Jharna Software- Case Assignment 1
Xinqi Gao
Komal Suresh
Han Gao
Akshay Ahuja
Viraaj Shah
Team B
1. Describe the current state of IT offshoring industry (in 2016) and compare it to 2006 when
the case was written. (maximum 1 page)
Looking at the case, in 2006 the countries that provided offshore services were largely
categorised into 4 main categories. The categories being:-
1. Large capacity of highly educated workers and a low wage scale (India and China)
2. With special language skills (Philippines)
3. Advantage of geographic proximity, aka, nearsourcing (Canada, Czech Republic)
4. Special high-end skills (Israel)
Moving forward and looking at the industry in 2016 we can see the following trends:-
Companies will look to leverage the experience they have gained during process maturity as a
result of working with outsourced offshore teams and will, as a result set up their own shops.
The objective of this approach will be to reduce costs by taking away the provider’s margin,
as well as increase flexibility by removing contractual constraints. Companies are likely to
get smarter about insourcing in general, rather than insourcing as a knee-jerk reaction to a bad
outsourcing relationship and repeating past mistakes, clients will benefit from lessons learned
and be smarter about what and how they repatriate.
Enterprises are looking for highly skilled teams that are able to work in the Agile framework
as an extension of their own development teams. The shift away from cheap contracts is
expected to continue and trending towards employees that can easily integrate into already
