software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, December 28, 2005

Offshore Outsourcing and Virtual world

Offshore Outsourcing has been a great help to the IT companies to fulfill all their needs while keeping the eye on costly and most needed resources like manpower. But a risk can be considered as becoming too dependent on a single offshore partner. Exposure risk is also involved in handing off too large a share of essential services to only one outside service provider. It may be possible from the company’s point of view that the company may lose direct control of security, scalability, availability, and costs. If the overseas partner raises his fees or make any changes in the terms and conditions, than it is the customer only who is on the side of the risk. And also any problems that occur to the offshore partners, means it is the problems for all his customers in Offshore Outsourcing deals.

In the process of Offshore Outsourcing, the good vendor is the one who keeps careful look at all of his ends to reduce possible business risks. Still there are lots of outsourcing services that can be reduced by making the outsourcing services virtualized. In this model, the company distributes its workload across the numbers of service providers or to the vendors. Any important applications or service requests from users come into a router (service router) which checks in a directory of service providers or vendors. On the basis of the application or users requests, the router chooses the best and suitable provider based on performance, cost, and availability. After this the router connects the client to the preferred end point. Service providers or vendors get paid for each transaction they complete. In case if a service provider raises its charges or takes longer time to respond to the requests, the router lowers that service provider's priority and sends them less work next time. It can also be possible that router can remove the vendor’s name from the directory without affecting clients, and the client will be routed to another service provider or vendor to gain the advantage of Offshore Outsourcing.

Offshore Outsourcing

Such large-scale virtualized services are possible in the web based process of Offshore Outsourcing. With these, there also are some problems associated with this virtualizes services. To make the above process perfect, the company's data must be replicated properly across multiple service providers or to the vendors, or the vendors must be able to pull the data in time from the company's own facilities. Any of the approach requires costly high-speed data lines for the fast and in-time process. The solution would be the use of the satellites to multicast data from the company to its list of service providers or vendors to make the Offshore Outsourcing process fast.

Above was more of the technical problem in Offshore Outsourcing. The other problem in this, is more of the cultural than the technical one. To ease that concern, it is better for the companies to operate their own service routers or to hire third parties to manage the services of routing to check providers' billing. Service provider or vendor statistics can also be traced by the third party across multiple customers. In the process of moving the data around, one can use the tools like grid computing, web services and related technologies. Freeing the companies form the dependence on the particular vendor in the highly competitive world of Offshore Outsourcing, this technique would be an added advantage.