MEMBER POST: 5 Reason To Bring Development Onshore
Research suggests, “50% of offshore outsourcing contracts signed by North American companies fail to meet their expectations.” And unsurprisingly, poor software quality is a leading cause of frustration.
While there are steller companies across the globe, the quality and experience of American providers are unmatched. According to a study by the National Academy of Sciences, the average American CS student is far more knowledgeable and skilled than many foreign peers.
Differences in culture are easy to overlook, but play a vital role in the success of any development project. For example, while it may seem trivial, American companies know it would be a bad idea to set a deadline around Thanksgiving or Christmas. However, a December 25th deadline in India wouldn’t be an issue as Christmas isn't a major holiday in the predominantly Hindu country.
Culture can also impact communication etiquette. “Americans are very direct in their communication styles. They tend to be blunt, persuasive, and highly aggressive when they are pursuing a business deal. They want to have the upper hand in every negotiation. This is a part of American work culture, and it works well here. It doesn’t work as well in Chinese work culture. In fact, if you’re too direct with Chinese businessmen, you will likely cause them to shut down and withdraw from negotiations altogether.
The Chinese prefer to be polite and courteous, showing deference to their business contacts and respecting them.“
The Global Innovation Policy Center says American’s “deep respect for innovative and creative work” helped our nation become great. Our honesty toward IP has allowed countless American companies to grow and dominate global markets - think Apple, Microsoft, and Google. But unfortunately, not all countries have the same level of respect, and some will brazenly steal patents, copyrights and trade secrets for themselves.
China has become notorious for its mishandling of foreign IP. According to the Commission on the Theft of American Intellectual Property, "China’s intellectual property theft costs the US economy between $225 billion to $600 billion annually."
Once hampered by unending job loss, middle America is in the midst of a renaissance. In recent years, investors from Silicon Valley and beyond have started to flood the region with an influx of cash, and it’s already paying off. Michigan’s Duo Security and Ohio’s CoverMyMeds are two textbook success stories. In 2017, both companies made national headlines for becoming the first tech unicorns in their respective states.
Specializing in medical software, CoverMyMeds was purchased by McKesson for $1.1 billion in January 2017. Duo Security reached a valuation of $1.7 billion later that year and was eventually bought by Cisco in 2018 for a whopping $2.35 billion.
Investment in middle American brings relevant, highly paying opportunities to the region. Both CoverMyMeds and Duo Security employee hundreds of skilled workers that would otherwise be limited in their career options, or forced to move.
Working with an onshore provider has a similar impact on its local community.
COMMUNICATION / TRAVEL
Email, web conference and instant messaging are essential tools, but nothing beats face-to-face meetings when it comes to communication. Regardless of your location, you can fly to most cities within the continental US in just a few hours. In contrast, it takes 18 hours to get from San Francisco to New Delhi, India, and 15 hours from New York to Beijing, China.
If you’re interested in learning more about Techtonic, please CONTACT US today! Techtonic is the premier partner for developing onshore, product-driven software. We’ve also developed a unique method to simultaneously close the talent gap that exists within technology, by tapping into a new and highly diverse workforce. Our model is pioneering the way clients develop and hire top talent, and we’d love to work with you!
AUTHOR - Nate Aswege