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Technology, which has made offshore outsourcing possible, is also the key to saving the U.S. software industry and its workers from decline. Here's how:IMPROVE PROGRAMMING
A new method of software development called extreme programming sets rigorous business goals for projects, devises tests to catch bugs faster, and breaks the projects into pieces that can be done quickly by small teams. Transportation-software startup Nextjet, in Dallas, used the method to cut project production times in half.INNOVATE NEW BUSINESS MODELS
An onsite software-testing service offered by New York's Real-Time Technology Solutions (RTTS) couldn't compete with offshore outsourcers. But by using networking and Web software to launch a new remote service staffed by U.S. engineers, it can now offer rates comparable to those of outsourcers.AUTOMATE
Even as cellular carrier Liberty Wireless outsourced customer call centers to the Philippines last fall, it also began using an automated service from BeVocal. Already, the automated system handles 25% of Liberty's calls, which cost less than 10 cents per minute, vs. at least 25 cents for a live operator overseas.