Tuesday, October 13, 2009

My way or the Indian Highway

A recent discussion prompted me to contemplate about whether we should be worried about all of the out sourcing that is being done in our industry. We believed we have not had to worry about this to much because our UniBasic knowledge is not easily transferred because of the vast differences in architecture, language, programming styles, and the lack of modern tools. If outsourcing companies are offering anywhere from 10 to 30 per hour for programming services we should be worried about our livelihood.

Then again from a recent article about developers using the Salesforce.com platform called Force.com. In that article it stated that developers are 4.9 times faster at building Web applications then conventional .Net and Java methods.

If we, using our latest tool set from U2logic called XLr8 or Rocket Software’s U2 tools, can build Web applications 4.9 times faster we can compete. We know we can.

We have built Accounting, Alpaca Herd Management, CRM, Distribution, Document Management, Payroll, Transportation (Broker, Food Service, and Moving and Storage), and Warehousing that are all Web based and run multi-tenant. We did do it.

Let’s do the math. For example, the outsourcer is getting 20/hour. We can charge 4.0 times or 80/hour, if we are more efficient or nearly 100/hour if hit the average. Now with our business process knowledge, our 20 plus years of expertise in the MV world, and other accumulated skills, we can get our chargeable hourly wage justifiably so.

There have been companies such as Nucor in the steel industry that figured out how to compete against cheaper rivals. We can too.

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