software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, April 21, 2006

Impact of Offshore Outsourcing

Impact of Offshore Outsourcing has been the most discussed term globally over the period of last few years. The process has both the side, negative and positive. It also has been the most common issues in almost every country and on every occasion. Lots of surveys and researches are going on about this most discussed term by lots of IT Companies. Companies who are on the opposite side of the Offshore Development process has the perfect reason to go against the process but if you give a keen look at the process you will find that the process of Offshore Outsourcing has lots of good impacts on current competitive market. Though, both the sides, positive and negative makes good points but at present it are worth saying that the process has lot to give to the companies.
Form this surveys it is marked that countries like America who is deeply involved in this process of overseas development services is also suffering a lot because of it. On the one side this way of the business provides lots of benefits to the companies but on the other hand it also creates lots of problems like job loss and many more in the country. One thing is clear that America is suffering from unemployment issues because companies are now sending more job works beyond the territory of the country. Still the arguments suggest that lower prices for goods and services fetch lot more benefits to consumers and also creates job opportunities by increasing the needs for goods and services.

Business of Offshore Outsourcing

Unemployment is bound to take place in any of the country if the companies from the country prefer to go for Offshore Outsourcing. In the case of America the fact is the higher labor cost especially in the IT Industry. Developers from America are very much expensive with compared to India. IT companies from America are deeply involve in IT Outsourcing to the destinations like India and China as the labor in these destinations are almost 4 to 5 times less than the local charges. It not only reduces the overall development costs but also give the flexibilities to the companies who are in the business of Offshore Outsourcing. In countries like America High-paying knowledge and manufacturing services and jobs are very easy to outsource to India and China. Still with such overseas help lower paying jobs and services must not cross the territory of the country.
Actually we require a way of decision that if the advantages of the process of Offshore Outsourcing are worth of pain or not. Though, in the long term, American employers will be contending with labor some where else, stressing American wages. Still it is desired that the labor cost should go down to reduce the Offshore Development process. High pay ration is the only big problem that leads the companies to take the help of the Offshore Outsourcing vendors.
If Offshore Development to India and China will continue, these benefits to these countries would really create problems for the local talents in America. Both the countries will get the benefits because of the both higher wages and falling prices in America. America should take some step to set the right impact of Offshore Outsourcing.