software outsourcing

A blog related to software development company and offshore software outsourcing

Thursday, April 06, 2006

Offshore Outsourcing is not Easy

In present world sending work or jobs overseas for development purpose has been on of the most common and most important activity for almost all the companies in all industries. Every single firm finds this way of business most effective and useful. Still fact remains the same that Offshore Outsourcing is not easy as it sounds or seems. It is one of the most difficult activities of the business. Recently only several problems have arisen, causing organizations like Dell to back off and others to make running call centers and other development services at their own locations a positive part of their client marketing services. Even best experts of Offshore Development also admit that the process of Offshore Outsourcing causes unique problems and challenges for almost all the organizations if minor mistakes are done.

Offshore Outsourcing and Flexibilities

So going for Offshore Outsourcing is one of the toughest decisions. Any company, willing to go for overseas services should think twice and consider all the possible aspects before adopting this business process. Business aspects like is it really required to go for Offshore Development? What to outsource? How much to outsource? Which process to be kept in house or on shore? Which destination to select and what should be the first step? Apart from these questions some other aspects are also there related with the vendor selection process. In present scenario lots of IT Outsourcing is taking place to the country like India. India is leading country for overseas IT services. Country has lots of brand names along with the pool of talented and skilled professionals. Lots of countries are there having their presence in India for Offshore Outsourcing and flexibilities. Still the fact remains the same that sending jobs overseas is not that easy.

In this process risk must be evaluated properly. There are different types of risks associated with this overseas development process. Risks such as the location of the overseas organization, legal and political issues of that overseas country, cost and timing factors, additional costs like training to the staff, transportation cost, and many more are also to be calculated well before commencing any business with the overseas organizations. What is the back up plan with the service providers if something goes wrong is also one of the most important aspects.

Your goal and aim about the company must be clear and after accessing all above issues you should develop the business strategy accordingly for Offshore Outsourcing. Don’t just go for Offshore Development to save the cost of the company. Sometimes it might cost you much more if all these aspects are not accessed well. Don’t be in a hurry when going for such overseas deals. Always take your time and analyze the market well of both the countries and than and only go for Offshore Outsourcing.

Offshore Development can offer significant advantages but it is by no means an easy alternative. You need to be cautious about how it suits in with your company’s strategy. Finding a right overseas partner is not that easy, so give yourself some time and after proper analysis to select the process of Offshore Outsourcing.