software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, December 16, 2005

Offshore Software Outsourcing a forcing Trend

Offshore Software Outsourcing development is generally defined as the practice of moving software and other IT work, such as design, project analysis, testing, coding and maintenance from companies in developed countries to software companies in low-wage areas. Financial protection is also guaranteed from these companies as payments are made only when specific milestones have been achieved. In addition, it is quite usual now for Offshore Software Outsourcing companies to offer fixed-price solutions on guaranteed deadlines.

Almost all of the Fortune 500 companies use offshore software development services or have their own branches set up offshore. Major hardware and software giants like Microsoft, IBM, Apple, Novell, Sun and Siemens have extensive offshore operations. Many of the world's famous software applications are developed offshore, either partially or completely.

Offshore Software Outsourcing operations can provide a lot of benefits, including:

Quality: Customers can be assured that their projects will be done on time and according to the highest quality and technical standards.

Protection: All intellectual property rights will belong to the original company.

Costs: Customers are sure to save at least 50 per cent of all expenses if development is done in-house, not even taking into account the expenses on infrastructure and equipment.

Start-up time: It is generally much easier and faster to start up a project offshore than in-house. Besides, offshore companies can take projects at any stage.

Obstacle concerned

Offshore Outsource can be many types of work such as client/server and Intranet systems, advanced engineering and system integration, consulting and re-engineering, customization and localization, testing and bug fixing, multimedia and Web design, data entry, processing and conversion. But there is another strategic problem: what is better, to develop a custom solution or to rely on packaged applications?

Difference in Cultural, Inadequate project management and Communication problems are among the most common. However, cultural differences and management problems can be overcome by keeping a tight control over a project from the site. Offshore Software Outsourcing houses can even adopt the standards and procedures of the customer's company. Communication would not seem to be a problem anymore: electronic communication and, if really necessary, on-site support can solve it. It no longer matters whether the development staff is located the other side of the town or the other side of the world. Offshore Software Outsourcing companies are aware of these problems and they do their best to eliminate them, co-operating with the clients.