Software is now so critical to international business that it can no longer be considered a supporting or enabling technology but rather an inherent part of company strategy. Service providers must excel at understanding the subtleties of the customer's business, domain, IT ecosystem, and technology. The customer must be willing to engage with their service providers for a longer period of time and with a vision to see them as strategic partners.
Subcontracting is a tactical approach, but over-dependence on subcontractors poses some business risk, especially if the subcontractors are from smaller entities that cannot swiftly move to newer technologies. Subcontracting may still prevail for some time; however, clients must fully understand the risks involved and therefore mitigate the risks as early as possible. There should also be an attempt to maintain a ratio of subcontractors to the in-house IT staff within manageable proportions and gradually replace subcontractors with more...