Offshore Outsourcing Software Development scenario
Offshore Outsourcing Software Development refers to the farming out of work or business processes in a company either partially or wholly to external service providers. Offshore Outsourcing can entail both the use and operation of software & hardware, and also services. Whether those service are provided in the client's premises or at an external business location belonging to the Offshore Outsourcing Software Development vendors immaterial. Certain activities that might be come under outsourcing activity including operation of a development center, an application, a website or security guard service.
Offshore Outsourcing Software Development is a generic term that and often supplemented with additional terms such as task software outsourcing, which is referring to the outsourcing of parts of an operation. Where the services that are outsourced relate to Information Technology security, the terms managed security or security outsourcing services are used. An ASP - Application Service Provider is a service provider that operates individual software or applications or software for example SAP application, E-mail, archiving, web shops, procurement etc. for clients on its own systems. The boundaries between classic Offshore Outsourcing Software Development and pure ASP in practice are becoming increasingly blurred day by day.
Today the offshoring of business and production processes is an established element of organizational strategies, especially in the past two decades, the trend towards outsourcing has become extremely defined, and it’s likely that this will continue into the foreseeable future. However, there are also publicized examples of failed outsourcing projects, where the client terminated the Offshore Contract and resumed control of the in-sourcing.
There are many reasons why Offshore Outsourcing Software Development might appear attractive. As it enables any organization to concentrate on their core competencies, it will provide opportunities for cost-cutting such as operating costs for Information Technology systems, procurement and access to specialist knowledge and resources, it could also free up internal resources for other tasks, it permits the streamlining of internal administration, improved scalability of an enterprise and production processes with enhancing of flexibility and improvement in the competitiveness of the company.
Offshore Outsourcing Software Development Vendor
When an IT supported organizational processes are being outsourced, the Information Technology systems & networks of the outsourcing company and its offshoring service vendor are generally closely linked, so that parts of internal business processes operate under the management and control of an external service vendor. The close relationship with the Offshore Outsourcing Software Development vendor and the resulting dependence on the quality of service expose the client to a certain amount of risk, and in the worst case the business basis of an organization.