Sunday, January 27, 2008

Offshore Software Outsourcing

Offshore software application development outsourcing has led to vegetative industry growth around the globe. Software needs to undergo a step-by-step process before it is available for general use to leverage best industry practices at minimum cost, meeting international standards and industry norms. Nowadays, everyone of us, an individual or an enterprise wants to be at the top, but just gaining the top positioning won’t do; retaining and maintaining that position is of utmost consideration. Outsourcing software applications to offshore companies has strong impulse to monetize spending of business players.

Software outsourcing gathered strength with increasing number of sources available in present IT-edge, requirements delivery in possible least time, less skilled personnel available, discrete communication and inefficient management of various modules within a large enterprise. These corporate players started looking and relying on third party for better management at lesser cost and remain competitive in the global marketplace. These are the few factors that led big companies to outsource their software application development to offshore companies where they find time zone difference from eastern countries most attractive, cheaper human capital, rich resources, and skilled professional and low processes cost. Market analysis shows gradual penetration of investors in Indian market and other developing countries. We find increased productive, managed easy solutions where full control remains in the hand of outsourcing companies.

40% of the Fortune 500 companies including GE, Lucent, Oracle, Microsoft, Motorola are leveraging the outsourcing model. The list is growing depending upon the onsite and the outsource resources available. Offshore Software Outsourcing is the most leading area of outsourcing. Cost saving by adopting this model can vary from 40% to 70%.

Manipulating overall strategy (considering failure and success) we find overall the offshore outsourcing campaign is a success. Objective is to maximize the ROI, remain competitive and reduce upbringing cost.

Remember offshoring software outsourcing is not always the solution, so before moving to it, the best approach is to find the niche requirement and then find solution to the root problem. Proper synchronization between onshore and offshore team members, improved processes, and better time management and growth opportunities for both developed and developing countries are among few benefits that offshore software outsourcing companies are enjoying.

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