software outsourcing

A blog related to software development company and offshore software outsourcing

Saturday, April 01, 2006

Selection of right destination for IT Outsourcing

For the last couple of years, it has been hearing about the advantages and cost savings of sending projects overseas. But the only problem with this is the selection of right destination for IT Outsourcing. Companies are doing lots of and considerable analysis regarding the appropriate projects, the processes and deliverables that suits best to their requirements. American companies expects huge growth in Offshore Outsourcing to the countries like India, China, Mexico, Singapore and some more destinations. At all these destinations hourly charge for labor is less expensive compared to their own developers. A research suggests that more than 3 million IT jobs would shift overseas 15 years as a part of IT Outsourcing.

Considerable points while IT Outsourcing

In present market the competition between the companies is heating up as they develop right shore, Offshore Outsourcing, for the purpose of direct and indirect services for a wide range of IT services. Consulting firms from the house of India and other countries provide the services like increased productivity, 24/7 operation, access to specific talents or skills, time to market and higher quality services. All these are some of the considerable points while IT Outsourcing process. India has lots of brand names and companies who have years of experience in the process of IT Outsourcing. Companies can also use the model of onshore management with offshore development process.
Almost all the companies test the overseas services providers with simple projects like data mining, coding or migration to different or upgraded systems and requirements. These deals are classified as high-profile and low-risk services, so they are considered to be good candidates for high returns on the investment. In this industry billing projects are considered as high-risk and high-profile one and very complex for overseas development.
Lots of software companies are there who really has interest in IT Outsourcing, but they face the problem that which project to be send overseas and which should remain under internal control? Still some projects are there that need the control from both the sides. It is really tough decision to select that which projects are appropriate for Offshore Outsourcing. The catalog of considerations is long and complex. Companies use grids, maps and decision modeling tools to describe which jobs are appropriate for the overseas purpose on the bases of their client’s specifications.
The experts predict that the trend of Offshore Outsourcing is unlikely to end soon. Almost all industry watchers expect it to continue for the next 15 to 20 years. For IT industry higher value jobs like system architects and end user need designers would never cross the territory of the country but apart from that shipping of jobs would increase in the coming years and boos up the process of IT Outsourcing.