Salaries have risen in places like South Asia, making outsourcing there less of a bargain. In addition, as brands pour energy and money into their websites and mobile apps, more of them are deciding that there is value in having developers in the same time zone.
For years, U.S. companies have been saving money by “offshoring” jobs — hiring people in India and other distant cubicle farms.
Today, some of those jobs are being outsourced again — in the United States.
Nexient, a software outsourcing company, reflects the evolving geography of technology work. It holds daily video meetings with one of its clients, Bill.com, where team members stand up and say into the camera what they accomplished yesterday for Bill.com, and what they plan to do tomorrow. The difference is, they are phoning in from Michigan, not Mumbai.
“It’s the first time we’ve been happy outsourcing,” said Ren Lacerte, chief executive of Bill.com, a bill payment-and-collection service based in Palo Alto, California.
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Nexient is a domestic outsourcer, a flourishing niche in the tech world as some U.S. companies pull back from the idea of hiring programmers a world away.
Salaries have risen in places like South Asia, making outsourcing there less of a bargain. In addition, as brands pour energy and money into their websites and mobile apps, more of them are deciding that there is value in having developers in the same time zone, or at least on the same continent.
Many of these domestic outsourcers are private, little-known companies like Rural Sourcing, Catalyte, Eagle Creek Software Services and Onshore Outsourcing. But IBM, one of the country’s foremost champions of the offshore outsourcing model, has announced plans to hire 25,000 more workers in the United States during the next four years.
As a result, the growth of offshore software work is slowing, to nearly half the pace of recent years.
“The nature of work is changing,” said Vishal Sikka, chief executive of Infosys, an Indian outsourcing giant. “It is very local. And you often need whole teams locally,” a departure from the offshore formula of having a project manager on-site but the work done abroad.
“It’s not enough to have people offshore in India,” he added.
Infosys announced in May that it planned to hire 10,000 workers in the United States over the next two years, starting with centers in Indiana…