software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, April 11, 2006

IT Outsourcing and trend

IT Outsourcing and Trend represents that how fast the business process in the IT Industry is changing. Increasingly, it is argued that the position and functions of Information Technology (IT) is moving from its former status of functioning as an "enabling" function. It was the function where business strategies and planning could be faster and effectively realized by the companies to that of a true driver. It was also the time where an organization's strategic positioning is pushed by deliberations alarming information technology and services. Companies use to take the help of Onshore Service Providers instead of Offshore Outsourcing. But with the increasing demand and changes in the technology along with the competition in the market IT Outsourcing has also faced the change in the trend of the business.

IT Outsourcing and Services

Ultimately, the aim of most IT projects is to advance and increase the competitive position of either their company or client’s company. No doubt that in the past time also there was the trend of IT Outsourcing and services but it was limited and up to some extent only. But changing environment and other changes in the technologies enforced the companies to select the way of Offshore Software Development. Though, the demand of the clients could be satisfied by onshore services but cost was one of the reasons that lead the IT companies to seek for IT Outsourcing. However, return on investment (ROI) is always the most immediate part in the any service industry equation.
The important question here to ask is that is technology really a competitive stick and therefore a necessity to survive? If you just glance in today’s competitive world you will find the answer Yes. An acceptance of this declaration would escort investors to the termination that even during an economic slowdown; IT budgets of the companies should not deal. But increasing demand and latest technology has made companies think for the help of the overseas service providers. The bottom line in today’s world is that if you are not taking help from the overseas service providers especially in Software Field, you will have tough time.
Now more and more Software companies are getting exposed to the IT Outsourcing and from this big names even small applications are also crossing the boundaries some times. India and China along with Philippines, Russia and some other countries are the most commonly demanded destinations for Offshore Software Development services. These are the countries having a vast pool of IT talents and skills that provide quality services with the most economic prices. These factors leads these countries as the best destinations for IT Outsourcing and services.
Over the last five years Software Companies have changed the way of the business process. Sending development work overseas has been the most common and frequent function for these companies. In present scenario, for these IT companies IT Outsourcing is the Key Business Process.