software outsourcing

A blog related to software development company and offshore software outsourcing

Monday, May 22, 2006

Question about extreme Offshore Software Outsourcing and consolidation

Experts are raising question about extreme Offshore Software Outsourcing and consolidation. According to the experts aggressive restructuring actions may not produce all the hoped-for advantages of the overall all business process. Just around a month back there was an Offshore Outsourcing contract between Accenture and Unilever. According to the experts Accenture will handle a seven-year applications outsourcing agreement with Unilever to manage all of its Application Software Development, implementation, and support functionality as a part of this Offshore Software Outsourcing Contract. Company Unilever anticipates of savings roughly $700,000 in the first year from this contract.
According to this deal Accenture will be transferring all of Unilever over to a solitary system based on SAP’s offerings. It is considered to be competitive advantages of shifting from a thousand diverse systems to a single service provider’s solution. It is also considered that Accenture will assist Unilever regularize its business processes across Europe and globe with a pan-European SAP system and facility that will reduce TCO and globalize sourcing services. Accenture would also reduce training and development costs and increase the effectiveness of arranging all necessary resources, including staff and other technology services and facilities.

Offshore Software Outsourcing

In current scenario globally Information Technology companies are spending tremendous amount of cost for the integration of the departments and services and it is one of the major IT expenditure for any IT company. Offshore Software Outsourcing is also expected to lessen this cost for the companies. In this deal between Accenture and Unilever it is true that company is to save some certain costs but the original identity of the company may lots. One can not be certain of being Unilever or Accenture because of this extreme Offshore Outsourcing and excessive consolidation procedure. According to the survey consolidation is a huge concern in the organizations.
No doubt IT Outsourcing and consolidation are some of the best possible options to sustain in the competitive market but along with the advantages of the process one should also consider at the downside of Offshore Software Outsourcing services. The major concern of this process is the loss of IT jobs globally. Daily lots of not only IT people but in almost all the industries many people are loosing their jobs because of this extreme Offshore Outsourcing process. In many cases companies are not even taking appropriate and necessary steps for the people who have lost their jobs because of the consolidation process.
In such type of consolidation many times constrains like cultural issues, geographical issues, legal issues and many others play important role and at the end of the day such Offshore Outsourcing deals might fail too. So in this way these are some of the pros and corns of the extreme Offshore Software Outsourcing services.