Software Development: US is the Best Location for Your Company - Essay Sample

Introduction

Software development companies have an opportunity to prosper in the world. India, for instance, is coming strong as an excellent place to outsource software developers. China is an emerging market for tech companies because of the low-cost startup demands from the government. Several tech companies in Canada and even Israel have had smooth startups. Despite the potential areas, globally, I chose the US to be the best location to establish a software development company. The variable to consider the US include labor costs, software developers' talent pool, levels of infrastructure and technology, populations' lifestyle, and laws, and taxes (LagerstromLiv et al., 2012).

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Variables

Labor Costs. Costs might not be priority consideration when developing a tech company, but still, it plays a critical for a startup. The competitive advantage is achieved with a low-cost structure. It is crucial to choose a location with low costs of living, therefore, making it possible to pay to spend low on labor costs (Jorgensen & Shepperd, 2006).

Levels of infrastructure and technology. Infrastructure and technology are the backbones of tech companies. The US is already a homage to giant technology companies such as Google (Henry-Nickie et al., 2019). The high-developed infrastructure and technology make it easy for Startup companies to prosper due to the availability of necessary resources.

Software developers' talent pool. According to Yarnall (2011), the US boast of a high number of colleges and university that graduate software developers. The prominent tech universities are critical in supporting the establishment of tech companies because they are the backbone of the success of the company.

Populations' lifestyle. Lifestyle preference is a variable that determines the success of a business based on owners' objectives and personal attributes. The United States offers a various working environment that supports different lifestyles. These conditions include places like San Diego for beach lovers, New York for diversity experience, and Silicon Valley for tech vibes.

Outsourcing. Outsourcing is a critical factor to consider when starting up a tech company. The US offers various places with the technological business climate required in outsourcing (Bjornali & Ellingsen, 2014). The top leadership is supposed to reduce business costs through outsourcing, and if done correctly, then the US serves that purpose.

References

Bjornali, E. S., & Ellingsen, A. (2014). Factors affecting the development of clean-tech startups: A literature review. Energy Procedia, 58, 43-50. doi.org/10.1016/j.egypro.2014.10.407

Henry-Nickie, M., Frimpog, K., & Sun, H. (2019). Trends in the Information Technology sector. Brookings. Retrieved 22 April 2020, from https://www.brookings.edu/research/trends-in-the-information-technology-sector

Jorgensen, M., & Shepperd, M. (2006). A systematic review of software development cost estimation studies. IEEE Transactions on software engineering, 33(1), 33-53. Doi 10.1109/TSE.2007.256943

LagerstromLiv, R., Wurtemberg, L., Holm, H. & Luczak, O (2012). Identifying factors affecting software development cost and productivity. Software Quality Journal - SQJ. 20. Doi 10.1007/s11219-011-9137-8 .

Yarnall, J. (2011). Maximizing the effectiveness of talent pools: A review of case study literature. Leadership & Organization Development Journal. 32. 510-526. Doi 10.1108/01437731111146596.