software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, May 03, 2006

Slimming down the Offshore Outsourcing

The latest market survey suggests that IT companies from America and Australia are slimming down the Offshore Outsourcing process. But this is with the case of the companies who are of small size. There are many reasons behind this step of such IT Outsourcing companies. Though these companies are on the way of getting back to the onshore services providers, the demand of the process of Offshore Outsourcing is increasing day by day. Research also suggests that IT Outsourcing has been the most required process for the big multinationals. Almost all the size of IT organization are and were heavily engaged in taking the help of the Offshore Software Development companies from India and China.
As the competition is increasing in the market the outsourcing market and industry is also changing accordingly. Small IT organizations are on the way to take the help of the onshore service providers as they are unable to cope up with the overseas service providers. Some companies are there who have faced some dissatisfaction from such overseas service providers and this seems to be one of the main reasons that they are coming back to the onshore service providers. Initially these companies used to take the help of the IT service providers from India and China as the development cost in these countries was very low. But now they find that the cost is also rising in these countries and now they are not finding the same interest in dealing with the service providers from overseas locations.

Offshore Outsourcing Services

They also think that in such Offshore Outsourcing time consuming in the development process is bit higher than from the onshore services. But this assumption is wrong too. One can get the benefit of lower cost, lower time consumption, and flexibility in the services and many more by the Offshore Software Development services. Improper communication is also one of the reasons that they are finding during such process. But in countries like India and China the best communication services are there. Even India is the country with the best English speaking group of talents. Their approach to the market is also different and it also leads them away from Offshore Outsourcing services.
The companies who are taking their hands off from the Offshore Outsourcing process think that collaborative efforts criteria can’t be achieved by Offshore Software Development services. These are some of the excuses that can be heard from the companies who are shifting the jobs back to the onshore service providers. Another reason for them is that they lack in sufficient fund to start up the development center in overseas destination. That also takes them away from IT Outsourcing.
Still one thing is sure that large-scale IT Outsourcing practice isn't going to go away from the market. Though big IT players are now more concentrating on the long-term agreements rather than just small term business relations to achieve their business objectives through Offshore Outsourcing services.