Outsourced Code

Corporations that make their living from proprietary software often oppose the open source development model because the methods and core logic of their software often contains the “secrets” that make the software unique in their market. But developing software in the traditional corporate model is very expensive and is why software costs continue to escalate while computer hardware has reached commodity pricing. The issue that hasn’t been discussed is the security of off shore and contract development. This is a particularly interesting issue seeing as the countries that have the brain power to do this type of work with labor inexpensive enough to make it economical are in those nations most likely to not only steal the technology but market it as their own product. We don’t yet see much of this in the software world yet though it is rampant in the computer hardware industry. Is software far behind?

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