Software Development Managers Forum - Offshore Challenges

Daily-Maily, Issue 4348, Tuesday, December 5, 2006
Editor-in-Chief: Pely Hanmer	Senior Editor: Yehuda Konfortes	Editor: Or Yaakov	Assistant Editor: Yochal Ben Tov

Software Development Managers Forum - The Benefits and Challenges of Offshore Development
Featured Speaker Ignite CEO Aviram Eisenberg shares tips for success.

By Yossi Hatvani

Is offshore development a viable solution to shortages of qualified software development personnel?
Fifty of Israel’s top software development managers gathered at Tel Aviv’s Recital Auditorium on December 4th to explore this and other questions posed by the growing popularity of offshore software development.

Speakers for the event included Ignite CEO Aviram Eisenberg. Eisenberg, a member of the organization’s Steering Committee, shared lessons learned from years of experience including his successful management of the establishment an offshore branch in Romania during his tenure at MIND CTI.

Eisenberg explained the importance of taking into account both the direct (i.e. salaries) and the indirect costs of offshore development. Of such indirect costs as rent, equipment, management and programming licenses, says Eisenberg, “The smaller the outsourcing activity, the higher the associated costs”.

According to Eisenberg, companies can minimize their risks if they carefully consider these important questions: Which region and country offers the best opportunity for offshore development of their products? Would it be best to establish the branch in a centralized location, close to an international airport, or a smaller city where costs are lower? How many hi-tech companies are located in the city? How much is corruption a factor in local governance? How will the teams be structured? What is the best way to bridge cultural differences and streamline communication between the onsite teams and the offshore teams? He also suggested a number of ways to retain workers including offering professional development programs, creating an ambassador exchange program in which onsite employees frequently visit the offshore location and vice versa, and offering employees loans that eventually become grants.