software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, April 05, 2006

View of Offshore Outsourcing

View of Offshore Outsourcing indicates about the pros and corns of the overall process. Relocating some operations or job overseas has been the smart economic move for several organizations. These companies are finding lots of out of this way of the business. Though, they also know that the same procedure of Offshore Development has the other side also. The fact is that all the organizations are not thinking well and everything through before commencing such overseas deals. And as the jobs in America are lost gradually, the matter of sending jobs overseas has become a hot one for the discussion. But the question remains the same that is Offshore Outsourcing really so bad or harmful to any of the countries who are opposing this process?

Several American organizations have shifted their headquarters overseas in an endeavor to save money by preventing various U.S. taxes and higher labor expenditure. It is market that U.S. is sending lots of Software Jobs overseas as the development cost is very high in their country compare to the destinations like India and China. Apart from IT Industry several other industries are there too, where the cost is very high along with the development process. Several American organizations have also started sending lots of jobs overseas, shifting numerous onto foreign soil. When these companies were asked the reason for that than the simple and only reply was the higher labor cost in their own country. Same qualitative development work could also be obtained by sending them to the overseas destinations with almost fifth of the onshore cost.

Offshore Outsourcing moves

Though, such Offshore Outsourcing moves may seem pretty exciting and attractive in the initial stages but lots of efforts are required to gain the best out of such overseas deals. Let us think in the different way that if an organization is really saving cost by shifting jobs overseas, and is thereby expanding shareholder wealth, is the shift of the company such a bad idea? The ultimate thing is that the company should think before relocating the jobs to the Offshore Development locations. Such Offshore Outsourcing also requires lots of market experience along with research and knowledge of the market and its trend. In many cases it is also hear that the companies have suffered because of the unexpected costs of the overseas dealings. So Offshore Development is not that much easy job.

Still the figure suggest the around 90% of companies who have chosen the way of Offshore Outsourcing did save money. But these companies have done lots of research before entering into such critical deals. These companies also found the process of Offshore Development bit tough in the initial stages. Such shifting includes the tough jobs like internal resources and external resources. Internal resources include the moral of the employee, communication and many other factor while external factors include the offshore partner and his credit in the market, geographical factor, cost and quality factor, political factor of the selected Offshore Outsourcing destination, cultural issues and many more. To make a successful deal all these factors should be studied well.

These are some of the views of the overall process. Overseas dealing has many positive and negative aspects along with it. Proper know-how of the process of Offshore Outsourcing is must to make a successful deal.