IT outsourcing (ITO) is not software development outsourcing. Instead, ITO is a much broader range of job functions that includes: help desk, network operation, database administration, application maintenance, cloud enablement, telecom services, desktop support, disaster recovery services, and IT security.
These are IT roles that often require on-site execution by technically skilled employees. American companies are tempted to cut costs by “outsourcing” these jobs. But filling these jobs on site with people working for an offshore company emphasizes the use of the offshore company only as a recruiting service rather than responsibly delivering the actual technical service itself. There is no increase in productivity, and often less, when taking this approach. It’s simply a way to cut labor costs.
Unless you’re in a tech hotbed like the Silicon Valley, Austin, Texas or others, the best developers just aren’t interested in relocating. It’s easier to get a qualified developer to move from India to anywhere in North America, than to get qualified U.S. developers to move to an American city that’s anywhere but the hottest tech centers. Can immigration and H-1B visas fill the talent gap? The vast majority of outsourced DevOps is not about importing individual engineers. High quality and successful custom software outsourcing is done with an expert team of developers and DevOps engineers who stay in their home country.
Expert DevOps requires a much higher degree of communication, creativity and collaboration work than IT outsourcing. Good software outsourcing companies take full responsibility for the design and delivery of your software. Of course, recruiting is a key element of success but not to just hire developers and software engineers to work at your company. The best software outsourcing companies recruit developers and engineers to work for you at their location and also provide ongoing training and a work environment that fosters innovation. Real software development outsourcing means hiring a company to deliver a complete service better than you can do it yourself with your own employees and individual contractors.