software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, December 30, 2005

India Software Development

India Software Development is one of the hottest spot for the Software Outsourcing seekers in the world of IT. India is the country having the big IT giants like Wipro and others. India is the country which provides the all software developments services at very low or competitive cost globally. This is the main reason which makes India Software Development Industry the most demanded destination for the Offshore Software Development process.

In the field of software development business, India Software Development company’s teams are sharpening their techniques and refining their approaches to help their clients worldwide for the right balance between the cost and the quality. These companies are not only dealing professionally but they also believe in making and maintaining long term relationships with the valuable clients’ worldwide. This might be the reasons that most of the business to these companies come from their valuable and long-term clients globally. India Software Development industry can be the perfect choice for the one who seeks for the best quality and low labor costs.

India Software Development industry is the one where one can get the low labor rate, talented and skilled workforce, in-time work, and other required aspects as per his desire. As India is one of the biggest names in the IT industry, it is quite difficult for any new comers to start the business in India to meet their needs. Cost of infrastructure, talent seeking, and cultural difference are the most difficult aspects to enter into. One can avoid all these and gain more than his requirements form the big sea of software development industry of India. Business of BPO (Business Process Outsourcing) is now also one of the emerging areas along with the Software Development industry. One of the most appropriate ways in the field of IT is collaboration. By seeing the growth of India Software Development industry lots of other countries are also now coming in the market to gain the advantage.

India Software Development

As far as India Software Development industry is concerned one can get the advantage of all desired service under one roof. There are lots of excellent IT companies in India which helps in serving the needs and wants globally. Higher skill level projects like software architectural work, critical components development, and requirements development can easily performed by these IT companies. These companies are also focusing on development of agile methodologies, by planning, tracking, and proper communications features. Open source is one of the greatest aids for developers, making available high quality software and shrinking barriers to software availabilities worldwide. With all above facilities and features India Software Development industry has been one of the Hottest and most demanded spot for Software Outsourcing in the giant world of Information Technology.

Thursday, December 29, 2005

Extra Horsepower by Software Outsourcing

Software Outsourcing is typically associated with Information Technology, since big giants and banks often turn to outsource their work by offshore vendors to handle their back-office process and Internet delivery functions and with the advantage of cost cutting to live up with the competitive edge. These are the arrangements that usually get heralded in press releases and news stories of Offshore Software Outsourcing.

Software Outsourcing can overcome with the problem as the consultants are employed as needed per their requirement. The criteria that banks are really buying are the ability to have extra horsepower when they want it. It is not clear picture whether outsourcers are cost-effective in all situations or not. The cost of outsourcing can vary greatly by institution, depending on which service provides vendors are hired and how the contracts and agreement are written. However, Software Outsourcing does allow banks to shift from a fixed to a variable cost structure for their financial structure.

The consultants can bring some leverage to bear through points out that, the buying power Comerica commands for its 6 million square feet of office space pales besides enjoying the real estate market. Another benefit that applies to this expensive call centers; IT outsourcers already have sophisticated systems in place and they are spreading the cost across many customers, all of whom benefited from that investment in Software Outsourcing.

Software Outsourcing

Software Outsourcing rests on both control and cost, as exemplified by the experience of firm which was a heavy acquirer of other banks. Devoting of time and energy to frequent mergers made it difficult by their facilities of effectively in-house, so it outsourced much of its facilities management from offshore outsourcing like activities.

The primary thing to do internally is to set the goals, by urges banks to stay involved and act as ultimate arbiter on decisions. In too many projects, the client needs to be available for decision-making, what's more, another urges bankers to reserve final say over any task that directly affects the corporate brand.

Because of the Software Outsourcing Industry, the banks want to make sure that their employees are fully utilized before hiring outsiders for working help. This might be part of a larger trend, which sees evidence of banks focusing inwardly a little more in their current economic slowdown by bringing some critical jobs back in-house.

Even committed to Outsourcing by banks, generally reserve a few strategically important tasks to manage by them. For example, America does its own transaction management in their other country, where the bank is headquartered and the bulk of its square footage resides in other country. The bank is also handling all its accounting and bill paying internally in order to maintain tighter control over projects of Software Outsourcing.

Thursday, December 29, 2005

Offshore Software Outsourcing has Benefits more than Savings

Offshore Software Outsourcing, the process which is usually done for the purpose of cutting costs of the business, but it is far away from the only benefit. Offshore partners can help the local business at the time of high demand in the market. Offshore partners help in all the areas like boosting up the capacity of the business, finding skilled workers or in any areas of the local business to overcome the demand in the market. Cost savings can be the prime aim for the Offshore Software Outsourcing process, but with that there is also a notion of improved time to market for everyone. There are lots of highly skilled workers overseas, and the process of Offshore Software Outsourcing helps the local business to take the advantage of this wide range of talent form offshore.

Offshore Software Outsourcing also has another benefit of giving a company the local presence their desired markets anywhere around the world. Costs such as hiring talent, traveling, and communication from the oversea are also to be taken under the great consideration along with the associated benefits. The wrong judgment about these elements may lead to unwanted business challenges. In the initial stages of offshoring process, it was really an issue, whether to have a presence overseas directly or to have an offshore partner for hiring the staff and work overseas. But later on the process of offshoring was fully done with the approach to have a partner offshore to help the business by most of the IT giants. Still there are lots of companies who believe, to have the direct presence is the only best way to deal Offshore Software Outsourcing. It is believed so because these experts think that there are lots of things which one can’t obtain without having direct present in offshoring country. They also think that this way of working overseas would make your employee feel that they are really working under your banner. It will help in boosting up their morals. It can also be started by sending your own employees offshore who really are willing too go in the world of Offshore Software Outsourcing.

Offshore Software Outsourcing

Offshore Software Outsourcing is the process which involves another challenge of satisfaction of the employees. You really have to make your employees feel like they are working with you and they are also a part of your team. Too much outsourcing can also create the threat in the mind of the onshore employees of loosing the jobs and other things. Salary in not the only important aspect for the employees, but the employees are also looking to work for some well known brand name companies and some specific types of work while dealing with Offshore Software Outsourcing process.

Thursday, December 29, 2005

Offshore Software Outsourcing and Data Security issues

Offshore Software Outsourcing, the process which can help you save your money by cutting the cost of the business, but can really create the threat of security for your valuable informations and data. While dealing offshore, one can find lots of security gapes. You never know what can be done with the informations you provide to your offshore partners. Your informations can be easily misused by any one. There are lots of companies who are in a rush to cut the overall costs of the project, but they are really creating the challenges about the accountabilities. It is also not confirm that your private information will remain private while dealing in Offshore Software Outsourcing Process.

Offshore Software Outsourcing process is only considered as the process of focusing on lower costs by many of the financial managers. But the laws and regulations, protection plans, insurance of misplace or damage to the data, personal information or financial informations and other certain criterias of the outsourcing country should also be taken under the considerations. You are the person, who will handle your business informations with great care, but what about your offshore partner that he will also take the same care of your valuable data and won’t let them be misused? For example, what will you do if your offshore partners will put your valuable business information to a great risk? You also know that if anything goes wrong your business along with you will be at a great risk. So always take care while dealing in Offshore Software Outsourcing business, and not just make cost savings as your prime goal.

In Offshore Software Outsourcing, there is no real or easy solution to these issues. So it is better to collect all possible personal informations about your offshore partners, like the way of his working, his credit in the market, how he manages others informations, how he is going to manage your deal, how and where your data is going to be stored, and what guarantees he gives you about your personal informations security. These all are the important issues while dealing Offshore Software Outsourcing.

You can inquire about the informations of your valuable data to the offshoring partners as and when required in the deal of Offshore Software Outsourcing. You can also challenge him in case of the misuse of your data or informations. It is always advisable to search another partner with some higher costs, if you don’t feel secure, working with your current partner. And cost won’t be that much higher too. In this way these can be big securities headache issues, if not taken care of in the deals of Offshore Software Outsourcing.

Wednesday, December 28, 2005

Offshore Software Outsourcing and reasons why offshore deals shatter

In the world of Offshore Software Outsourcing the businesses of offshoring is touching the sky day by day. More and more IT companies are trying to satisfy their business needs through the process of Offshore Outsourcing. With this one thing is also fact that many of the Offshore Software Outsourcing deals will fail because of improper planning and management.

While dealing in Offshore Software Outsourcing, some enterprises are sprinting into the deals with the hope to gain a competitive advantage by the way of cost cutting or a boost in production process. But there are many factors which can really smash the desired of expected gains if not taken care of. Here are given few reasons or factors, where the outsourcers should try to focus more attention while dealing Offshore Outsourcing.

In Offshore Software Outsourcing deals there might be lots of hidden expenses or charges which should be properly thought of. These may include factors like, communications, cultural training, travel and infrastructure. These expenses may cause real difference. One more important thing is the time duration. Try to make a deal which may last more than one year, because short time duration deals may not gain you desired advantage if the planning and startup costs are relatively very high. Smaller time deals with high cost of startup will also affect the profit margin of the business in Offshore Outsourcing.

Offshore Outsourcing

Another important factor in Offshore Software Outsourcing is proper and timely communication between the vendors and the clients. Both the parties need to engage in the deal constantly and properly after the deal or the project is signed between them. It is often marked that either party looses the concentration, which leads to the failure of the whole project or deal. At the end of the day good and proper communications between both parties plays a vital role in the deal of Offshore Outsourcing. Proper communication includes constant discussion about projects, goals and expectations. Both the parties should also be able to explain that why the Offshore Outsourcing deal is made and what benefits will they gain at the end of the project.

Again the deal of the Offshore Software Outsourcing should not be done by focusing on the salary factors only. Sometimes this may also lead to the mistakes. It is also true that offshore service providers staff is not that much productive in the initial stages as compared to the internal staff. This may lead to the loss of productivity in the initial stages. The programmers of the offshore service provider are relatively new and inexperienced with your business. Internal staff may lose morale or confidence and may feel insecure, if more and more work is outsourced. Difference in the culture also plays a vital role in the deal of Offshore Outsourcing. Difference in the style of the communication and attitudes towards authority can also cause some undesired problems. So the proper advice about the offshoring company and their culture is also required before dealing in Offshore Software Outsourcing.

One more important aspect in Offshore Software Outsourcing deal is the lack of offshore expertise and willingness. The offshorers sometimes demand to have everything in place internally and secure themselves before dealing offshore projects. It is advisable for the outsourcers to find out the maturity of the process of IT. Standardized methodologies are also required along with established mechanisms for making the project mature. Any careless steps in these areas of the project may turn into the poor result or failure of the Offshore Software Outsourcing project.

Wednesday, December 28, 2005

Software Development Outsourcing by Localization

Software Development Outsourcing by localization is the essence, making versions of software products available which can operate in multiple languages. In this topic it is discussed, what is involved in such Software Development Outsourcing, and it is not as difficult as one might imagine.

Localization is the process of adapting a product. It is in the context of Software Development Outsourcing Program to a specific locale to his language, standards and cultural norms as well as to the needs and expectations of a specific target market. A properly localized product also meets all the legal requirements in force in the user’s region.

To satisfy the needs of one country Software Localization, the country performs it by taking the source code for a product developed by other country and modifies it in their own desired way. It could be a very expensive and time-consuming process, if the original product is not built with a view towards being localized. Often teams of developers in different countries are needed to adapt products. There is the direct cost of multiple development teams in modifying the source code of the original product, and give the name of Software Development Outsourcing.

Software Development Outsourcing

It suggests that in English we read sentences, written left-to-right and from the top, down the page or screen. This is not the case for all languages, so it's a good idea to restrict your first multiple language projects to languages that also share these characteristics with English.

If one wants to sell Software Offshore, copy protection, upgrades, error reporting are all the issues that will broaden. That also needs to take account that date format, paper sizes, currency symbols, sort order and addresses might differ, and let’s not forget that the majority of the world uses the metric system for weights and measurement. By not lowering the standards, one has to achieve the translations to be perfect. But most people appreciate that one has taken the trouble to translate the text, and will overlook the odd mistakes. And let's be realistic, the English used in any Software Development will likely have good reputation.

The other method to develop multiple language versions for Software Development Outsourcing is, to separate out all of the text presented to the user into a file or database table. This text must include screen display text, printed report text, constants, prompt, error and warning messages, and help displays.

Some other legal aspects that need to research are obviously many countries make their own laws. For example, in some countries there are quite restrictive laws that disallow anyone to make claims that a product is better than other company's product. Encryption algorithms are an obvious example, which do a little research, and if one is using a translation agency than ask for advice.

One should also try to concentrate on an existing Software Development Outsourcing product and making it available in multiple languages. One can also provide a useful resource, not only for the product's Software Development Outsourcing by language, but in ongoing product promotion and support by organizing a marketing agreement with a local distributor. There are several very helpful news groups that you can subscribe to and a number of books are devoted to the topic of software localization.

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.

Wednesday, December 28, 2005

Bringing Offshore Outsourcing back in-house

Many IT managers will be wondering how they might adjust to an environment of increased IT spending and necessary investments, as the economy are heating up a bit. One thing is fact that Offshore Outsourcing is a way to deal with tight budgets and a rough economy.

In Offshore Outsourcing, one would think what to do if the economy gets significantly better and budget opens up? Would one consider bringing any Offshoring IT work back in-house? But some services like, help desk, VPN, file/print services, server management, messaging, and SFA can not be brought back in-house in Information Technology Outsourcing.

To bring back Offshore Outsourcing of IT, first it is important to tackle the idea among some IT groups that Outsourcing IT is essentially “bad” for IT employees. The Outsourcing of IT phenomenon could be misleading as IT professionals might just be working for Offshore Outsourcers in great numbers. But still, this argument doesn’t belong to some of the troubling trends in Offshore Outsourcing which are affecting IT workers.

Offshore Outsourcing


At the time when recession began, financial necessity might drag IT service providers into considering outsourcing IT for some certain functions. And with such outsourcing change battle will wound behind, and IT professionals may feel or realize that those outsourcing arrangements were one of the right choices in spite of the economic environment.

Offshore Outsourcing for large company IT departments have some certain means to set up sophisticated monitoring, software management, patch management, and asset management systems. But in smaller organizations, IT staffs almost struggle with a gradually approach to practically managing such technical systems. With more professional services available within a reasonable per-desktop, per-month pricing model for small to midsize businesses, it’s really not worth harassed to manage all of these functions yourself. One can’t perform these functions better, and doubtfully would like to do it cheaper. Offshore Outsourcing of IT can make a lot of sense if you’re handling an enterprise messaging system such as Microsoft Exchange or Lotus Notes.

So at the end, in Offshore Outsourcing in IT if you can outsource the whole system, and still have the bunch of powerful developers available as and when required, then you will be able to achieve an IT dream: “No operational responsibility with maximum flexibility available”. Lots of web services providers like Salesforce.com and Sforce toolkit are doing the same. And to be honest to you it doesn’t make any sense or give any advantage to bring such a system back in-house. At the end it can be said that “With this kind of innovation, Offshore Outsourcing of IT is certainly here to stay.”

Tuesday, December 27, 2005

Offshore Development alternatives

Offshore Development subcontractors have been inefficient in promoting their services, both within their own countries and abroad. Over the last 10 years, several countries have made a strong commitment to enhance their competitiveness in the Information Technology industry by assuming the role of Offshore Software Development providers.

Offshore Development publishers are in the midst of sweeping changes in the structure of the industry. After evolution of the software publishing model, it continues to accelerate, driven by the wide difference between the Software Development cost and its marginal selling and distribution cost. There is evolution of a new Software Development Outsourcing model because of the gap generated.

One source of cost advantage lies in the Outsourcing by labor pool like the hardware side of the industry. In the 1980s Offshore Development by Outsourcing was limited to basic hardware components; offshoring are now offering a much broader range of goods and services, including Software Development. Indeed they are aided by government policies that explicitly seek to promote services-based economies that are often led by Offshore Development in Software.

Business Process Outsourcing is redesigned by the means of new, more complex, systems and more applications. Top-notch IT-programmers with business understanding are at a premium in Information Technology Outsourcing.

Offshore Development

Jobs like Offshore Development for Software services are being sending to overseas because of tapping lower-cost labor. Many American based software companies are hiring foreign nationals to work in their own states. The relationships are becoming more complex as well as less structured; often network of foreign nationals is the primary influencer of a company's use of Offshore Development resources.

However, not all projects see cost savings in Offshore Development Solutions. Sometimes the work done in India includes large costs i.e. telecommunication charges and travel to India. In other cases, where IT-programmers from India are brought to client’s country to work at the client's site, a good portion of the savings can be lost in travel charges.

Today the management is focusing on how to perform and improve business processes; they are not thinking on how to roll out Information Technology within the company. Because of that, it is working to identify the processes within the organization that could be better managed by an outside party or Offshore Development Outsourcing Company.

Perhaps the benefits of Offshore Development are more apparent than creation of large custom applications. Competition is unlimited, the project is unbounded, and time-to-market is important. But it is not necessarily the most important factor to success. A single large customer might spend and design an application, than sending it for Offshore Development for the coding, which would be useful for focusing on core business.

Tuesday, December 27, 2005

Offshore Outsourcing and demand of expertise

In the world of IT, it is true that Offshore Outsourcing of IT services are increasing day by day. For this, effective offshore initiative of proper design and implementation is also required. There are lots of important factors to keep in mind while dealing in Offshore Outsourcing.

In the deal of Offshore Outsourcing it is advisable not to outsource your core business values. Stick to your key competitive advantages, and also consider how you expect your company to remain competitive. After taking the decision about the above factors, lists the one which can be outsourced. It is also required to do a complete analysis of the portfolio for all the application development project or IT processes. Try to make Offshore Outsourcing a part of a broad business strategy and don’t only look for the cheaper labor rates. Through thought of the whole project is must to get the success in Software Outsourcing. It is also required that you also play the role of an owner of the project. Involve your experts and main management personalities in to the early stages of the offshore deals. Good communication and change management strategy will be also helpful to deal with the issue that may arise internally. Don’t let the discontinuity play any role and be honest with your internal staff about the whole process of Offshore Outsourcing.

Offshore Outsourcing

Offshore Outsourcing is the process with the challenge to get prepared and put the governance structures and employees in place properly. Try to put the tools and best practices for effective offshore project management which may include, risk reduction techniques, incentive and penalty, service description, vehicles, etc. It is also desired to manage the internal competitions properly, along with the proper development of the requirements of the projects by the clients. It is also advisable not to make frequent changes in the process and let them be fixed. Issues like pricing, culture, specialties and others are also needed to be compared and studied carefully before the commitment of any deals. Legal issues, insurance, financial strength and security are also key areas to be taken care of. Always try to find the best vendor in the industry with the experience and who can lead your business in the proper way and satisfy all your needs. It is also true that in the world of outsourcing, vendors are growing at very high speed and not concentrating on the recruitment, training and retention policies. The turnover ratio of developers is also going high in the process of Offshore Outsourcing.

Offshore Outsourcing really requires lots of expertise and needs to be taken café of constantly. Any misleading step or statement may lead any organization to the worst in the world of Offshore Outsourcing.

Tuesday, December 27, 2005

In Software Development China lagging behind to India

India is today's hot destination for Software Development Outsourcing and Information Technology Outsourcing, but China is looking to give it a run for its workforce. Demand for IT workers in India will begin to outpace supply, driving up outsourcing costs there. As workers in India become more in demand, it will become more difficult to maintain employee continuity. It also may result, that in India, workers will be able to leave their jobs for better-paying ones as often as every six months.

To attract a larger share of United States companies, China's Software Development Outsourcing companies are eying to replicate the success of their Indian rivals, seeking to diversify business beyond India. China’s Software Development Companies have traditionally focused on its fast-growing domestic market, Korea and Japan. But as competition increases at home, they are starting to look abroad, particularly at the U.S., for new growth. In this massive onslaught of Offshore Outsourcing there are not any other nations than India and China, who will become large Outsourcing centers for Offshore Software Development.

China's Software Development Outsourcing export revenue grew by sevenfold since year 2000 to $2.75 billion because of increasing demand from the United States, which has helped in demanding of jobs to China at a very high speed. At annual sales of $27 billion, China's software industry accounts for only 3.3 percent of the global software market. But several new companies have raised the competitive stakes abroad. China has become a leading maker of computers and electronic devices but lags behind in Software Development Outsourcing from its rival India.

Offshore Software Development

The reason that China lags behind India in Software Development might be due to a lack of marketing acumen, the Indians have been really great at marketing themselves. Indian software giants drive the majority of their revenues from the U.S. and Europe, although sales have started to slow after growing a few years.

Foreign companies to take more control when they shift work to China and its Software Development providers to take pro-active measures to assuage these concerns as China has the world's largest number of science and engineering graduates. The vast supply of technology talents helps to keep wage inflation and turnover rates at bay, while higher wage rates have cut into Indian companies' margins. The country has also developed expertise in some niche areas such as software embedded in cell phones and digital cameras and open-source software which can be obtained for free and are easy to modify.

In Offshore Software Development Chinese companies will face formidable hurdles before posing a real threat to Indian rivals. Because of the English proficiency level is lower and the protection of intellectual properties remains a concern for foreign companies. China also lags behind India in terms of enforcement which India is putting intelligently in the Offshore Software Outsourcing Industry.

Monday, December 26, 2005

Why Software Outsourcing India?

Software Outsourcing or Offshoring Software Development process is a valuable tactic for upholding and gaining competitive advantage over the competitors when implemented to fabricate an optimum output in Information Technology business. In the existing international IT fiscal scenario, firms are growing in large business for Offshore Outsourcing services and Software Outsourcing Development from various regions, residing mainly India.

The Offshore Software Outsourcing service provider and clients guarantee least interference to venture advancement in a typical occasion of natural disasters, power outages, and other trade disorders. Moreover, stout catastrophe recuperation and back-up devices and arrangements are usually shared. When the work and informational data is amongst the client and the Software Outsourcing service provider, then it reduces reliance on specific geographies, extenuating much of the susceptibility allied with a concentration of Software Development resources and supporting infrastructure.

Offshore Outsourcing

If one consider the great benefits of Offshore Software Outsourcing India are the significant savings and rapid results. Multi-lingual project managers and programmers, saves you from language and culture difficulties in India, not to mention global time differences unlike China. You can save up to 30 to 40 % in the project cost by Offshore Outsourcing projects.

By Outsourcing the Software project to Offshore Outsourcing center, you don't need to spend your time and resources rather you can concentrate on the core development activities of the business. There is also access to proven and standard quality of web and software solution by one who Outsource their Software Projects.

Software Outsourcing can reduce investment for resources and their maintenance cost. There would be significant reduction in project overheads and operating cost. Arrival of internet, globalization, free marketing, and liberalization has turned the world into a small global village consequently destroying all trade barriers worldwide. Major of Information Technology Outsourcing firms do most of their business overseas and obviously want to have some of their employees in those markets. Huge incentive in some countries because of lower wages is also cause to move operations, especially since high-speed communication removes many of the barriers to dealing with American based colleagues and clients. Because of that numerous MNCs in Australia, U.S., Europe, and Japan have initiated Offshore Software Outsourcing Development world countries particularly India.

The Software Outsourcing is aiming on two foremost customer factions: 1) Software houses that want to diversify their information technology or cut their development costs; 2) Any entrepreneurs looking forward to redesign their proprietary software function or Internet-gizmos to empower their trade in the current market. It is a propos hiring proficient wizards to facilitate making business undertakings swifter, enhanced and economical by doing Offshore Software Outsourcing.

In addition to savings Software Outsourcing India endows her patrons with software Development process improvements that translate into ongoing upgrading in Customized software cycle times, class and economic viability. By delivering at right time and fulfilling the commitment Indian Software Outsourcing operations have achieved world-class levels of consistency and quality.

Monday, December 26, 2005

Outsourcing of Software Development: A Recipe

Fortunately, Outsourcing Software development has progressed to the point where ready-made modules are available to order and combined to create software. No menu has been provided in market for people to be hungry for new software. Instead, you must provide your own recipe for what you need from the other party. To create Customized Software Development to meet your exact specifications the good news is low cost Outsourcing software Development and design resources are now available in India too.

Offshore Outsourcing can save you time and money if you know your needs and wants. Too often American firms outsource without a good understanding of what their own software should do, and this is the biggest reason of outsourcing failure in someway. It is not reasonable to expect your outsourcing Software Development team to have a menu of software, pre-prepared, so you can just choose the items that you require.

Offshore Outsourcing Software Development - or Offshoring Software which is a related term but has slightly different connotations - has a significant potential to improve a company's bottom lines, improve quality of offerings, make it more responsive to changes in technology, import new and desired skill-sets into the organization and generally make the business enterprise more competitive in today's worldwide market-place. However, if done with little preparation and without a clear business case, can often be a sure recipe for disaster. What you should do after you have decided on a clear business case for your offshore outsourcing initiative, after you have chosen the provider and now are in a position to start transitioning the work to the Offshore Outsourcing Software Development team. We deal with the role of strategic planning in preparing for Offshore Outsourcing in another column.

Outsourcing of Software Development

Divide the transition phase into 3 to 10 phases depending on the volume of the Software Development project. At each phase set achievable goals and bring about a consensus among all stakeholders on benchmarks that you'll test against at the end of the phase.

The processes that are not being Offshore Outsourced - have strong links to the outsourced processes. Put the people involved in those processes in direct touch with the outsourcing provider as much as you can. It is important to remember once again, Software Outsourcing is all about People and relationship between people.

Not to retrench extra staff made redundant through Offshore Outsourcing. This may sound ridiculous as the whole idea behind Offshore Outsourcing Development is to replace costly local labor with cheap foreign labor.

The approach behind Offshore Outsourcing Software is not like walking into a restaurant, expecting the Outsourcing Development team to advice, in the way software should look, prepared and presented to clients.Instead, bring own recipe when start work with a Software Development Outsourcing team. Unlike dining experiences, it won’t ask for the daily special. One has to provide a specific description of what it would like to have, and how it should be prepared. Without such a recipe, the Offshore Outsourcing Software Development efforts can be starved for success.

Sunday, December 25, 2005

Offshore Software Development India: Making the IT work

Offshore Software Development India brings the Ideal projects for Outsourcing companies. Very technical and complex tasks can be bad projects, since much needed amount of communication may end up with no cost advantage, as everything is to be explained. Very small projects may also be unsuitable, since the time to prepare the specification might be more than the cost advantage. Not all projects are ideal for Offshore Software Development, any tasks involving proprietary knowledge, which can not be safeguarded with agreements, are not suitable for this kind of Offshore Software Development.

Visit the company and try to establish a good relationship with the Offshore Software Development partner. Good communication equipment and facilities, excellent English language skills, experience and references are the main attributes in outsourcing. Check with a few of the references and ask for their experience and advice on how one should work successfully with the company. Make them to understand your needs and quality demands and check that the Software Outsourcing Company has adequate equipment, stable finances and good management.

Offshore Outsourcing Development India

According to experience in the most successful cases, the Outsourcing Company and the Offshore Outsourcing Company builds a strong long-term relationship. To understand the cultural problems, settings and communication, start a personal relationship with the IT-programmers with whom they are going to work. Often the Outsourcing Company sends 1-2 people to visit the Offshore Development Company which helps to build much more confidence than doing it via email.

Starting with a small pilot project, might be the best way to start and establish a long term relationship. Some of the clients give the same task to different Offshore Development Companies and than after evaluate and select the best one.

Outsourcing Company can gain significant cost savings, up to 85% in certain cases. The outsourcing company is able to release resources for high value-added and priority work. This process help them in concentrating on their designing, core competence and business knowledge, while delegating technical tasks, research, maintenance or routine tasks to the Offshore Software Development Company.

For the Offshore Software Development Company, expensive new recruitment or the high cost of local consultants can be avoided and instead of that they can use lower priced consultants. It is very difficult to recruit the expected competence in Western countries, but it is a completely different scenario in India, where there are many qualified IT-programmers with good academic training, consulting and programming capacity are available. Outsourcing company also reaps the knowledge gained by the Offshoring and consulting assignments. Some clients outsource their programming needs by getting programmers from India for short or long term projects to work onsite with their own designing team. Others send whole or parts of projects directly to India for Offshore Software Development.

One can achieve great success with Offshore Software Development projects. The key guidelines, which will help find a good Outsourcing Partner, who has a proven record in offshore Outsourcing development activities over several years. For evaluating the result Work towards establishing a long term relationship, it is advisable to visit development partner. This will help in choosing suitable projects which possibly send a pilot project to the Offshore Software Development Company and help in establishing good management practices.

Offshore Software Development in India is profitable in the long run; not just for one-time projects.

Saturday, December 24, 2005

Offshore Outsourcing and Privacy Threats

Offshore Outsourcing process involves the high data privacy risks and also involves the complexity of managing this risk. So to work in the smarter way companies need to make it sure that the vendors offshore, contractually tied to some specific terms and conditions related to data transmition, storage and use.

It is marked that the use of Offshore Outsourcing process has grown dramatically in the past few years because of the service flexibility offered by lots of IT companies and the view of lowering the project costs. But at the same time, consumers have also become more anxious about the privacy, and the misuse of personal data. Lots of instances of fraud are also appearing in the deals of Offshoring. As a result, companies need to ensure that overseas vendors are contractually tied to specific conditions regarding how data is transmitted, accessed, used, stored and shared by the vendors. Data protection and access process and regulatory compliance with proper monitoring of the process of Offshore Outsourcing are also to be taken care of.

In Offshore Outsourcing, financial services and related data may create new risks compare to the domestic outsourcing services. Country and political risks are also involved in the process of Offshoring. Other risks like Operations/Transaction risk, strategic risk, Credit risk, Compliance risk and many more risks are involved in Offshoring services. The actions like breach of contract or security are difficult to find and deal with by the regulatory compliance at anyone’s point of stand. Categorizing is also attempted when the data is sent overseas for project purpose. It is also true that without knowing what your data is, you will not come to know that what type of protection you need to apply as there might be the range of different data’s in the process of Offshore Outsourcing.

Offshore Outsourcing

In Offshore Outsourcing, the risks of privacy also vary by the type of the jobs. Activity with higher risks include any function using personal data, like call centers and change process, while lower-risk activities might include application development or source-coding risks. It is also important that the companies understand their own legal criteria’s and need to check whether their vendors meet these criteria’s or not. One more difficult task is to find out whether the data is misused or not in Offshore Outsourcing.

In Offshore Outsourcing, any country’s laws regarding data privacy and legal systems are also very important and make lots of differences. Because many countries having large business of Outsourcing has no any particular laws to protect this process. While making the contract, privacy issues must be taken under the great consideration to avoid or lessen these issues in the process of Offshore Outsourcing.

Saturday, December 24, 2005

Offshore Software Development: Haste makes Waste

The truisms of Offshore Software Development are that out of three attributes -- cheap, good and fast -- one can pick only two in that segment. Spending more money makes little difference in speed and quality but at the very same time, makes differences in services, which they are getting from the Offshore Software Development.

In Offshore Software Development the companies are maintaining the most comprehensive database of project metrics, including over lots of projects spanning. Its data comes from its own projects as well. These projects are 60% Information Technology projects which includes finance, human resources etc., 27% engineering (scientific, process control, etc.) and 13% real-time embedded systems (firmware, hardware controllers, etc.). But the projects in IT sector for Business Process Outsourcing are more towards the Software Development.

Company’s Software Development Management's estimation of product, provides an empirical analysis of a variety of projects addressing Information Technology, real time embedded systems, and engineering. Offering accurate project estimation has been a long-standing but elusive goal of this industry. The result came that large teams created almost six times the number of errors as compared to small teams which have done less times. Large teams failed to deliver significant improvements in cost, quality, or time, widely recognized as the three major metrics of Offshore Software Development.

The problem has nothing to do with Software Development or hardware and everything to do with individuals and group behavior. More complex software doesn't account for it, and faster hardware with more memory won't fix it. The only consistent explanation is that as you add people, efficiency and quality decrease by them.

Offshore Software Development Services

The efficiency of small teams for Offshore Software Development is developed by an atmosphere of intimate collaboration, and the information produced does not take as much time to sink into each member of a smaller team. The diminishing quality stems from the absence of a holistic view of the project, when it is broken down into compartmentalized segments and distributed to each member of a large team; this approach can lead to errors and complications to them which are not good signs for better Software Development Outsourcing.

In the Field of Offshore Software Development the drop in efficiency is obvious from own experience. A team of four or eight people can congregate in a small room and work through issues on a whiteboard, while a team of 50 requires collaboration software and the requisite infrastructure and administrator to manage it, synthesize information, time to gather information and more time to coordinate a meeting which leads to discussion on Offshore Software Development.

Friday, December 23, 2005

Software outsourcing in regard to employment protection

Many large reputed software outsourcing companies are now eagerly employing call centre and back-office staff in developing countries where there are no minimum wages to be necessarily be provided. The employment legislation and other discrimination are not much considered. There’s a huge difference in the pounds and dollars given to the in-house staff, and the salary provided to the offshore outsourcing staff.

How much is it beneficial for Indians? Not necessary it is always good because what we find is professionals from other fields are tempted away from more socially useful employment. The law of Britain does not give direct legal right to the workers who are providing direct services to Britain, just the reason that they are not physically present over there. Those who are notionally residents of UK are protected wherever in the world they work for British employer.

It is difficult for foreign software outsourcing workers to impose their rights, as the courts are unknown about how to deal with complaints effectively without physically present there. Even the label of self-employed or foreign subsidiary is no use as it is not bring any difference in the employment protection legislation, including the anti-discrimination laws. Even software outsourcing service industries face the same problem. Many software outsourcing firms based in the developing country like India pay a decent wage. This can obviously be a blow to the British government against the legislation department, for not taking the employers’ safety and protection into consideration. The employers of software outsourcing industry would have to face this struggle for some more time, until a change in the infrastructure of British government comes into existence.

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…
Communication
Cost
Culture
Organizational readiness
Productivity

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.

Thursday, December 22, 2005

Offshore Software Outsourcing benefits employees

Offshore Software Outsourcing sometimes strikes fear in the mind of the employee of loosing the job. But they also know if the work is done right, they may find that the process of Offshore Software Outsourcing provides them with an opportunity to advance their careers and sharpen their skills.

The report of the survey of Offshore Software Outsourcing suggest that almost 80 percent, felt apprehensive at the prospect of having their positions outsourced, around 70 percent stated that they were more satisfied and happy with the new roles and responsibilities, they were given.

Offshore Software Outsourcing is the process with lots of confusion. It is marked that people often try to improve their positions and get to work for a specialist operations.

In the process of Offshore Software Outsourcing, it is highly recommended that employers should do early and open communication regarding benefits, remuneration packages and retraining decision to the employees to ease their fears. Proper communication with the employee is the key to change their perception in the process of Offshore Outsourcing.

Offshore Software Outsourcing

In Offshore Outsourcing, another important factor is inclusion and making sure to the employee that company offers workers the suitable opportunity to voice their opinions and concerns. Work council’s and representative’s participation may be helpful in moving employees through the transition, and may provide them a channel for their feedback regarding Offshore Outsourcing.

It is also possible in Offshore Software Outsourcing, that if companies fail to communicate Offshore Outsourcing changes with the employees, they may risk losing employees. On the contrary if it is done rightly, than Offshore Outsourcing isn't as threatening as it may sound.

Offshore Outsourcing isn't always viewed as a threat; however, different countries have varying views on the practice of Offshore Outsourcing. In U.S. Offshore Outsourcing seems to have the most open and commercial view. While in countries like China it is viewed with much more trepidation. In Europe, the perception appears to be in between. And with the U.K. leaning towards the U.S. views of Offshore Outsourcing.


Still, it doesn’t matter in Offshore Outsourcing that where the employees are located. This process can be a positive experience for employees if there is proper communication about the change. One more thing is marked that people often improve their positions after their job is Outsourced.

Thursday, December 22, 2005

Offshore Software Outsourcing means job creation is must

Offshore Software Outsourcing is a reality of the 21st century and inevitable for any country, the same country must create jobs to replace those jobs being lost. Offshore Software Outsourcing invariably results in the loss of lots of jobs. So the country should focus on creating opportunity in their own country to provide more jobs, so that, those who have lost jobs will get new opportunities in the future

Lots of remarks of experts come against the backdrop of a growing outcry in their own country against the loss of jobs by Offshoring to low-cost locations like India and china. A large number of foreign companies are shipping jobs in Offshore Software Development, BPO and call centers to their Indian subsidiaries or to contractors in India or china with a mind set of cutting costs by the way of Offshore Outsourcing.

The reality of 21st century international economics is that, these kinds of Offshore Outsourcing and dislocations will take place. So it is better to minimize this process and provide new opportunities for employees. This may be a major issue that countries like U.S. will be focusing on in the months ahead and also might focus on too much Offshore Outsourcing.

Offshore Outsourcing

Credit of Offshore Outsourcing really goes to the Internet system and broadband capabilities, so that information and services can be moved around the world. It helps the countries getting connected to other parts of the world at the speed of light, and the people are taking advantage of that kind of capability. This process really helps Offshore Outsourcing. Offshore Outsourcing of jobs in the United States to Mexico, to China, to other parts of the world is done as the global world develops drastically.

One thing is sure in Offshore Outsourcing is that the people from any country gets the opportunity to serve Worldwide needs. Outsourcing of work overseas is commonly known as Offshoring. That’s why it has come in for criticism from both legislators and workers' unions because of loosing the jobs and less compensation. It really is strange that on the one hand people are talking about openness and Outsourcing of markets, and on the other hand the countries like U.S. are planning to ban Offshore Outsourcing.

As far as Offshore Outsourcing is concern, it can also be done that the big Outsourcing countries like India and China should allow more and more FDI and create more job opportunities to the countries from where the Offshore Outsourcing is done.

Thursday, December 22, 2005

The secrets of Offshore Outsourcing Success

Offshore Outsourcing is a volatile topic, because it puts both, jobs and even careers at risk. But Outsourcing of IT strategy needs calm and sober looks at it. The main problem in dealing with a remote supplier, especially in IT, is the proper communications. When you are given a project to an Offshore Outsourcing supplier, even after explaining everything, and assigning a deadline, you must keep proper communications during the project. Because without proper communication you may face the danger that the work returned to you may not be what you expected form the Offshore Outsourcing.

In Offshore Outsourcing, people are paid at a higher rate, but are well worth it. They act as proxies who are responsible for all the project work that must be done with proper accuracy and within the deadline. First they review the work and then distribute it to the people in.

In Offshore Outsourcing, it does not work properly if, after defining requirements, needs and wants of the project and signing the contract, the client continues to make changes to the given specification. It always creates difficulty and pain if the outsourcer is working on a moving target. A change management process with a change control board is recommended where the clients, not the outsourcer, would take the lead in Offshore Outsourcing.

Offshore Outsourcing Services

As far as Offshore Outsourcing is concern frequent and regular communication between client and suppliers is must even if the work or specification doesn’t change much. Technologies like WebEx, NetMeeting, and IM can be used to great advantage in the process of Offshore Outsourcing.

Offshore Outsourcing can be proceeding with a very unique protection plan i.e. "de-risking". After the supplier sets up the whole infrastructure and hires the required resources, the client can take over the entire center at a predetermined price to make a proper Offshore Outsourcing deal.

Offshore Outsourcing is really a difficult issue at the end of the day. One thing is sure that a coder sitting in China or India is costing the companies about 60 to 70 percent less than an equivalent stateside programmer. As Offshore Outsourcing demand increases and the international skilled worker pool gets benefits, Offshore outsourcing costs will definitely rise worldwide. At that point of time, something other than only payroll considerations will be the differentiating factor for hiring in the process of Offshore Outsourcing.

In Offshore Outsourcing, still the bottom line is “Proper communication between the vendors and the clients is critical”.

Wednesday, December 21, 2005

Software Development India

Offshore Software Development (OSD) is the next big thing for the Indian Information Technology companies. The IT companies are geared up to tap this huge market. The Offshore Software Development market globally is worth more than $20 billion and India has just got about a billion of it. Organizations believe that Software Development in the offshore market will be a specialized service. The companies will invest over the next few years towards infrastructure, manpower, technology and training to garner a larger pie of the Offshore Software Development market.

Software Product Company generally spends about 20 to 25 percent on Research and Development, as it is their bread and butter, they feels that at least 50 percent of this work should come to India if not 100. Offshore Software Development will go closer to the customer where the cost-saving is not because of lower wages but due to higher expectations.

Today the entire industry works on wage parity, but this will not be for long. India is paying almost the same wages that are paid to employees in the US. The gap is certainly narrowing in Software Outsourcing.

India has emerged as the new haven for high-technology investments. It’s just been few years since the report of 2002 projected the magical size of nearly $80 billion for India’s Information Technology Industry by 2008. Industry revenues at that point were less than $5.1 billion. India is set to corner about $60 billion of the global Offshore Outsourcing business that will generate an over $300-billion market by 2010.

This is just 10 per cent of the addressable market. With better infrastructure and additional spending in the range of $700 million to $1 billion, the IT-Business Process Outsourcing sector can tap about $150-180 billion during the next five years. The industry will generate more than 1 crore direct and indirect jobs by 2010. By that year, India will be teeming with a graduate pool of more than 17, 73,000 in the age of 20-35 years. So, would there be a problem in securing manpower? No. Only securing “suitable manpower” would be a handicap.

Future of Offshore Software Development in India by some giants of world

Microsoft founder Bill Gates announced a visit to India and plans to invest nearly $1.7bn that will create more than 3,000 new jobs over the next four years. The Software giant already employs some 4,000 IT professionals in India. At the same time, Intel said it would invest more than $1bn in India, most of which would be for a new research and development centre in the southern technology hub of Bangalore. In October 2005, Cisco announced $1bn for new Indian start-ups and for leasing and financial solutions to its customers and partners.

We can proudly affirm on the point that India’s Offshore Software Development sector is the fastest growing area of the economy over the past decade, posting an annual average growth nearly around 40%.

Wednesday, December 21, 2005

Software Outsourcing - Early Successes

Initially when we heard of software outsourcing, we thought of their fundamentals as flaw and would think of they could never yielding the customers needs, how much ever the person may try hard to provide. Effectiveness of the early dealing was difficult because of two reasons. First is they could not eliminate the waste and second one is exploited the economy of scale in mainframe operations. But those days are gone, the software outsourcing transactions have developed and become more responsible to the consumer and client’s needs.

Offshore outsourcing

Organizations, which moved towards the practicality unique product in Software Outsourcing category in the late 90s, are now reaping rich rewards. Annual revenue growth rates for most of the top 10 companies are more than 100 per cent in the range for the last two years. Never the less comprising Rs 2,000 crore out of the nearly Rs 76,000 crore expected to be earned by software exports from the nation this year, the segment has been doubling its revenues for the last three years.

The Information Technology industry is achieving phenomenal economies of scale & reduced the unit cost of hardware and software communications dramatically. Any sensible prospect for software outsourcing will get their house in order, by eliminating the waste before approaching the market, and mainframes have given way to server technology which does not lend itself in the same way to economies of scale.

The most significant thing which drives these firms is their huge potential for growth. They point out that out of the $40 billion (Rs 180,000 crore) that product companies in the US are supposed to have spent on Outsourcing Software Development this year, India has barely scratched the surface by attracting just around Rs 2,000 crore by converting it into Software Outsourcing Development.

Purely, by increasing the scales does not bring economies of scale. They rely on being able to spread costs which do not vary with volume (fixed costs) over a greater volume. Phenomenal economies of scale were achieved, through massive investments in Software Outsourcing Developments, chip plants and infrastructure spread over hundreds of millions of units and squeezing labour costs. In these cases the marginal cost of producing each additional unit is now insignificant. Economies of scale level is not possible until and unless investments are made repeatedly in technology to shift more of the variable cost into the fixed base.

Offers by outsourcing

Specialist services provided by the suppliers are now investing in technology, with the method of application-specific Software to reduce labour costs, can also deliver benefits by software outsourcing. The only way to alter the economy is to Outsource and cut out any of the suppliers' profit and management costs that arise purely from labour. Onshore software projects costs a lot more than Offshore Outsourcing and there is subsequent reduction in running costs can be very substantial. Further, the difference between what supplier’s staff is paid and what the user is charged for them is a great contribution to suppliers' profits.


Tuesday, December 20, 2005

Offshore Software Development: Why?

Offshoring Software Development, the process which is certainly becoming highly demanding in Information Technology Outsourcing sectors day by day. It is becoming important to hold back and wait for the crowd to move forward or force you to move in this direction. To gain the benefit of this it is necessary to act now, so that you can start to establish the relationship with an offshore outsource firm and gain a competitive advantage before it becomes necessary and compulsory to stay in business. So, here are few of the main reasons one may consider for the offshoring some of their projects or important business functions:

Offshore Software Development helps in saving money

The main reason behind the companies’ look for offshore software outsourcing is to save money. It can be considered as an important goal but it should not be the only reason the company look to go overseas. It is marked that companies are replacing their software developers or call centre staff with cheaper, untested, offshore outsource workers. That is really what Offshore is all about. It helps your employees to gain a competitive advantage in the marketplace. It is always necessary to guide your valuable talent (staff) in the right way. You may find that there are some of the employees who are reluctant to change and would like to perform the monotonous type of work for all the time. You may have an IT professional who wants to code .net forever. But the reality is that the market is changing day by day. So the longer they live in the older market of high-pay for developers, the less market value they get. So the time may come when you finally can't afford to keep them on, and you will be enforced to release them into a job market they are not ready for.

Have you ever thought to promote your developers to architects? Have you ever thought to promote your existing call centre staff to second-line help and call script writers? So give the best to your staff which they can use in the world of Offshore Outsourcing when they leave your organization.

Offshore Outsourcing helps you to increase your productivity.

In the field of Offshoring you will have marked that it is always difficult to find a right person for the right work, whether it is the work of developer or call center resources. We are hearing that everyone is talking about the decline of the technology market, but the reality is that most developers in the Western world are employed and making a good money for themselves. One thing is sure that it is not an easy task to find a suitable developer from your local area. While sending a project offshore outsource, you will have access to a very large numbers of developers who, in numbers of cases, can start work as and when you say. They are not just ready as per your requirement but you may find more skilled as well then your requirement.

Offshore Software Development leads you to start your business to the global marketplace.


For any small or large business owner, one would most likely like to have customers spanning the globe. By sending work to an offshore outsource service provider by no means will get you customers there also, and it will also help you to establish contacts on your routine visits to your service provider. Your group of developers or staff overseas could talk up your business in their social circles and areas. This will help you in establishing a network thousands of miles away from home country.

These are some of the important reasons for why: Offshore Software Development. You may have your own reasons to get the benefits of it.

Tuesday, December 20, 2005

Software Outsourcing Development on knife-edge

In the global Software Outsourcing front India is currently a leader as the success has raised costs all around. Companies which are doing strategic planning for the next 20 years are all looking at option other than India," says managing partner of a firm specializing in consulting on Software Outsourcing Development.

Several countries are preparing road maps to attract global companies in the Business Process Outsourcing space. However, India still does not have a strategy at the macro level to develop the industry in the long run. The positioning of a country is now becoming important in the global Offshore Software Outsourcing space. India got positioned by default and not by any great government design, as a place with an endless proportion of educated and English speaking workers.

Software Outsourcing Development has witnessed a transition from being, traditionally, an in-house process to a global collaborative effort. This really comes as no surprise, with what the increasing need to focus on standards, maximize resources, and ultimately optimize core Business Processes. In addition are the constant imperatives to reduce risks, and combat mounting cost-pressures as well as numerous difficulties associated with securing the appropriate skill sets.

Software Outsourcing Development

Companies are constantly leveraging Information Technology to gain competitive advantage. Though, this is becoming increasingly challenging with over-stretched IT budgets. Some have countered this problem by boldly moving into new paradigms of distributed development—which typically involves spreading Software Outsourcing Development across different offices, time zones and even companies.

Venture capitalists funding small and mid-sized Software product companies in the US are insisting on an Offshore strategy to keep product development costs low. This helps the independent Software Outsourcing vendor’s management focus on marketing and customer management more than project management and resource management. For starters, product companies work on the cutting edge of Information Technology Outsourcing.

Success of the Offshore Software Outsourcing industry in Bangalore and Gurgaon can already be seen. But the infrastructure in these cities is cracking under the pressure of growth of the Business Process Outsourcing industry. Moreover, there are limits to the natural advantages that India has, and companies and industry observers feel that unless a push is given India may lose its edge.

Most of them want to replicate this success in some form or the other. But it is difficult to beat up this heat prevailing all across the nation. It is at rocket speed for greater success globally.Governments across the world are envious of India's success in the Offshore Software Outsourcing space.

Tuesday, December 20, 2005

OFFSHORE SOFTWARE: HELPING HAND TO SMALL REGIONAL FIRMS US.

We do know that offshore software outsourcing businesses are excelling for a developing country like India, China and many others too. But we are not sure about the idea how small firms software outsourcing to overseas could be beneficial for the US businesses? There are some web-based services that allow such small firms to easily create and maintain their own interactive web sites.

Such web services offshore outsource all design and programming functions. There is a quick move to access world-class freelancers at a fraction of the cost of hiring a U.S. based team. India is also famous for the set-up of interactive and creative programmers. These programmers help in web-designing for those clients at US. The small client’s dream to create the best web manifests into truth! Some of the web-based industry do really possess distinctive software and enables the web-users to build highly professional sites with unlimited multimedia content. They held variety of templates and styles, and are user friendly, making for short-learning curve.

The company can outshine its competitors in a very crucial area as cost. Some of the company also provides free domain registration, no contracts or hidden fees, and no charge at the renewal of their services-enabling them to transform their sites into enterprises.

The abundance of software outsourcing designers and programmers around the world, have contributed such great set-ups at the right price, for the offshore software outsourcing to help small regional firms of US.

Tuesday, December 20, 2005

Predictions of valuable software outsourcing India

According to a report India's Information Technology Outsourcing and Business Process Outsourcing (BPO) services industry could be bringing in US$60 billion by the year 2010, growing at over 25% a year. In product of Software outsourcing development, companies have started to establish niche.

Overall prediction in Information Technology Outsourcing market out of India will grow to $8 billion by the year 2008. Today, India’s reputation to do product development and move up the value chain is getting established. True strength of India is the fact that it has a strong and growing pool of young high-end technical talent. Several large companies setting up their Development centers in India have proved this. It will provide India a long-term play in this space. Software product Outsourcing (SPO) is emerging rapidly and is likely to be among the fastest growing segments of Information Technology Outsourcing to India in the next few years.

According to a report published by, Research and Development (R&D) Outsourcing market for Information Technology in India will be estimating to grow by $9.1 billion by 2010 from $1.3 billion in 2003, at a compounded annual growth rate of 32.05 percent.

Business Process Outsourcing Industry is currently seeing a boom in our country. While it is creating some perceptions that India is a low cost- low value destination, we see the BPO boom as a means to create an ‘India’ brand in the western markets. If we can able to build on this and change perceptions by delivering high quality which we are doing, this exposure can be used to engage with the same customer for high-end work.

Software Outsourcing

Software Outsourcing India and services exports were less than $18 billion in the fiscal year ended March 31 2005, which rouse by nearly 35 percent from the previous year, the total addressable market for global Offshoring is near by US $300 billion, of which US $112 billion will be Offshored by 2010. By 2010 the Indian Information Technology Outsourcing and Business Process Outsourcing services industry could directly employ 2.25 million people, besides providing indirect employment to more than 6.25 million workers.

A large number of multinational technology and user companies are stepping up Outsourcing to India. Microsoft Corp. announced last week that it would increase its staff in India from 4,000 to nearly 7,000 workers over the next three to four years.

Software Outsourcing is big business, generating global revenues more than $298 billion in 2003. Outsourcers reap gross margins of 25% to 50% on projects sent overseas. A contractor typically pays between $11.75 and $16.50 per hour, including benefits, to a computer programmer in Mumbai, India, and charges its American client between $18 and $25 hourly for that worker. Software Product Development in IT is a rapidly growing market that is turning India into a destination to Offshore Outsource high end applications is clearly visible with the space and time keeping into account.

Monday, December 19, 2005

Software outsourcing India on run!

Software outsourcing India has been running down here and there. There is a huge difference between the US dollar and the Indian Currency Rupee; the naive Indian young workers are ready to do whatever necessary to keep their status quo ongoing. They do not wish the union hovering in their business. India’s software outsourcing sector is partly merged in allegations of worker abuse, overworked work conditions, and lack of parity of pay between what these oligarchs get from the Western nations and what they pay out according to some of the media reports, the chairman of Wipro Ltd, a top Indian software exporter, says he is opposing unionization of the information technology outsourcing sector

Aziz Premji, chairman of Wipro, has quoted few lines on Hindustan Times regarding software outsourcing,” the unionization of the sector would certainly be a retrograde step. It wills unnecessary damage the growth of the industry as global clients will get concerned about whether they should be sending business to India."

Software Outsourcing

Currently, as we can see there are no labor unions in Software outsourcing India. the countries key part of the people are busy in outsourcing industry developing software programming, involved in customer service and back office work for multinational companies. India has been earning more than 40% of the world' outsourcing market, with US$17 billion in sales annually from the business. Indian outsourcing companies are targeted and blamed for violating labor laws by the trade unions supported by the communist parties.

The workers can unite and bargain collectively with the management, they have a right to do so under the constitution said last month by Prakash Karat, Chairman of the Communist Party of India. According to the software outsourcing industry, has been facing challenges not only from the United States but also from other developing countries like China, Malaysia, and the Phillipines.

Monday, December 19, 2005

Offshore Software Development life Cycle

Offshore Software Development services in every Company are aimed at providing complete support to Software solutions throughout their life. Increasingly, Software Companies must look to move some portion of their operations offshore in order to stay competitive. With a clear focus on high quality, timely delivery and cost effective software development, organizations have made Offshore Software Development work as a key project management tool.

Software Development Life Cycle Management is an automated process, improvising project management and, what is most important, improves visibility of the project to the clients. The fact is that when an offshore client places a product life cycle project, the client runs greater risks than in the cases when a separate operation within a project is outsourced. Outsourcing, a complete life cycle gives the customer much less control over the project.

Life Cycle begins with the clients’ Offshore Software Development requirement analysis followed by planning, development, testing. That is the ideal choice for efficient implementation of the projects.

Analysis of Customer Requirement

Experts quickly grasp and analyze the vision of what they are looking for, as the initial stage of the long process, the customer requirement analysis is aimed to define the required functionality, environment and interface of the future product as well as to create its detailed functional specifications.

Planning of Project

Offshore Software Development can at times be intrinsically complex and risky and always requires careful planning. Proper planning guarantees that the project will not deviate from the targeted goal and increases its visibility to the client and management. Planning is an opportunity to re-assess all risks, establish priorities, select the best technical solutions, finalize schedules and resources and meet the deadlines.

Software Development

Highly skilled and talented workforce, as well as the world-class infrastructure and state-of-the-art tools and technologies make them first choice for both custom Software Application Development and Product Reengineering and Customization Services.

The time today is for global competition and product life cycle acceleration, when once considered innovative and ground-breaking is now out-of-date and ineffective. Logically planned Software Development process is a future oriented combining expert team with research and development activities with cutting edge technologies to create brand new products and product categories. They know how to make their ideas successful and market-winning with less time, less risk and less cost.

Delivery

When it matters to delivery after Offshore Software Development by time, it should follow a strong and healthy delivery management plan, and provide the customer with all the technical documentation together with tools, guidelines and past learning’s. Furthermore, weekly reports and conference calls with the client accompany the product delivery and guarantee mission-critical quality of service. All these procedures serve important purposes - minimizing the inherent migration risks.

Monday, December 19, 2005

Offshore Development: Relative value to growth

Successfully developing of BPO sector for software outsourcing is same as that of any other large-scale business project: planning, implementation, and control. What makes BPO/ offshore development different is that, instead of obtaining goods of a certain specification and price, the Offshore Software Development buyer must contend with fulfillment of the administrative tasks and integration of the vendor.

Indian IT and business process outsourcing (BPO) companies would soon overtake their Western counterparts. Which means it is basically a metric that reflects the way the market perceives these companies as either growth- or margin-driven. Prior to that, Companies fundamentally have to realign and improve their cost structures before they can grow profitably for successive Offshore Software Outsourcing.

The most significant step in Business Process Outsourcing implementation actually starts before the Software Outsourcing buyer even decides which process to Outsource or enters into discussions with an Outsourcing vendor. This involves identifying the operations, both manufacturing and administrative, without which the firm would cease to be viewed as a source of goods and services. All other processes are secondary and, therefore, may be considered candidates for Outsourcing to others. There is significant potential for the Indian companies to grow in a smart way and potentially to be the winners in the space, but there's a lot of competition on all sides of corner.

Offshore Outsourcing

In business like Offshore Software Outsourcing, embedded growth rate is not nearly as high as the recent growth rates because you can think of that as a long-term growth rate, or a perpetuity growth rate. However the market expects that there is significant growth potential with strong margins. And that's really a composite assessment looking at their marketing capability, their technology, their customer relationships; a whole variety of attributes. This says that the Indian Information Technology Outsourcing Organizations have very strong valuations and they have very strong incentives to grow, as well as being a low-cost supplier for the customer segments.

Major of the things we bring up in the study is the fact that part of the challenge for the Indian Offshore Software Outsourcing companies is to try and understand what their value-added is, as other companies start to see the value of moving their costs down. They need to be thinking differently about their own business models and their own business capability. At that point they might have to move to a higher-end kind of value proposition and reassess where they're spending their capital for the growth of the Software Outsourcing Development.

There is a phenomenon around the strategy architecture that's related to pulling this all together in Offshore Software Development. We’re going to see more high-end strategy practices moving towards a global process optimization where they will begin to really understand that the ability of a particular area to handle a particular kind of Outsourcing is probably superior to another area. And we'll ultimately see -- rather than a generalized kind of processing -- some of these specialized processing areas start to emerge. Like in insurance processing or claims processing, that become kind of independent, stand-alone centers of excellence within the global process architectures. And that's an evolution that many of the Indian Software Outsourcing Companies would arrive at.

Sunday, December 18, 2005

Software Outsourcing Rules Codified By India

Software Outsourcing is on the run in India! These outsourcing companies give employment to naïve Indian young workers and take advantage of artificial currency differential between Indian Rupee and US Dollar/Euro, are ready to do whatever necessary to keep their status quo ongoing. India’s Offshore Software outsourcing sector is submerged in economy. Excellent work conditions and good infrastructure of pay between what these oligarchs get from the Western nations and they pay out good as well.44 % of the world's Software Outsourcing Development market is claimed by India, with US$17 billion (A14 billion) in sales annually from the business, according to the National Association of Software and Service Companies, the India's main software trade body.

From "Software Outsourcing" to "Off shoring" to "BPO", the phenomenon answers to many questions. It is "global sourcing" in the euphemistic parlance of corporate chieftains, and "delocalization" in the blunter phrasing of the French. In spite of everything what you call it, it is significantly threatening to transform where and how, and much of the world's work is done.

Software Outsourcing Rules

Gravest challenge mounting by developing economy against the developed, but it will be neglected on the periphery of trade talks in Hong Kong, silenced by the fury over fruits and vegetables. One-ninth of the world's service jobs are being done from anywhere - from taking orders at a drive-through to researching stocks, from designing aircraft cockpits to vetting medical X-rays. But for work and workers to migrate, the rules of global trade must be changed. And the most important the Offshore Software Outsourcing is at boom in the world of IT. There is an uprising issue that”The developed economies are going to face acute shortages of working-age people - they will have to either import people or export work."

Services exports have created an economy within in India which also includes Software Development in india services. The legal promise is not to erect barriers against Software outsourcing, as some have been threatened. Another thing is easing of regulation for professionals like accountants and IT professionals to travel to their foreign clients for short-term valuable projects on non-immigrant visas.

The product called "e-secure" software is recently launched in India at a seminar in Delhi to raise privacy standards in the Indian Software Outsourcing companies and counter security threats to the Business Process Industry. IT is a collaborative effort of Confederation of Indian Industries (CII), Call Centre Association of India (CCAI) and Secure Synergy aims to bridge the security gaps and provide reassurance to the foreign companies willing to offshore outsource their processes to India, as well as their clients.

Saturday, December 17, 2005

Software Outsourcing India - Replicating the magic

In Offshore Software Outsourcing India is the world’s favorite destination:
India's share of the global offshore Software outsourcing market for software and back-office services is nearly about 44%. It’s premier trade body of the IT software and services industry, technology and IT services exports in India were worth more than $17bn in the year ended March 2005, a rise of nearly 35% over the previous year. A further expansion of 30% in exports is being predicted in the next twelve months, to cross $22bn.The world is going to discover, the fact that India is a super power when it comes to developing Software Solutions. Swept by the current trend "Software Outsourcing India", we find that many fortune companies are beneficiaries.
Factors fanning the potentials: Opportunities for India in Offshore Outsourcing:
Human resources and training:

Software outsourcing India being the world’s second highly populated country is a boon by itself. India is proud of the abundance and easy availability of its highly qualified and familiar with English speaking with minimum education as bachelors and masters. The IT professionals are skilled and highly qualified in respective streams are focus and keen on providing performance is a key to success in the field of Software Outsourcing Development India.

Cost efficiency of Software Outsourcing in India:

Cost savings can be achieving by IT outsourcing to India, owing to the wide gape between the personal costs in India and that of the developed countries. Offshore Software Outsourcing to India offers considerable economical benefits for those who are prepared to exploit the advantages of Outsourcing.
Remote Infrastructure Management Services:India can offer management services for IT infrastructure, applications operations, IT security and maintenance. This sector presents great potential through large-value multi-year contracts.

Government Promoting the IT growth:

The government of India is stable for IT, whose policies, economy, GDP growth, taxation, power, telecom, industrial parks & special zones have been helpful in improving the infrastructure as well as communication in Offshore Software Outsourcing Development. The government proves to be a great support for software firms by further providing all the basic facilities required for an outsourcing company to flourish thus playing a major role in contributing to the success and well-being of IT outsourcing to India.

Reliable communication facilities:

Excellent telecom, ISP, and cellular networks are available in all cities & towns in the country. India prides in the reliable satellite and submarine communication links that facilitate good band connectivity with the rest of the world. Thus companies engaged in Software Outsourcing to India, can be in touch with the vendors without any connection hurdles. This plays a significant role in determining the success of Offshore Software Outsourcing to India.

Offshore Outsourcing

Offshore Outsourcing opportunities for India also exists in other fields too Medical Writing, Financial Research, Content Development, Animation, Film, Publishing, Web services, Human Resource, Outsourcing in Recruitment, Training, Education, Nanotechnology and many others. Amongst all these, Offshore Software Outsourcing is an important mainstream business tool to achieve revenue growth, address competitive threats and improve overall performance.

Saturday, December 17, 2005

ISSUES OF SOFTWARE OUTSOURCING

There has been continuous arguments that software outsourcing being cheaper in terms of cost-reduction involved and provides access to superior, real-time serve and specialized knowledge are especially inviting demands from regulators, corporate management and boards. The management principals of the worldwide enterprise are now thinking of security practice for global network services.the risk involved in the software outsourcing is larger in terms of outsourcing, whether the questions involving outsourcers could be trusted? The very idea of giving control of thickheaded but absolutely professional procedure to an outside group- can be a recipe for trouble. How to ensure that the client is provided by optimum services?

The Meta trend of such a structure will definitely continue in a larger bundle of infrastructure with value services, meeting client’s demand. Entrepreneurs need not worry, if they do their basic analyses before approaching things in a sensible manner. Their security could be taken care of, if they follow these analyses:

SOFTWARE OUTSOURCING

It is important for any entrepreneur to go through site-check to make sure that the site is not run by some couple of cheap losers who have beepers in an office suite. If possible, references will also be good.

It is necessary to get updated with the latest publications with news, magazines and tones of sites so that the Information Technology Outsourcing research has sound knowledge about all the grounds of software outsourcing. IT analyzer should have complete knowledge about the market and the trends opted by the large companies to increase their productivity level. Discussing on various issues related to IT will also give better idea about the business bureau.

The entrepreneur of the firm must also make certain that the security provider is essentially honest; the enterprise must ensure that it’s getting the service it needs. The service-level agreement should be strong enough to sustain. There should be complete security check before the agreement or commencement is done.

An idea is considered among the analyst that "the social aspects of internal security threats are possibly migrated with an outsourcer by the reduced social interaction with employees."

Security regarding the insurance and third party suppliers, software licenses, ownership information, contract duration and commencement are important factors to be considered before offshore outsourcing. The outsourcer should have adequate public liability insurance against loss or liability through injury or damage. There is a proper need of an agreement as to which party will hold and which party will administer between the purchaser and other third party suppliers. The third party should have software licenses to provide outsourced services. any licenses currently held by the purchaser that relate to services being provided may need to be extended and so there is a need of flexible contracts to come into existent.

The commencement date of the contract should be decided in prior to minimize the transition difficulties. The length of term will entirely depend upon the nature of the offshore outsource services and the business requirements of the purchaser. The historical roots regarding the security procedures should involve large numbers of financial businesses outsource both its security and transportation security to companies that focus on these services.

System specification, Access and Service level agreements

There should be defined specification regarding the function, performance and availability of the system. The reliability of the service level hugely depends upon the system specification.one is Maintaining standard of quality and second one is Response time regard to system availability.

Surveys and analysis of performance data is helpful in measuring and monitoring service levels such as a system response and job turn around times. The documents could be ineffective unless the purchaser has practical and realistic remedies in the event of non-performance. There should be a review period to cover changing client's requirements and new technology provided by the software outsourcer.

The levels of security about the information provided are required to protect in confidentiality. Unauthorized access to the information will require rigorous planning, implementation and management. Last but not least, for software outsourcing service, we need to ensure that the documents will be protected and confidential and agreed with regard to their responsibilities and obligations.


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.

Friday, December 16, 2005

Arguments for outsourcing

We hear arguments for software outsourcing that Outsourcing faces difficulties with the product quality. They are not able to provide the quality services that could satisfy the consumer’s needs, thus the profits gained are highly risked due to poor quality. In such condition, the vendor company could bring back his firm department or division back home to earn better profits. The decision to offshore outsource is like any of the other business investment decision involving risks. To expand the business organization of software outsourcing or any other business will definitely involve risks. The business when expanded to overseas, always incorporate software technology or to hire new workers. If the company does it correctly, it gains huge profit. Critics of outsourcing are busy debating on outsourcing failures without mentioning the instances of outsourcing success.

Many large businesses go the other way around. They realize the futility in arguing over these matters that outsourcing will lower product quality because if it were true, consumer demand will force firms to shift back to produce the goods or service on the onshore instead of offshore software outsourcing. Many success large companies have been successful in outsourcing and suggests that outsourcing is successful as it increases the product quality, lowers costs substantially or both.

Outsourcing

Economists were tensed and were continually debating on issues relating to the US economy downfall. Yes, the US economy will temporary suffer with unemployment and can bring heavy cost-value to those who lose their jobs, but in the long run the country will be full of employment and there will be surely rise in the US economy.

Policy solutions to offshore outsourcing are also criticized. One of the solutions is to provide training to these workers who seek for their new jobs, but some of the workers are already highly educated with bachelors and masters degree. Retraining them is difficult and may involve cost of education. But providing them incentives could be a way out of it, for the labor the workers really provide in their new field. The incentives could also be outsourced. But if we apply the onshore business ideology, the incentive provided to the workers could be cut-off whereas there will be more expense on the part of institution to pay higher wages to their own employees. Even if the work is replaced by machines, still the workers loose the jobs, and the unemployment prevails in the market.

Our economy has always been going through changes that cause dislocation and unemployment in the workforce hurting some of the Americans. But this does not been that the Americans are not favored but it is rather due to the change in economical strategy worldwide. However, economists do realize that labor is not always perfectly mobilized and some workers may find difficulty in getting new jobs

But however the firm’s motivation for replacing workers by providing training, seem to be identical to the motivation for outsourcing. As and how the company believes in improvising the quality and maximizing the services this could be done through software outsourcing as it allows for lower costs, even if quality reduces slightly or not at all, productivity increases which benefit the economy on aggregate.

A famous economist has quoted some lines on this topic “anything that increases economic efficiency-whether by outsourcing or a hundred other things- is likely to cost somebody’s job. The automobile cost the jobs of people who took care of horses or made saddles, carriages, and horseshoes.” These quotes are so much true and fact, that it hardly allows the space to argue or debate whether the offshore software outsourcing is beneficial or not. It’s a “creative destruction” involving the discovery process where we find ways to produce goods and service involving less cost-effective which in return will make us rich. A lamp of one nation provides light to all across the globe; forgetting its own root which is darkness.

Thursday, December 15, 2005

OUTSOURCING MYTHS AND BELIEFS

A belief that the offshore outsourcing is causing unemployment and will adversely affect the country’s economic growth is like believing the earth is flat! Imposing ourselves to believe the untrue! Such myths in the offshore outsourcing companies are just fake ideologies prevailing around. But the policy makers or the unemployed or those who lost jobs, are bent on blaming their failure on the rising trend of off-shoring and outsourcing firms
Before coming to any such harsh statements and concluding the matter, it is essential to examine the facts of sound economy in order to remove the myth that does not allow the common sense to prevail.
The beliefs about security perpetuate themselves through companies and agencies. They’re viewed as gospel, and in many cases repeated from one expert to another. Most of the time these beliefs whether good or bad are never really put to the test. We believe them because we have often heard about them. In the process, these security beliefs have become myths
Here I would like to address you with some of the familiar myths going across the globe, though I have not tried to be personal, but I rather take the liberty discussing the issues:

Outsourcing Myths

Myth: Off shoring outsourcing is costing American and European jobs
This is absolutely false. The debate whether the American and European countries are running down of job and there is unemployment persisting in the US countries is not at all true. There has been survey done by the researchers that the whiter collar jobs when shifted or outsourced to other nations like India, China and developing countries like Dubai we get the work done at low-wage and professionals can be hired at low rate.
But it was the U.S. Technology which was boom in Informational Technology Outsourcing that has directly contributed to the viability of offshore IT outsourcing which will nowhere weaken due to such developments. It is true that some US workers will lose their jobs, but this painful reality does not weaken the case for free trade. These jobs are not lost due to offshore outsourcing, but as a result of changes in business and economic sectors. Our aim is to make the US labor force and economy more flexible and able to cope with the change.
Myth: outsourcing finance affecting governance and compliance
There was a detailed survey done for more than 200 finance officers and directors, conducted by the economic intelligence unit, and they found that the companies’ ability to maintain governance and compliance had prevented them from outsourcing finance functions. But we might be thinking how can outsourcing a finance function to a third party enhance governance and compliance through outsourcing? More than 70% of those offshore outsourcing companies said it helped them to define business processes more clearly and lead them to a greater clarity and accuracy of financial figures. The significant change in the mindset of companies that has decided to outsource will expect such a trend to continue.
The myths are however discussed earlier, but now let us come to the facts which is surveyed and tested and produced gains of offshore software outsourcing is worth a pool of fortunes!
The benefits are discussed as below:
Savings accomplished at Corporate
There is effective cost savings enjoyed by the US companies. Offshore workers are often highly motivated than US workers and perform better, with their wages being lower when comparing onshore, particularly in low-skilled jobs that lack prestige and suffer from high turnover in the United States. The call-centers and BPO sectors and many Informational Technology Outsourcing commencing India and other developing countries, offshore outsourcing India is providing technologies and implementation in high-value to offshore software outsourcing. Embracing economic freedom by free trade, free labor and free capital fuels- will bring about a stronger economic growth that if we are busy indulging in protectionist measures such as policy restrictions and regulatory hurdles.
Consumers enhance with deal
The researchers found that globally when the consumers benefit as companies by pass on savings in the form of lower prices, the sourcing of components has reduced the cost of IT hardware and software to various outsourcing companies. Offshore trade will add demand to many internationally renowned software and hardware products and buying those products by the offshore business is becoming cheap and is provided at reduced cost. Trade in services will have similar effects too. A software engineer in India will be able to deliver performance at low cost for life-saving technologies which will be available to every needy people. The onshore vendors can definitely save hell out of time to bring out the best.
Increase in productivity and commencing new jobs
It could be seen directly that the benefits of the American Economy will be twice of India due to new exports and cycling with profits to overseas. But all the gains don’t end there. Experience suggests that the corporate savings can be invested in new business opportunities such that the jobs on average will have greater value and this investment will boost productivity and create new job opportunities. Thus the unemployment could be matched at much higher rate by software outsourcing. There will great deal of help in other spheres like education, health services and hospitality, trade and transport and other financial service. As more and more BPO sectors commencing India, jobs in call centers, back-office operations, testing, and some other outsourcing IT functions, there is better opportunity to generate higher value job by redeploying labor and investing of the return capital. It is an ongoing process and will keenly enjoy the wealth and popularity with the growing days. It will definitely help the vendor and the provider to upscale their business with offshore outsourcing. High productivity means higher national income and high standard of living.
Wednesday, December 14, 2005

Testing software influencing software outsourcing

There is a huge demand in Software Outsourcing projects. The better the software projects are taken care by the Informational Technology Outsourcing, there is a rapid growth seen in offshore outsourcing project. The projects we receive may seem to be done but it is not so! The software needs to be tested and ensured that the functions are proper and stable to rely. The project's manager's frustration heightens when the project goes on and on from days to weeks to months, alas! Sometime manifest into years.
The software project’s functionality is not complete, clear, documented and subjected until a formal process is undertaken by the testers in software outsourcing company.testing requirements in software IT sectors vary considerably based on the target market of implementation technologies or developing practices. Each project is unique. The process entirely deals with evaluating the requirements of each new project, to solve the needs and providing the right team and resources to implement the solution.

Software Outsourcing

Testing is essential to develop quality software and to even ensure that the business run smoothly. Businesses and people connected with the same firm are in risk when the company fails to use adequate testing software and in the performance issues or even to determine whether the software meets business needs or not. An important thing when we come out of the system in order to ensure the reliability of the software is to check with the quality assurance; popularly known as QA.
The quality assurance people tend to be the ‘guards’ on an outsourcing project, making sure things are tested and everything is at excellence quality. If they want to play such a kind of role on a software project they would need the quality assurance track, there are courses on configuration management, strategic test analysis and advanced test automation, manual testing, testing technology and so on. These specializations were developed in response to the outsourcing industry demand wherein a volume of people were looking for more focused quality assurance and testing training. There is also a need in software outsourcing industry to update the quality assurance and testing standards and this is the way to produce people who are able to fulfill these new roles.
The software outsourcing will also be benefited by using testing as copious people are now more focus on the project management and development side. The QA labs developing worldwide are designed to be highly practical, and relevant to someone already working in the software outsourcing /offshore outsourcing industry thus bringing revolutionary change in the outsourcing too. The continuous hiring of the QA specialists by outsourcing software companies who are from other sectors of developing now migrating into the testing software. So it is definitely not seen as a core discipline
Wednesday, December 14, 2005

OFFSHORE OUTSOURCING TO INDIA

Offshore Outsourcing to India uses offshore resources and creates additional jobs, increases efficiency, reduces costs, reduces inflation, lowers interest rates, and increases spending. Software Outsourcing challenge is to help transition of displaced workers to other productive activities. It is difficult to ignore the benefits of the IT offshore outsourcing trend, market researchers are predicting a substantial jump in number of companies that outsource work, mainly to India. India keeps its top position in terms of attractiveness in the Software Development India. There is a decrease in the difference with improvements in the infrastructure and the qualification of the labor force, China occupies the second place.
Getting their software research and development done in India, they are receiving top quality work at a fraction of what it cost to have it done at home. IT offshore outsourcing getting done in India is very effective due to its higher labor force.
Software Development India has become cheaper and more reliable, not only multinationals organizations are off-shoring / outsourcing, even small companies with lesser budgets are jumping at the opportunity to build up profit by joining the off-shoring / outsourcing software trend.
IT managers across the country continue to find they can cut their budgets by as much as 40%, simply by sending work to an Information Technology service provider in India. High savings for top quality work, the IT manager gets further incentive for off-shore / outsource IT-related work to a service provider.

Software outsourcing to India

According to the research, cost savings from outsourcing software are much too persuasive to ignore. There are many, highly aggressive software outsourcing firms which is helping companies to dramatically cut costs and show a significant growth in company profits by effective performance.
Offshore Outsourcing Software is saving money and large profits are lure from the business. As well, advanced technological like secure networks, line / storage leasing all contributing to make it painlessly possible for IT managers, to transition work to overseas software development service provider.
The researcher has found out the sob stories circulating about off-shoring / outsourcing are often due to bad processes followed at home rather than the result of off-shoring / outsourcing work. The trend of offshore / outsourcing payroll, HR and benefits work has proved to be extremely successful, shows a clear indication that the process works, and can only gets better and better.
Software Outsourcing firms, are entirely responsible for the outsourced task and enables its clients to focus their time and energy and resources on the core business by increasing sales and market share and by expanding the new markets into the Software Industry. Software Development also takes care about the Quality Assurance, by presenting outsourcing models with total reduction in the costs for its clients. Software Outsourcing accesses to cutting-edge Technologies by extensive skills and practices in technologies and on-hand experiences. The provision of confidentiality and security is also supervised between the clients and the Offshore Outsourcing India for mutual benefits.