Tuesday, 23 April 2019 16:46

India Isn't Your Only Option for Outsourcing Software Development (any more)

By Mitrais

STORY SPONSORED BY MITRAIS. In the early 2000s, outsourcing became a significant buzzword in software development globally. Every week we seemed to read that one significant player, or another had decided to experiment with the idea of adopting a remote development team in some (often far-flung) location.

Initially the idea was a purely economic one. India had been ramping up for just this eventuality for years, and aggressively grooming its burgeoning army of IT graduates to become the development teams for global organisations everywhere. India’s combination of a steadily upgraded education system and infrastructure to match, coupled with its cost of living advantages seemed to promise a silver bullet for improving productivity whist at the same time containing costs.

And it worked – maybe a bit too well. Over time, two major issues with this “panacea” started to become apparent. The first was probably not entirely Indian vendors’ fault. In their excitement to adopt outsourcing as a concept, many firms elected to entirely disband their onshore development teams and replace them completely to maximise the short-term savings. Although maybe not evident initially, the inevitable consequence over time was a serious dilution of onshore technical skills within these organisations, and in some cases a loss of control of Intellectual Property. There are plenty of examples where ANZ companies took years to recover and rebuild from this type of dilution.

The other was a classic case of being a victim of your own success. With rapidly rising demand for Indian developers globally, it was only a matter of time before those developers started to get a sense of their own financial worth. This led to wide-spread demands for increased salaries and improved (and more expensive) employment benefits, and many relocating to other countries to pursue better conditions. Competition between providers for the best developers within India built steadily, and the price advantage that had been a cornerstone of the strategy was gradually eroded.

Now there is a two-speed software development vendor market in India – larger, well-established and well-funded providers offer technical skill and prowess but are no longer the budget solutions that they once were. On the other side, there are plenty of bargain basement offerings from India, but also a lot of horror stories from ANZ clients who have been burnt with them (not restricted to India of course).

Fortunately for Australian and New Zealand organisations, there is another alternative. As one of Australia’s closest neighbours, Indonesia is home to an extraordinary number of highly qualified software engineers ready to become members of your team. While not as high-profile as India, Indonesia offers many advantages for those looking to augment their development team with near-shore developers. According to the prestigious AT Kearney Global Services Location Index in 2017, Indonesia rates as 4th in the world in terms of financial attractiveness, people skills and availability, and business environment – above many others like the Philippines, Vietnam and Thailand.  

The Indonesian island of Bali is home base for the Development HQ of Mitrais. Providing software developers to Australasian partners since 2000, Mitrais has an enviable reputation in the region. In 2014, Forrester Research rated Mitrais as one of Indonesia’s leading offshore service providers, and we have delivered well over 500 projects. Bali’s time-zone (the same as Perth’s) takes away the pain that can be a part of running a distributed team. With at least 5 hours overlap with Australia every business day, your Mitrais team works when you do.  

With a unique combination of Australian and Indonesian management, Mitrais offers close cultural alignment with Australasian companies, and the cost of living advantages of Indonesia. Mitrais has more than 400 software engineers and other technical staff, making us big enough to service large ASX-listed name brand partners, but small enough to closely engage right down to SMEs and start-ups. Our recognised commitment to our clients has resulted in a very high degree of repeat business – 73% of our client relationships are longer than 3 years, with some stretching back much longer.

If you are thinking about engaging with a real long-term partner rather than just a quick “body shop” arrangement, it pays to consider Mitrais in Indonesia as a real alternative to other regions you may be considering.

Visit our site www.mitrais.com to review our extensive offering and to book a personalised introduction and conference call so we can present our business model personally.  At that time we can send you a comprehensive proposal.

About Mitrais
Mitrais is a world-class software development company with offices in Indonesia, Vietnam, and Singapore. We offer exceptional value, competitively priced, near shore, near time software development. In business since 1991 we have written software or installed systems for over 500 clients. Our clients are referenceable with over 70% of engagements lasting more than 3 years, some much longer. Our proprietary competency system guarantees the quality of our staff.

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