Open Source with Offshoring a Compelling Cost Formula

by Noc Team on June 30, 2010

Contributed By Sayed Osama Naseem

IT executives are always under pressure to deliver more for less, with the top management demanding more value for IT U.S. dollar spent. It is therefore more and more of them are looking at open source items. Some of them are also looking at outsourcing of open source development process to Foreign Service suppliers.

Add use of offshore development in the mix, labor and maintenance costs can be reduced by around another 30 to 35 percent. The Standish Group research indicates that offshore development has experienced a short recession, but is again being embraced. Offshoring is a growing trend, at about 13 percent of all software development and maintenance activity. Standish research shows that offshoring hotline application support is also a growing trend that took up 13 percent of the activity in 2005 and in 2006, it increased to 18 percent.

Given the attractiveness of both open source and offshoring for speed and reduced costs of development, it is easy to see how the marriage between the two could be very persuasive.

Made in Heaven Companies seeking to deliver new business applications and benefits of Open Source now has a choice: either hire a development team and provide training with the hope of one day in the near future they will be ready to deliver an application or find an experienced outsourced development team to work with and get the project done. It’s not just about saving money; it’s about reaching out to the market. It’s about insuring that managers remain leaders that “me Toos” can compete and that new businesses can make access to new markets.

This marriage works and it works for businesses today. “We have helped many organizations by taking an open source framework and plan using our remote workforce to create world-class enterprise systems leverage this framework,” said Fima Katz, president of Concord, Calif.-based Exadel Exadel Inc. offers customers a global development model and open source expertise, code, located in an Eastern European country.

Certainly, when salaries, bonuses, benefits, real estate, and education are included in the equation, most businesses find savings by outsourcing to be significant. Indeed, in some cases are so convincing that the organization will choose to start their own offshore facilities. WebEx has more than 800 software engineers in China. It started with just sending over the detailed specifications, and now more and more of the specification work carried out offshore.

Despite the issues, the company is still a very high opinion of open source tools and claim that you are using the program saved about 50 percent of its software workforce in recent years. This was an important saving for a start into battle with such as IBM, HP and Sun. The company plans to use outsourcing more because of its technological needs are broader and better defined, but it is still leaning heavily on open source.

Other benefits which Standish has found open source products is equal to their commercial counterparts in terms of reliability, quality of code and susceptibility to viruses / worms and denial of service attacks. Of course there are some sellers that stand out on both sides of the fence. If you look at Red Hat Linux compared to Microsoft Server, Standish Group research, open source solution is a strong effort where 25 percent of IT managers believe they are more reliable, versus 14 percent who chose Microsoft Server for its reliability. Twenty percent also believe that open source product has a higher quality of code and 72 percent think it is less prone to virus / worm and DoS attacks. Apache is by far the best when there is the MS-IIS, with 32 percent consider it to be more reliable, compared with 16 percent for Microsoft products. Twenty percent thought it to be of a higher quality of code and 53 percent claimed it was less prone to attacks.

The average organization has a stated goal to optimize their IT infrastructure and construction costs through a 6 per cent reduction per year. For this purpose, open source, outsourcing can provide a viable and cost-effective solution for creating and delivering applications that provide a quality business solution at an attractive cost and delivery time. It is worth remembering, however, the use of offshore development is not a simple panacea. You must contract with an experienced company with the necessary skills, or build your own. IT must provide the exact requirement to be effective, unclear requirements, and sometimes the translation, can and will cause hiccups. Ensure that a strong communication link is established from the get-go is crucial for success.

About The Author

Sayed Osama Naseem is also professional SEO Analyst and Internet Marketing Expert. He is a social media analyst, and an IT consultant. He has been writing from the past one year. He was also the Executive member of Event Management Society of Punjab University College of Information Technology.

{ 9 comments… read them below or add one }

Sara July 2, 2010 at 4:19 AM

its a nice Article i have ever read about this topic. keep it up Mr Osama.

Muhammad Yasir Mumtaz July 2, 2010 at 4:26 AM

Nice to see Sayed Osma Naseem here :)
Gud work man keep it up.

Muhammad Kashif Majeed July 2, 2010 at 10:36 AM

Actually Open source software is often more secure and less buggy then the closed source versions.
If you are a user and a developer you can implement features that you need and share them with others. Overall good article . Thumbs Up ^^

Ahmad Hashmi July 2, 2010 at 10:18 PM

It is really well written. Thanks for sharing. Nice effort…….

Anam Javaid July 3, 2010 at 5:41 AM

Its a good attempt osama.
And we, the IT professionals really need such kind of appriciation.
Hope we’ll c more articles 4rm ur side in future :)

Waleed Mirza July 8, 2010 at 3:54 AM

great work Osama! thumbs up!

Jahanzeb July 8, 2010 at 8:53 AM

Its a great effort. . .very nice. . .keep it up!!!

Ahmad Shahwaiz July 9, 2010 at 3:40 AM

well its a very great effort :-)
and yea nice article
but bat ye hy k chapa kahan sy mara hy? :P
haha anyway well done :-)

Nida Ali July 9, 2010 at 10:59 AM

Usually open source have no warranty but still they very well tested by development groups. Open source software can be helpful in reduce costs, but only a limited number of products.
Overall article is written very well.
Thanks.

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