Outsourcing: Challenges for the U.S. Scientific and Engineering Community

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Internet service provider , Video managed services provider. Supply chain managed services [22]. Transportation [23]. Water [24]. Power [25]. United States. The issue of security is among the top concerns of modern CTOs. As the industry security requirements are constantly changing, reevaluating security measures is a day-to-day task of every CTO. They need to make sure that their products are operating smoothly, meeting compliance with the security controls and policies. When it comes to data security, engineering managers have to ensure confidentiality and integrity of information assets while maintaining agility, transparency, and easy data access.

They need to learn how to balance security with accessibility.

Can outsourcing improve corporate innovation?

The problem, however, only escalates due to the fact that there is a growing cyber skills gap in the tech world. Today, many organizations are suffering advanced security skills shortage in areas such as cloud security, threat intelligence, network security, application security, etc. Software development vendors can help CTOs build reliable software products that conform to industry compliance regulations.

Established IT companies apply robust strategies to developing secure applications including a concept of security by design , testing for security and on-time incident management. Information security teams at tech companies constantly revise their security policies at planned intervals to guarantee they are suitable, adequate, and effective. They educate employees on cybersecurity and train them before an accident occurs.

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When it comes to data protection, IT outsourcing companies have effective information security measures in place which comply with international standards, laws, and regulations. They undertake recurrent internal audits and develop thorough information security policies that ensure secure log-on procedures, password management, cryptographic keys management, network security, and information asset management.

The main job of a CTO is to drive consistent innovation. The problem is to keep up with tech development trends without going blindly after every next hype.

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Emerging technologies are disrupting every industry quicker than ever before. But when something new appears, a CTO should consider whether they need to adopt it or not. Or when the existing system becomes hard to maintain and scale, the CTO should decide whether to keep it or replace. Sometimes the race for popular technology can play a bad joke on the CTO and turn out to be a nightmare.

But the problem is twofold. Firstly, if engineering managers decide to adopt new tech, they will need people who know it.

Usually, these people are rare and expensive. As a result, lack of expertise in emerging technologies adds complexity, extends the time to market, and drives costs. On the other hand, if they don't modernize their tech stack, their systems will become inefficient and they won't be able to find the software developers who'd be ready to work with outdated technologies. Reliable custom software development companies have experience working with disruptive technologies across a variety of industries.

They have a wider talent pool with more diverse expertise. So an experienced IT outsourcing vendor can advise a CTO on a technology stack that would help them drive innovation without harming their business and technical metrics. Before adopting cutting-edge technology, a software development company will work with you on the feasibility study and a proof of concept.

They will help you avoid additional costs, long delivery time, technical debt, talent shortage and a high defect density, which are always associated with switching to new unknown technologies. One of the most acute pains of a CTO is to set up work processes in such a way that everyone can do their job more efficiently without wasting time on tasks that could be simplified or automated. This starts with choosing a strategy for software architecture design and ends with testing, refactoring, conducting code reviews, and setting up continuous integration.

IT outsourcing vendors are delivering a number of products year by year.

Reason for hope?

They understand all the pains of CTOs and know how hard it is for them to take decisions on their own. It's great to have an experienced partner with a pool of experts in a wide array of fields and technologies that a CTO can rely on. So they can take some weight off their shoulders and let the IT vendor help them with setting up effective software development processes.

When it comes to software architecture design, a custom software development vendor can offer a full architecture decision-making cycle, including analysis of business needs and requirements, conducting discovery phase, and building prototypes ensuring the most suitable architecture for the client. An IT outsourcing vendor can also consult a CTO on the best practices on how to improve software testing and increase the quality of software products.


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Moreover, they can help them determine the needs for automation and provide the best implementation of automation testing. IT outsourcing companies help CTO introduce continuous integration and make refactoring and peer code reviews integral parts of the software development lifecycle. IT outsourcing is a solution to the most acute problems CTOs are facing now. Do you face any of these challenges? The closest comparable numbers of annual graduates of four-year degrees are United States , India , and China , In the United States there is a strong public opinion against outsourcing especially when combined with offshoring because it leads to job displacement.

From the standpoint of labor, outsourcing may represent a new threat, contributing to worker insecurity, and reflective of the general process of globalization. Western governments may attempt to compensate workers affected by outsourcing through various forms of legislation. In Europe, the Acquired Rights Directive attempts to address the issue.

The Directive is implemented differently in different nations.

Case Studies

In the United States, the Trade Adjustment Assistance Act is meant to provide compensation for workers directly affected by international trade agreements. Whether or not these policies provide the security and fair compensation they promise is debatable. The political debate centered on outsourcing's consequences for the domestic U.

Democratic U. Criticism of outsourcing, from the perspective of U. Union busting is one possible cause of outsourcing. As unions are disadvantaged by union busting legislation, workers lose bargaining power and it becomes easier for corporations to fire them and ship their job overseas. Another given [ by whom? However, outsourcing is not solely a U.


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For example, the amount of corporate outsourcing in would be considerably lower than today, yet the tax rate was actually higher in It is argued [ by whom? However, while the US has a high official tax rate, the actual taxes paid by US corporations may be considerably lower due to the use of tax loopholes, tax havens, and attempts to "game the system". Sarbanes-Oxley has also been cited as a factor for corporate flight from U.

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