Establishing Offshore Software Development Ecosystem

Today’s organizations are forced to focus on not just the technology development but effective
management of these developments. Increasing financial orientation has made offshore software
development an integral part of today’s technology strategy and technology portfolio of many
organizations. Historically, offshore component has started as purely cost arbitrage, today it has evolved
into strategic component where some of the organizations are using it as 24×7 round the clock software
life cycle for faster time to market. Offshoring of research and critical component design are few
examples that points to this fact. Specifically in investment management field, organizations have
offshored financial research and information technology components. This paper will focus on the topic
of software development outsourcing to offshore locations and points to consider for establishing
ecosystem needed for successful offshore development projects.
Successful ecosystem takes time to be established and there is no silver bullet that will establish one size
fits all organizations model. It has to be adopted based on the circumstances and culture of an
organization but there are certain basic elements that need to be in place for a successful ecosystem.
Examples of some of these critical elements are: Vendor Selection, Vendor Management, Pricing Model
and Scope Management.

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