Q&A: LogicLibrary CEO says SOA might slow development outsourcing

Computerworld - LogicLibrary Inc. in Pittsburgh focuses on the service-oriented architecture (SOA) governance market with its metadata repository, or library. This repository is geared toward helping IT managers rein in burgeoning Web services by mapping, securing and governing components that can be reused as services. While the notion of software reuse through services has long been associated with the move toward an SOA, LogicLibrary CEO Greg Coticchia is seeing a trend of companies using the potential cost savings from reuse to avoid application-development outsourcing. He spoke to Computerworld this week about this trend and the overall effect of SOA on application development groups.

LogicLibrary CEO Greg Coticchia

Do you see companies moving toward an SOA mainly for internal integration or for building new applications out of existing processes? Internal integration is still the dominant driver. We still have not reached the majority of customers with live active business services. There are those in the second generation that are doing external applications ... to integrate to third-party supply chain partners. The ability for our libraries to be shared over major organizations is happening today, but all of them have to some degree outsourced development. Now, they will be developing applications with a partner company.

What are some of the challenges of trying to move to the reuse scenario within an SOA when outsourcing development work? There is someone on a different time schedule building and getting a hold of information. If you want to change your outsourced development group, you do not want to be held hostage. If you don't have a record of knowledge -- to know what happened and who worked on it -- that will be an incredibly difficult thing to do. People want to provide different levels of access to different assets and artifacts, [and] maybe limit an outsourcer to only seeing a portion of the application they are working on.

Do you see companies relying on reuse within an SOA to try to justify continued investment in internal development versus outsourcing? Yes. People want to be able to show that the investment they have made in software development is paying off. Despite the hourly cost-rate differential between a U.S.-based [developer] and an offshore developer, the ability to use and reuse software artifacts allows the overall cost to be very competitive. We are seeing people saying, "This is another way we can compete effectively." They are showing that 60% of a project has reusable assets contained in-house. They can locate and use those assets over and over again, [and] will be more effective even if the cost per developer is higher internally than outsourcing.