software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, January 31, 2006

Global IT Outsourcing

IT Outsourcing and communications are allowing the world to innovative businesses of all sizes. But the real thing is that how can Information Technology maintain strategy by competitiveness? The sector continues to grow after the disillusionment with IT Software Outsourcing, the number of organizations have brought their operations back in-house. According to the International Chamber of Commerce is expected worth of $24 billion by 2007, up from $1.3 billion IT outsourcing services.

Today in IT Outsourcing, even the smallest e-commerce organization is an international player and by default being a global company, it would mean as a big organization. Information Technology has played a significant role in opening up the world’s borders like the internet, electronic-mail, video-conferencing and agreement on standards for global communication.

Although Offshore IT Outsourcing is an increasingly popular choice in international market, but some warns that it is not always the cheapest and safest option for business process. More and more people are looking for cheaper labor costs and think they are getting a bargain. But they waste money by international flights for the cost of sorting out problems abroad. Earlier it was preserve of big organizations, now everyone is doing the same thing, globalization means world can seek skills wherever they are found in greatest supply. One of the manifestations of this has been the phenomenal rise in IT Outsourcing.

IT Outsourcing

The financial solution make a lot of sense for many of organizations to do the IT Outsourcing process, by systems development work, but that can cause headaches. The problems are that despite what the Offshore Outsourcing firms say that their business process is not your business. If a supplier meets its service levels, many Offshore Software Development organizations feel they have fulfilled their contractual obligations and do not need to offer any more.

When one moves for IT Outsourcing relationship, it needs new capabilities at home as well. The managers at home need to learn certain things about negotiation and contracts management. And often these are the skills that chief information officers don’t posses in them for offshore business. You don’t need to be big for global, there are some of very small firms that founded within the last 18 months, that have part of their IT Outsourcing run in the country like United States, part of their development done in India, and they are based in the UK. And this is going to become very common in future.

New set of skills required while dealing with an IT Outsourcing department on the other side of the world. That is so-called soft skills which always seem to be in short supply among IT-professionals. For successfully IT Outsourcing systems development the work one need is to be very good at writing water tight specifications.