software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, December 23, 2005

Offshore Outsourcing needs a careful planning

In the wide field of Offshore Outsourcing, there are lots of issues which are to be planned very carefully for the companies looking to outsource some IT functions. It will be helpful to them in insuring that these projects will perform successfully. Offshore Outsourcing demand for IT services is rising very fast as more and more IT companies are searching for the ways to cut the IT project cost and improve productivity. Global spending on Outsourcing will also hike up by 2007. But the success story might not be the same for all outsourcing projects, and this is thankful to improper planning. Consideration of cost and complexity associated with Offshore Outsourcing is an important aspect.

There are lots of pitfalls for companies that outsource IT projects and services. Some of the reasons are…
Organizational readiness

Company should also decide properly, that whether or not to go for Offshore Outsourcing, and if at all decides to take the advantage of outsourcing than up to what extent the project or service should be outsourced. It is also important to apply proper strategic decision for any IT company while looking for an IT project to be outsourced. Proper planning is also one of the important and must for a successful Offshore Outsourcing.

Planning of offshore outsourcing

For Offshore Outsourcing of an IT project, the process should start by analyzing the total costs of the whole project. There are lots of additional costs like, communication, training, traveling, oversight etc. apart from labor costs. And it is also true that these costs sometimes go up than the labor costs. It is also advisable that costs should be considered at the different stages of the project, as the whole cost is not going to remain the same. And it might be too early to think for the profit or the cost savings for just one or two years of outsourcing from the start of the project. One more important thing is to be realistic about the productivity levels that outsourcing service providers can offer. It might be wrong to judge that the productivity of an outsourcing partner will also match the same of that of internal IT staff. For the initial stages of the Offshore Outsourcing, be prepared for lower productivity and unexpected results. Additional costs or poor results may occur if the project is started without considering all the factors properly.

For making a successful Offshore Outsourcing deal, it is also required that your internal staff is supportive and understands the needs and reasons for outsourcing. Careful consideration of all factors and risks would help your company to lessen the challenges. Once you will get success and if everything goes well then you will be able to run in the wide sky of Offshore Outsourcing.