software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, April 14, 2006

Offshore Outsourcing may change with Merger Process

According to news Offshore Outsourcing may change with Merger process. It is marked that more and more companies are now in the process of merger and acquisition rather than dealing by the way of Offshore Development. Companies are now on the way of changing their business practices by developing relationships and presence in the overseas landscapes. The latest issue in the last month of March is the best example of this merger process where an American consultancy Darwin Partners announced their planning of merging with the Chinese high-tech company Suzoft. Company stated that with this merger their business will get vertical expertise in the competitive market of Offshore Outsourcing.

Offshore Outsourcing Companies

This merger of these two companies indicates that now Offshore Outsourcing companies don’t want to keep just professional relationships with their overseas partners, but they want something more along with their presence in the overseas country. This process of merger helps the companies to put fewer efforts to establish into the newer destinations. Offshore Outsourcing Companies with the support of the local firm would be able to understand the onshore market, culture, demand and many other aspects of that country in the best possible way. Merger of two companies provides both the companies equal benefits in the long run. As far as the above two companies are concerned Darwin Partners used to take the help of the Suzoft for Offshore Software Development and other IT Outsourcing functionality. While on the other hand Darwin Partner will offer Domain expertise and Financial Services.
In such cases merging companies get agree to join together and provide something unique to the market. By this way of business both the companies can easily cater each others local market and find their strength double. This is the new trend that is currently prevailing in the market. It looks like that overseas business dealings are now on the changing landscape. The offshore organizations require up-front business and Information Technology consultants with vertical proficiency in order to get beyond the practices like application maintenance and development and others. This way both the companies can get the benefit of increment in the overall revenue. In such cases both the companies agree for the 50-50 partnerships and put the equal amount of efforts to precede the deal.
In Offshore Outsourcing process cost cutting is generally the main aim for any of the companies, while in the case of the merger both the companies highly focus on cost savings. Wipro and Infosys from the house of India also have their presence in United States for consultancy businesses. By such efforts from the companies their valuable clients also get extra facilities.
In short mergers of the two companies seem to be the substitute for the process of Offshore Outsourcing.