software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, January 04, 2006

Offshore Outsourcing and Challenges

Offshore Outsourcing has been the most preferred way of the business in today’s world. Big multinationals in the past that used to stay away from the process of offshoring are now also using this process in every step of the business. The process of offshoring is involved with the numbers of benefits, and this process is done for the main benefit of cost cutting. Cost cutting is considered to be the main aim behind the process of offshoring along with the other benefits. But it is also a fact that the process of Offshore Outsourcing can be much more expensive than one can imagine.

Offshore Outsourcing, the process which involves numbers of benefits, is also the process which includes lots of challenges. It is not only one way process that one will always gain the benefits out of this process. Lots of risks and challenges are also involved in this process. Improper planning and lack of experience or knowledge might drag the company to the heavy loss in the business. There are lots of hidden costs which are attached with the process of Offshore Outsourcing. Challenges like data privacy, threat of unemployment, heavy loss because of improper planning, finding wide range of expertise and many more expects which are to be taken care off. Clients should survey the whole scenario before entering into the contract of the offshoring with the vendors. As far as his data and informations are concerned, the client should make it sure that his data is going to be safe and not going to be misused by the vendors. The process of Legal contracts and terms and conditions should also be taken under care while entering into the Offshore Outsourcing process.

Offshore Outsourcing

One more challenge associated with the process of Offshore Outsourcing is the threat of loosing the jobs in the internal environment. Employees onshore may feel that the process of offshoring may have adverse effect to their position in the company. So all the aspects of the offshoring process should be clearly discussed with the employees, that why the company is moving towards the process of outsourcing. Proper communication will help in reducing the internal dissatisfaction. Another challenge involved in this process is to find the proper expertise from the market. Company should first understand that actually what are they needs and requirements. And on the basis of that they should try to find the proper expertise from the market, which suits best to their requirements in Offshore Outsourcing.

Well and proper planning is again one of the elements required in Offshore Outsourcing. The process should meet to all the terms and conditions as per the schedules. Timely completion of the project is also must. Extension in the project may lead to another cost to the company. It is also better to have bigger projects as a part of offshoring rather than having the short term of projects, because one would not be able to gain the cost advantage as it takes time in the initial stages of the process. In this way there are lots of challenges involved in the process of Offshore Outsourcing along with the benefits.