software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, April 12, 2006

Offshore Outsourcing and some possible Risks

Offshore Outsourcing and some possible risks of the process has threatened the market in a big way. The overall process of Offshore Development might seem and sound to be a good economic decision for several companies and countries but it also has some negative sides along with it. At present the companies are taking help of the Offshore Outsourcing process because of the cost-cutting purpose. But one thing is sure that sending the important and valuable data of the company overseas has the biggest risk of privacy of this information. The companies involved must do the proper market survey about the security issues of their data.
It is marked that frauds are increasing in the market along with the competition. As more companies are taking help of the overseas service providers, some fraud companies are also there who are taking the benefits of such companies. Along with frauds and cheating in the market some other risks are also there. This list of the risk includes the risks like geographical risk, political risk, financial risk, legal risk and many more. So the companies who are willing to take the help of the overseas service providers must consider all these factors and study them well before taking any important decisions. Lots of regulations are also there in the market to avoid the possible risk but they also don’t seem to be enough.

Offshore Outsourcing of IT services

In Offshore Outsourcing of IT services some times you might have to give the access to the overseas staff to your network. It might prove very dangerous and risky if something goes wrong. Giving them permission for the access to your personal matters might cause the data piracy and data theft. There should also be the testing system for the software or program developed overseas as a part of IT Outsourcing. Other risks of virus and data corruptions are also involved in Offshore Software Development services. In IT industry sending development jobs has been the most common way for many of the IT companies. Recently there was a case in India where an agent from the call center had sent the private data of the company to some outsider party for the shake of some money. These issues indicate that how much it is risky to adopt the way of Offshore Outsourcing.
No doubt there are some risks involved with this process, but along with this it also has many positive aspects with it. Advantages like cost-savings, quality of the services, reduction in the work burden, available time to the market, low investment and many more are there that make the companies to think about the Offshore Outsourcing. Still when the word risk comes into the picture all these advantages seem ineffective. Though, the IT companies who are involved with the process of Offshore Software Development are now becoming mature with the market.
One thing is sure that if little bit care is taken during the process than it would definitely bring the expected result for the companies. The process of Offshore Outsourcing is not that much cruel as it seems.