Bangalore for Sure

2005:

Bush finally gets his senses back in his second period and eased up on the “terrorists” to focus more on the economy. Economy grew stronger and got more stabile. Companies were willing to invest again. The EU regulation for patentability has been disproved. This issue was like turning up the temperature in the penguin’s environment and was expected to increase monopolization of the big 3 and the negative effect on the innovation process. The EU instead made regulations more flexible regarding restrictions because if the convincing counter-arguments. The market starts to grow again and companies started to look for new but safe opportunities. Off shoring was seen as a non-risk economical aspect that increases a company’s flexibility. While the home-supply market for qualified programmers stagnated, especially small and medium sized software houses started to see off shoring (off shore outsourcing) as a alternative. Off shoring started to attract attention because it was seen as a service primarily done due to low wages, good quality, fast delivery and lots of recourses. Off shoring increased the flexibility of companies in case of economic set-back.

2006:

Gates launches Longhorn which was a success (as expected) for her desktop market. Microsoft dominated the application market and integrates a state of the art, more efficient msn-search engine, declaring war to Google. The mobile market seems to be a related growing market. This made Microsoft prolong his successful cooperation (regarding DRM). PDA and mobile market grows tremendously and attracts open source developers. There was an overall high demand for innovative solutions within this mobile market. Off shoring to east-Europe, India has become a common aspect in business environment. VS follow and catches up with the outsourcing mania in Europe.

2007:

After Longhorn’s launch it seemed that longhorn was more innovative than XP but even less stable. Western developers (home workers) are following safe and leading Microsoft’s Longhorn’s less dot.NET and more XML trend, XML is seen now as an accepted standard among the internet and for exchange data. Eventually this leads to a more stable and functional Windows environment. The developers rather followed (certainty) than innovate. New ideas from the open source community are out sourced to Asian high tech zones and get integrated in Longhorn. Open source gets negatively affected by increasing off shoring trend. Programming is hardly done in home countries due to cheap off shoring programming is considered as a second rang occupation. The ice under the penguin was getting thinner and thinner.

2008:

Companies learn from each other and want to see what else is possible in those off shore resorts. The off shore countries on the other hand welcomes these nosy managers. Leading to a European business model import and increasing the off shoring professionalism. Low wage countries hire Western managers to meet increasing western requirements and to import/learn from their business model. Low wage countries like China and India invest more and more in local education to meet and understand western requirements and to create “quan xi”. This might be their ticket to the tropics. Managers try to understand the possibilities and advise their companies do revolutionary Business Process Redesign increasing IT efficiency and opportunities. The Russian law regarding lower tax rates for off shoring, that was introduced 2005 has been approved. Lower Russian-tax rates stimulates the Asian special hi tech-zones. China follows this tax-construction that originally was introduced under by President Putin in 2005. China and Russia where becoming more popular, because of stimulating/competitive tax regulations have become an increasing trend in business environment.

2009:

The off shoring countries get good at what they do and demands respect for their hard work. Therefore an “Off shoring-cartel” was developed to stabilize of shoring prices this leads to a standard minimum in wages. Off shoring is relatively still cheap. Off shoring is still interesting but not primarily from a low price point of view, new advantages i.e. economy of scale. Tech-west started having more technology knowledge and weight. This increased the opportunities for the US en Europe to seek new opportunities in the tech-west that was relatively still cheaper. Because of the price stabilisation, due to the off shoring cartel, new off shoring resources are being looked for. Off shoring in South Africa has become interesting to Europe because of the high educated people, western culture and similar time area.

2010:

The trend of off shoring leads to independency of low wage countries, benefiting their economy. Low wage countries gained even more weight in the development market. The new opportunities are being recognized by the US and Europe, due to this development standardization and research moves to low wage countries. Low wage countries are mainly focused software development, while the westerns countries concentrate on consultancy.

2011:

The expertism in Asian high tech zones has expanded to Russia. Linux for server market centered in low wage countries. Especially India is popular among the server users. India has positioned himself as a serious player on the software development market due to their efficiency and knowledge. Due this ICT advantage India dominates the (open source) server market against competitive prizes and knowledge. The market for server’s increases and so are the prices. China profits from the production (hardware) server market and focuses more and more on the PC and hardware and infrastructure market.

2012:

India, China has matured as a software developer and more often are typical American and European business units founded in these ICT focused market. Standardization and research moves to low wage/high tech countries. Low wages countries are playing more and more a competitors role against the dominancy of the US. India and east Europe are by now responsible for 80% of software development.

Key characteristics

• Economy grew stronger and got more stabile.
• Off shoring increased flexibility of companies in case of economic set-back.
• Off shoring as a service was done more and more primarily due to low wages, good quality, fast delivery, lots of recourses.
• PDA and mobile market grows tremendously Microsoft profits from this growth.
• Open source gets negatively affected by increasing off shoring trend.
• “Off shoring-cartel” (India, east-Europe, China and Russia) is developed to stabilize of shoring prices
• Off shoring in South Africa has become interesting
• The expertism in Asian high tech zones has expanded to Russia.
• India and east Europe are by now responsible for 80% of software development, while China competes in hardware market.

Timeline

Timeline Bangalore for Sure