Recent changes in our industry have brought to the fore many interesting
forces that affect the cost of software development teams around the world.
In the past 10-15 years, the industry has achieved significant progress in
productivity. It is doesn't mean that we don't have anymore room for
improvement, but changes that come purely from tools in development will only
be slightly incremental in terms of efficiency and speed.
Another way to reduce cost is through the use of off-shoring for development
and systems enhancements. However, while we experience these savings, we are
seeing off-shore labor cost steadily rising (25% annually for the last 2-3
years), so this is not necessary a long-term financially attractive option.
What holds back bigger leaps in cost and quality is the continuation of the
monolithic design paradigm for applications? While there have been mul... (more)