After Y2K insurers couldn't wait to replace old operating systems. They thought it was a race for survival. Now that they've survived, the jittery economy has upped the urgency for legacy replacement, but carriers struggle to afford these projects. Software acquisition costs are a fraction of their implementation expense. CIO's need qualified people whose costs won't overwhelm the benefit. Meanwhile, legacy systems don't just disappear.
Offshore outsourcing rates can make the price tag of a long project not look so bad, but offshore brings communication and cultural barriers. Dramatic time zone differences make the ever-popular agile project, which needs proximity of teams, impractical. It's tough to ignore offshore rates, but projects live on spreadsheets only until they begin, and there are nearshore alternatives.
A study published by Global Services ranks Halifax, Nova Scotia second among emerging information technology destinations in North America. Nova Scotia hourly rates for senior programmers, technical architects and other lead resources are significantly lower than nearshore rates in the States.
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