I remember the day like it was yesterday. Pac Man had finally arrived on the Atari 2600.  It was a clear and sunny day, but it was slightly brisk. My dad drove us down to the video store about three miles from our Michigan house. If I remember correctly, the price for the game was $24.99.  It was quite expensive for the day, probably equaling a $70 game in today’s market, but it was mine. There *was* no question about it. If you purchase a game, it’s your game… right?

You couldn’t be more wrong.  With all the licensing agreements in games today, you only purchase the right to play it. You don’t actually “own” the game. 

Today, game designers want total control over the money that comes in for a game. They add in clauses that keep the game from being resold, rented, borrowed, copied, etc. All of the content in the game, including the items you find that are specifically for you, are owned by the software developer. Why, you ask, do they do this? It’s all about the money.

This need for greed started years ago, when people started modifying current games on the market. One of the first games like this was Doom. There were so many third part mods made, but because of licensing agreement, none of these versions were available for resale. The end user, or you, had to purchase Doom before they could even install the mod.  None of these “modders” were allowed to make any money off their creation.

How Can Managers Work More Efficiently with IT?

Would you rather work under someone who is an excellent developer but lacks people skills or leadership capabilities - or for someone that has excellent people skills, communicates well, and is a great leader but has limited understanding of productive coding practices? That’s not to say that the choice is one or the other but in many professional situations it does.

Managing an IT staff comes with numerous challenges, especially if the manager has no previous experience with the coding necessary for completing the project. Managing a business and IT's execution of tasks vary greatly in required skill sets, but it's important to find a cohesive and cooperative middle ground in order to see a project to its end. To fully grasp the intricacies of IT's involvement in the project at hand, managers can do the following to help further their efforts.

Get a basic understanding of coding and technical practices necessary for the project at hand by taking the time to research and practice enough to get a grip on the concept. This will allow managers insight on what their IT folks are really working on daily. Expertise in a programming language is not required, only an overview of the stuff that matters, i.e. understanding the concept of OOP (Object Oriented Programming.) Having this knowledge cannot be overlooked and will gain respect among multiple spectrums in the organization.

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.

Outsourcing IT needs in the corporate world has become extremely popular because it is cost-efficient and it gives IT resources to companies that may not otherwise be able to afford them. Another positive side effect of IT outsourcing is that it has brought many technology jobs back to the United States.

As convenient and patriotic as IT outsourcing has become, it also have several limitations that have caused many companies to re-think the idea of funding their own internal IT group. It is important for a company to be completely familiar with these limitations before developing any kind of company policy in regards to IT.

The Customer Could Outgrow The Outsource Company

When an IT outsourcing company first takes on a new client, the relationship is beneficial to both sides. But things can start to get inconvenient for the client when the client's business starts to outgrow the capabilities of the IT outsource group.

An IT outsourcing company can become entrenched in the daily routine of its clients, which is great at first. But when the IT company can no longer keep pace with the growth of its clients, then the clients are stuck trying to find a new solution and keep track of its own IT assets at the same time.

The IT Outsourcing Company Lacks The Necessary Technical Expertise

IT outsourcing clients like to believe that their support company knows everything there is to know about computers and the Internet. But every IT support company has its areas of expertise and they have the technical areas where they are not quite as strong. If the client starts to experience needs from the areas where the IT outsourcing company is not so strong, then that can become a significant business issue.

This problem can be amplified if the client is a small business experiencing growth. An IT outsourcing company is not as likely to bring on new personnel for a smaller client, which leaves the client without a solution.

The Client Losses A Measure Of Control Over Its Data

No matter how large or successful an IT outsourcing company may be, there will always be the limitation of client security and the protection of critical customer data. All it takes is one rogue employee of the IT outsourcing company to compromise all of the client's critical data.

Some IT outsourcing companies have safeguards put in place to try and prevent client data compromise, but those safeguards are limited by how much access the IT company has to the client network. In most cases, that access has to be comprehensive for the IT outsourcing company to be able to do its job.

Outsourcing IT responsibilities can take a lot of stress off of a client and allow that client to operate his business by focusing on his core competencies. But there are limitations to IT outsourcing that could make it necessary for a client to do his own IT support and pay the extra costs.