.html http://www.businessweek.com/magazine/content/04_02/b 3865028.htmhttp://www.businessweek.com/magazine/content/04_02/b 3865028.htm

13. Questions?