Friday, January 27, 2006

Offshore Software Outsourcing in Current Scenario

In Offshore Software Outsourcing it is found out that many companies believe that subcontractors are inefficient in offering their services, at both places, within their own countries and to overseas. But still this is not the real fact regarding all the countries, particularly for the country like India. Over the past decade it can be seem that lots of companies globally have built strong business relationships with the Indian companies in Information Technology industry and enhance their competitiveness. Now the trend is also changing in this industry as the competitiveness is increasing in the market. Expectations from the side of the clients are becoming more and more demanding. Evolution has also taken place after the revealing of the Software Publishing Model which is driven by the wide differences between the development cost and the marginal selling and distribution cost of the software. In short the process of Offshore Software Outsourcing is getting lots of innovation.

In the Offshore Software Outsourcing a cost advantage lies in overseas process by the labor pool i.e. Hardware Side of the industry. In early 1980’s the overseas development was done with the limited extend like for the basic hardware components purpose only. But now the whole process of IT Outsourcing is offering much wider range of goods and services to the clients worldwide. Government is also helping the service offerings to promote the economy of the country. Service like BPO (Business Process Outsourcing) is also now on the edge of redesign and more complex system replacing the older one. In Offshore Software Outsourcing now more and more jobs and projects are sent overseas because of the low-labor cost effect. Many Australian and American based IT companies prefer to hire overseas talents for their projects as the labor cost in their country is higher compare to other countries. That’s why more and more Offshore Software Outsourcing is taking place from these countries.

Offshore Software Outsourcing

The process of Offshore Software Outsourcing is mostly done because of the advantages like lower cost of labor, flexibilities in the work, availability of manpower as and when required, no any additional costs like HR or Admin and many more. It is also not necessary that all the projects sent overseas would make the cost advantages. Proper planning and right strategy is also must to get the success. Proper communication is one of the most important parts of the overseas dealing. Other factors like traveling cost, training and developments cost and many more are also to be analyzed well before commencing the Offshore Software Outsourcing deals.

Offshore Software Outsourcing in current scenario is totally different than it used to take place in the past. Now more and more awareness is coming in the market at the use of the business process is increasing. Clients and vendors are also becoming more aware about the whole business process. With the innovations in technologies the needs and demands of the clients and vendors are also changing in the process of Offshore Software Outsourcing.