IT Outsourcing came to foray as a means for corporations to focus on critical business operations while having a specialized IT company take over the responsibility of managing the IT infrastructure and application development. For corporations especially in the developed countries, IT outsourcing provided two fold advantages, one was access to a highly talented pool of engineers and that too at a lower cost since countries like India were quickly growing their stature as an IT outsourcing hub.

IT Outsourcing is now as mainstream as ever and almost every leading organization outsources some or all parts of its IT infrastructure to a specialized company. It makes pure business sense and with tightening budget controls, IT outsourcing has become one of the strategic cost reduction driver for most organizations. Moreover, IT outsourcing is no more restricted to companies in USA & Europe outsourcing their IT projects to countries like India. Domestic companies within India itself actively use IT outsourcing including the Indian government like the India Post project given to TCS.

Is it then a no brainer that IT Outsourcing is critical to your business? Well, if it is cheaper and does not seem to have any inherent disadvantages why not!! Not really, IT Outsourcing despite proven benefits has its limitations and you should be cognizant be of the same before considering outsourcing your IT operations.

·         Limitations in estimating the actual cost of IT outsourcing:Let’s tackle the biggest driver of IT Outsourcing-Cost Savings. For anyone to estimate the cost savings from IT Outsourcing one needs to be able to predict the cost of outsourcing which then helps understand the cost savings from the same. Yes, at a higher level it is a matter of a simple $ per man-hour costs and IT outsourcing will appear to be cheaper in almost all cases. However, “hidden costs” are commonplace with IT outsourcing and it can be immensely difficult to accurately predict these hidden costs. For example, you need to be able to identify the costs of transitioning your in-house IT to an outsourcer, management overhead needed to manage the outsourcing relationship etc. In addition, IT outsourcing contracts are fixed at the start of the contract and as a result any additional requirement/change tends to be charged additionally. It is no surprise that IT requirements can change frequently and if your outsourcing contract doesn’t account for flexibility, you might be limited in the actual cost savings you might make. There is no surprise that there have been so many instances of IT outsourcing projects overshooting their budgets by a huge margin such as the one government shared services project going 500 million pounds over budget

No industry is as global as software development.  Pervasive networking means that software developers can, and do, work from anywhere. This has led many businesses to hiring development subcontractors in other countries, aiming to find good development talent at lower prices, or with fewer hassles on entry into the US.

While this is an ongoing and dynamic equilibrium, there are compelling reasons for doing software development in the United States, or using a hybrid model where some parts of the task are parceled out to foreign contractors and some are handled locally.

Development Methodologies

The primary reason for developing software overseas is cost reduction. The primary argument against overseas software development is slower development cycles. When software still used the "waterfall" industrial process for project management (where everything is budgeted in terms of time at the beginning of the project), offshoring was quite compelling. As more companies emulate Google and Facebook's process of "release early, update often, and refine from user feedback," an increasing premium has been put on software teams that are small enough to be agile (indeed, the development process is called Agile Development), and centralized enough, in terms of time zones, that collaborators can work together. This has made both Google and Facebook leaders in US-based software development, though they both still maintain teams of developers in other countries tasked with specific projects.

Localization For Americans

The United States is still one of the major markets for software development, and projects aimed at American customers needs to meet cultural norms. This applies to any country, not just the U.S. This puts a premium on software developers who aren't just fluent in English, but native speakers, and who understand American culture. While it's possible (and even likely) to make server-side software, and management utilities that can get by with terse, fractured English, anything that's enterprise-facing or consumer-facing requires more work on polish and presentation than is practical using outsourced developers. There is a reason why the leaders in software User Interface development are all US-based companies, and that's because consumer-focused design is still an overwhelming US advantage.

Ongoing Concerns

The primary concern for American software development is talent production. The US secondary education system produces a much smaller percentage of students with a solid math and engineering background, and while US universities lead the world in their computer science and engineering curricula, slightly under half of all of those graduates are from foreign countries, because American students don't take the course loads needed to succeed in them. Software development companies in the United States are deeply concerned about getting enough engineers and programmers out of the US university system. Some, such as Google, are trying to get programmers hooked on logical problem solving at a young age, with the Summer of Code programs. Others, like Microsoft, offer scholarships for computer science degrees.

Overall, the changes in project management methodologies mean that the US is the current leader in software development, and so long as the primary market for software remains English and American-centric, that's going to remain true. That trend is far from guaranteed, and in the world of software, things can change quickly.

Python is an incredibly powerful and useful computer programming language that many of the biggest websites in the world rely on for their foundation. Python provides reliable results that are functional and involve a variety of dynamic scripted and non-scripted contexts. And because it is free and open source, it has remained a popular choice for a variety of different developers who are looking to build new sites on one of the most reliable languages available. Here is a look at 10 of the most famous software programs that are written in Python and what they do.

YouTube
If you love watching hours of homemade and professional quality video clips on YouTube, you can thank Python for giving you that option. The foundation for Python helped YouTube integrate streaming videos into their pages, as well as the ability to like videos and embed certain information. YouTube is one of the most popular sites on the Internet, and it runs off of one of the most powerful languages in Python.

DropBox
What started as a powerful app, DropBox is now used by a variety of individuals, businesses, companies, organizations and more. This program lets you save files to a cloud-based service, that you can then access from anywhere in the world. With Python at the root of DropBox, there is no longer a need for USB sticks or blank CDs, since you can now save and share everything with your cloud-based account.

Google
It takes a lot of power to be able to handle the most popular search engine in the entire world. That is why Google uses Python for its mainframe foundation, as well as in addition to various apps that it runs in conjunction with the main site. The ease that Google provides for finding certain information, would be impossible without Python at the core.

Quora
Got a question? Ask it on Quora. This site compiles a list of questions and answers that come from a community of individuals. Those questions are then organized by various members of the community, which puts the most relevant information at the top. The creators of Quora, who happened to be former Facebook employees, decided to use Python to help them create the world’s best Magic 8 ball in Quora.

Instagram
If you love taking photos of your food or a new outfit and posting it online for all of your friends to see, you can thank Python for that ability. Granted, Instagram has both a very powerful app and a website, but the latter runs on Python language. The system allows for users to browse, find and post pictures that they like on the site.

BitTorrent
BitTorrent has evolved quite a bit in recent years, but its foundation and earlier years were built on Python. When it comes to one of the largest databases of knowledge, media and content, BitTorrent is the way to go. But you wouldn’t be able to get any of those lectures or other legal stuff that you are downloading from BitTorrent, if it wasn’t for Python.

Spotify
Spotify changed the music game when it allowed you to listen to ad-free music of your choice. This wasn’t a program where you got to select a playlist, but rather full songs that you love, on repeat as many times as you can imagine, if you so desire. But whether you are rocking out to the latest K-Pop song from Psy or a classic jazz tune, you are doing so because Spotify was built on Python.

Reddit
Reddit is one of the biggest open communities on the web. You have a question, want to talk about something in specific, or find tons of information regarding a particular topic, you can just look on Reddit. The site relies on Python to help them store user names, categorize subreddits, upload links to GIFs and, of course, award gold to valued posters.

Yahoo Maps
Much like Google, Yahoo also uses Python for a variety of different resources. Most valued may be Yahoo Maps. The API and programming behind the maps program, which is built with Python, allows for users to find locations, get directions and even find reviews about local places.

Hipmunk
If you love to travel, you have likely come across Hipmunk. And while the site lets you save money on booking your itinerary through Hipmunk, it is Python that keeps everything organized. Python also helps sort the best discounts and rates, so you can get the best packages available.

Python is an incredibly powerful tool for web development. More and more sites rely on it, including 10 of the most powerful sites in the world that are listed here.

Related:

Current Active List of Organizations that use Python 

Working With Lists In Python