Offshore outsourcing by TDC

Tele Denmark A/S is the principal provider of domestic and international telephone services in Denmark. Every year, TDC invests billions of kroners in telecoms infrastructure. Since last 18 months, TDS was working hard to get rid of IT projects which were not strategically necessary to keep within. Also, since 2003, TDC services is lowering number of employees and now current number is 600 - less then half of the total headcount before 2003. With this reduction, TDC will do software outsourcing for majority of IT development work to India. This step will reduce more than 100 million dkr in next three years. TDC is going to announce partnership with a company which will have 100 Indian software programmers working for TDC as a deal of offshore outsourcing. This will reduce development cost around 3- to 50%.

Software outsourcing and offshore outsourcing company for .NET development - TatvaSoft

Software outsourcing to India

India has quickly became the benchmark for offshore software development. Every year, national association of software service companies (Nasscom) hosts a conference in UK. Motive of this conference is to bring more UK organizations to outsource their software development and IT enabled service business to India - outsourcing to India.

There are many British companies like British Telecom and banks like HSBC and Standard Charted who heavily rely on outsourcing to India. This outsourcing to India saves above 50% of the cost according to many analysts. Analyst also predicts that, soon one Indian IT company will be among the top five technology companies in the world.

Currently outsourcing to India is $10 billion and out of that, 2 billion businesses is from Europe. This is growing at the rate of 30% and according to Mr. Karnik, president of Nasscom, by 2008 , Indian export earning will be $50 billion and total revenue will jump to 87 billion dollars. IT outsourcing and software industry is accounting for 25% of all exports for India and massive 8% of the total GDP. But it is employing just 0.25% of the total population only. With this massive demand in software outsourcing to India, India is providing 500,000 new IT and engineering graduates every year to meet the demand.

Many other countries have entered in the software outsourcing band wagon like china, Russia and eastern European countries. But India is far ahead in this race. China has chance of developing a competitive offering but it will take few years.

TatvaSoft - your one stop for outsourcing to India

Outsourcing to India

Tuesday's summit on information technology enabled services and BPO strategy in Hyderabad concluded with much analysis. One analysis related to outsourcing to India released mentioned that companies are able to generate higher cash flow because of lesser investment in telecom, instruments and physical infrastructure. Wage arbitrage has also led to increased cost savings. Outsourcing to India related to offshore software development and software outsourcing along with BPO is helping customers to achieve 40 to 50 percentage of cost saving. More and more companies are outsourcing because they want to remain competitive and want to concentrate more on their core business. This can be achieved by outsourcing to India. Offshore software development and BPO helps companies to free up their resources and their higher management can concentrate on the core business of the company. According to Nasscom-McKinsey report, two parameters will differentiate successful business companies in ITES & BPO business - Level of intellectual property a company has and range of services a company can offer. Currently because of rapid growth of outsourcing to India, there is a wide gap between demand and supply. This has contributed to higher attrition rate which is around 25-40%. According to analysis, IT enabled services in India has generated 150,000 jobs in the year of 2004-05 and is going to generate more in the next year.
Outsourcing to India - Tatvasoft, A software development company

Are you ready for software outsourcing?

In the begining, software outsourcing was used just to cut cost and concentrate on core business. There was very little room for innovation and change. But in years, software outsourcing has matured and changed a lot. Managing proper relationship between suppliers is instrumental in realising the benefits of software outsourcing. The new approach taken by many companies is that, outsourcing should be ongoing and integral part of the organisation. Its benefits are higher service levels, reduced time to market, improved operation performance, increased IT staff retention and reduction of risk. There are few points which should be considered for new collaborative approach. This approach changes software outsourcing business from traditional buyer and seller agreeement to one of co-operation and a shared vision of what one can achieve together. It also suggests constant improvement with focus on most beneficial parts of business.

This approach also expects high level of cooperation and engagement between buyer and supplier at all levels in software outsourcing. For this, clear and measurable objectives should be set. Buyer and seller in software outsourcing agreement should align their IT objectives and business goals with common focus on meaningful business. One should not do micro management and micro objective settings and one should not expect overnight results in software outsourcing. Nothing remains same in this world. And so is the case in software developmen life cycle. One should expect change and should be ready to accommodate business changes, technology changes and operation improvement. To create win-win situation in outsourcing software development, one should acknowledge and wlecome the mutual dependency and should ensure that, objectives are aligned together. Same depends on culture. A win-win situation should be created with shared vision and approach to working together with like minded people who all shares same goals.

For any software outsourcing requirements, contact Tatvasoft - Reliable software outsourcing partner.

Offshore outsourcing

Outsourcing is not a new issue although offshore outsourcing is new comparatively. Everybody outsource something and something ranging from house cleaning to high-tech jobs. Since last many years, software development and technical support jobs were outsourced to developing country where cost of labor is very low compare to developed countries. Recently this has moved to lesser technical functions like call centers, insurance claims and accounting and tax return management.

Every company is going for cost cutting now days. To reduce cost, US companies get temporary work visa for software developer and import him to US. That software development person learns specific needs, working and requirements of the company who has managed temporary visa for him. After that, he returns back to home and establish IT department for that firm in his home country. Once, this offshore IT department is operational, the colleagues who trained person are replaced. India is one of the biggest beneficiaries of offshore outsourcing wave. It has good universities, low cost highly educated and English speaking people. India is second next to US, when it comes to total count of English speaking population. Other countries like Ireland and Philippines are beneficiary and bigger countries like china and Russia are emerging in the market of offshore software development. Workers in Philippines are offering broad range of business services like customer call center / helpdesk, accounting, reviewing insurance claims and processing bills.

Till now outsourcing was just hiring outside firm to handle some specific or technical tasks which are not considered core competency for the business. Like a health Care Company outsource software development so that they can focus on their business more then internal software development. But this scenario changed with the evolvement of internet. It has brought world very close. Person sitting on another side of globe can work on software development without hassles and send / manage his work online. This changed outsourcing to offshore outsourcing.

Business man says, offshore outsourcing is nothing but a new trend of cost saving. It is beneficial for American economy in long run. Because companies can spend more money on core technology and R&D. Companies can do more savings and can invest more in cutting edge technology which can generate new high paying white collar jobs. On the other hand, labor advocates counter this offshore outsourcing with the argument that, offshore outsourcing is threatening US living standards by forcing those who lost jobs to overseas software developers by undertaking low wage jobs. In addition, this argument of offshore outsourcing was one of the big issues in last presidential election.

In US, companies do not require to report their offshore outsourcing practice to any governmental institute. So, estimation of job loss varies widely. Some reports say it is 300,000 of the total 2.4 million jobs lost in the year of 2001. That’s why one expert mentioned about offshore outsourcing that, even though economy is on recovery, it has not generated enough jobs. Supports of offshore outsourcing says, its a reflection of how US economy is evolving and in this phase, bumps in the road are expected. They say, an attempt to block hiring of foreign workers will hurt economy and American workers. America can loose its edge in cutting edge technology. On the other hand, offshore outsourcing allows global work force which serve clients round the close apart from cutting labor cost. And according to British information firm Data monitor, only 2% of the total call centers are working outside of the parent company's territory.

TatvaSoft - your reliable offshore outsourcing partner