software outsourcing

A blog related to software development company and offshore software outsourcing

Saturday, October 07, 2006

Domestic Work or Offshore Outsourcing

Some organizations choose to hire offshore outsourcing vendors for Software Development solutions. Some companies’ also choose to have their own overseas subsidiaries by opening up Information Technology development center. In each case, there is simple reason cost cutting and quality improvement. Managers like to have some safety net as well. Today if they can get fifty resources for the cost of five, and if the Offshore Outsourcing with internet process reduces communication delays, they are still going to go for it. Though, they are more interested in the fact that there are 50 people available, which gives a high safety net at the time of attrition.

If we consider another plus point for Offshore Outsourcing, it is the time difference. Properly coordinated and planned, this could mean twenty four hour work days. However, one cant easily planned such schedule. Till the business masters the requirement to plan ahead, this could result in 48 Hrs. of waiting instead. If your Information Technology managers can not plan for even 24 hours, they should not be managing your Software Development and IT work anyway.

Internal IT department success depend heavily upon how internal Information Technology projects are funded. Many IT departments do not bill their customers. It will definitely result in lack of full participation from those customers. From the customer's perspective, they do not have a choice but to use internal Information Technology department.

Communication might be another potential hurdle, with cultural differences could also play a huge part in ineffective communications. Assumptions, accent and unfamiliar idioms can cause many of issues. Usually, this will result in a situation where everything is written down and goes through several review processes. There are two key factors when considering Offshore Outsourcing. The 1st one is outsourcing. If your core business is not Information Technology, there are few reasons not to outsource it. Just like many businesses using UPS or FedEx for courier requirements, it could make perfect sense to have outsourcing service vendors taking care of clients Software Development requirements.

I think we will see consolidation towards best of both worlds scenario.
  1. Offshore Outsourcing to vendors to communication and ameliorate coordination issues.
  2. Local vendors working closely with clients of former Informatio Technology departments for helping them make sense out of information.
  3. Local service vendors, business analysis and intelligence is going to be a profitable business for the next five years.
  4. Offshore Outsourcing and local outsourcing survive depending on the quality of service & solutions with time to respond.
  5. Local vendors offshoring their needs for delivering goods on cost and time based scenario.
    Customers finally realize the value and the necessity for measuring their return on investment via services - whether it is from a Offshore Outsourcing vendor or from an internal department