software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, April 05, 2006

The process of Offshore Outsourcing is harsh

Offshore Outsourcing, the business process has been the main topic of discussion for many companies in several countries. From these lists of the countries America is also one. According to prediction, almost 80% Companies from the house of US would have had high-level debate or conversations about the topic of sending work overseas. This business process has been most common one for the companies from US. Out of this, around 40% would have completed some kind of direct program or would be using near-shore or offshore services and business processes. Though lots of discussion are taking place for Offshore Development services. The process of Offshore Outsourcing is harsh one for many companies. This issue has been a difficult one for the executives to discuss or talk about.

The process of Offshore Outsourcing has been blessings for the companies as it facilitates them with lots of qualitative services with cost effectiveness and better results. Such service providers in Offshore Development are offering the clients an opportunity to have reliable and steady performance at a lower cost and with other benefits. The process of Offshore Outsourcing is taking place in almost all the industries. Though the process which is fetching benefits to the companies, creates problems for the employees because companies are now seeking more and more services from overseas service providers.

Offshore Outsourcing is the dominant trend

Currently companies are in the process to add offshore components to outsourcing contracts and this process is on the rising side as more and more companies are engaging with this service. A survey suggests that, currently Offshore Outsourcing is the dominant trend in the Information Technology services industry. Around 42% of the application management deals now having some Offshore Development components involved. The survey also suggests that the biggest reason for the companies to take the help of Offshore Outsourcing is cost.

According the survey in IT sector, it is found out that U.S. firms are charging $80 to $120 per hour for programming jobs, while the charge for overseas service providers is about $40. This figure indicates that why the companies are going for overseas services provider for even a small application development. It is simple that if you are getting services by paying a third of the price, why should you pay higher price? With the growth in overseas services, companies are also growing along with it and becoming more mature.

Currently China is believed something of a sleeping monster in the overseas services world. China is not quite prepared to compete with India for Offshore Development. China is representing the next wave in the world of Offshore Outsourcing. India’s talent and skill pool, proficiency with English speaking and the connection of the country with U.S. would ensure India a dominant function for years to come.