software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, April 28, 2006

Offshore Outsourcing is getting mix reviews from the market

The latest survey about Offshore Outsourcing is getting mix reviews from the market as the people have different mindset about the overall process. Some companies are finding sending the development job work overseas as the best practices while others have total different opinions about the process of Offshore Development. Even this also has been the most talk about and discussed issue in one or more countries. As every coin has two sides, the process of Offshore Outsourcing also has positive and negative effects. This is the reason that it is getting mix reviews from the market. But in the countries like America and Australia where IT Outsourcing to the countries like India and China is on the boom have totally different mindset.
In such countries IT companies are finding this process as the best business practice as the development cost in their own country is very high. While the development cost of IT projects and services is very low in India and China compared to their own country. So the IT companies here are making lots of cost savings by sending development job work to the overseas locations in India and China. While the local people are facing the problems of the unemployment as IT development job work is going over the boundaries of the country. They are not very much happy by this business process and lots of problems have also taken place because of that.

Process of Offshore Outsourcing

Government and lawmakers are also taking some harsh steps to prevent the process of Offshore Outsourcing as the ratio of unemployment is touching the sky gradually in this country. Economy of U.S. is also improving because of it. Along with that President George Bush had also encouraging the local companies for Offshore Outsourcing when he was on the tour to India. He also believes that limiting the process of IT Outsourcing or Offshore Development may hurt the country’s economy in the long term. This process is not only beneficiary for U.S. or Australia but lots of other countries are gaining the advantages because of this. But ultimately the people from these countries are suffering.
If you ask any of the IT companies in U.S. or Australia, they would give only one reason for Offshore Outsourcing to India and China as the lower development cost. According to them the service providers in their own countries are almost 5 to 6 times expensive than India or China. Offshore Development services are very much helpful for them. They also said that they would continue doing the business in this way. While the professionals and employees say that Offshore Outsourcing services are taking the jobs away from their country and employment is increasing gradually so the process should be banned in the country.
In this way the Offshore Development is beneficiary for the companies while the employees in United States and Australia are suffering a lot as Offshore Outsourcing is taking job away from them.