Local software / tech pioneer and serial entrepreneur Dan Grigsby makes a compelling case about the depth and value of Minnesota’s contribution to the software industry. According to Dan, Minnesota has a quietly innovative and expert software development work force - with major players opening development offices here like Microsoft, Oracle, etc. Dan states that Minnesotans can get the work done for about half of what it costs on the coasts (I don’t know if it’s half, but I’d agree that there is probably a steep discount).

With the weaker dollar (and even without) does it make sense for coastal businesses to outsource software development to the Midwest? Is Minnesota ready to capitalize on this movement? Are we ready to support and assist software entrepreneurs and truly foster the software industry in MN?

No, we’re not. I have not been impressed with local associations or any state agency sponsored effort to promote our software industry.

If you look closely at where future innovation and good jobs will be had in the 21st century - you’ve got to bet on the Internet and software. Yet Minnesota does not have an organization dedicated soley to moving software ahead. This has got to change.

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About six weeks ago, ArcStone discontinued its practice of offshoring indefinitely. Since then, I’ve been doing a fair amount of research into the advantages and disadvantages of outsourcing. It’s become clear that a rational examination of this problem cannot occur by examining outsourcing and offshoring without considering the larger economic context. Read the rest of this entry »