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ClandPhoenix (80.21)

Outsourcing software development is stupid. Now where can I buy some software outsourcing stocks?

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February 19, 2013 – Comments (0) | RELATED TICKERS: VRTU

Someday the business decision makers will pull their heads out of their a** and figure out that cheap now does not always (hardly ever) mean cost effective. I know how they think and I know how software development works. I have a double major in Business Administration and Computer Information Systems. I spent a few years working in middle management, a couple in accounting and am now a software developer. What this has taught me is that there is this pseudoscience (often with many and varying interpretations) out there generally referred to as business math that is treated as a hard science. If I spend X today with an anticipated return of Y per time variable I will have a return on investment of G.

That is nice but if you spend X today to produce a product that does not do what you need it to do to produce Y then time becomes pointless and return is nil. This is where the business minds fail the software industry. They assume Y and short change X.

Do I think Virtusa Corp is producing a valuable product? Not in the least. Do I think businesses thought processes will result in companies continuing to flock to cheaper software production costs without considering all of the variables involved so that they can reduce X as X inflates over the coming years due to worker skill sets not keeping up with software development demand? Absolutely.

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