software outsourcing

A blog related to software development company and offshore software outsourcing

Monday, October 30, 2006

Increasing demand of Offshore Outsourcing

With the increasing demand of Offshore Outsourcing from UK at a rapid pace, IP protection and IT Outsourcing backlash is gaining voice in the country. NASSCOM, authorized body for an Information Technology industry told that the recent changes in laws of United Kingdom point to protectionism taking root in the country for Offshore Outsourcing processes. By protection of employment, the revision for the transfer of undertakings regulations indicate some signs of protectionism taking root in the UK that have been quite open to Offshore Outsourcing, said president of National association of software and Services Organization.

For transferring of undertakings protection of employment increasing demand of Offshore Outsourcing Regulation, the new law by UK passed in last week mandates companies to take over the responsibility of finance for employees that lost their jobs due to Offshore Outsourcing. The department of trade & industry in UK said that transferring of undertakings protection of employment regulation is applicable with those employees that are shifted from United Kingdom to offshore countries under a new Business Process Outsourcing service provider. It sought to give some of security for workers of companies when it was acquired by another firm.
Earlier these regulations were applied for manufacturing companies, but now it has been amended for consideration to outsourcing services of Software and Information Technology.
Though it won’t impact as bigger as one have think but the regulations on Indian companies does matter with some concerns. It’s small step from the government to regulate and control, Mr. Karnik said earlier.

Today, we could see businesses of Offshore Software Outsourcing in India becoming more competitive with international market, using IT as a key enabler. The survey itself indicates the trend among Indian vendors of IT Outsourcing for increasing focus towards domestic market. In India the user industry is also outsourcing parts and entire IT infrastructure from specialized service vendors that require world class standards, and best practices. Increasing usage of Information Technology and adoption within the country is enhancing competitiveness in Indian economy and the user community.

With the increased Offshore Outsourcing adoption by user companies in the country, at both ends operational & advanced levels, the phase of ongoing investment from the industry will need a gestation period for exhibition of full potential. An industry of Offshore Outsourcing will need continuing the existing focus with sustaining of growth curve by investments and adoption. One hopes that the government will become a major Information Technology services user through the program of e-governance. The regime and favorable taxation policy will give a boost to greater usage of IT for the country with benefits and efficiency, productivity & employment.
Wednesday, October 25, 2006

Effective Offshore Outsourcing

For many years Offshore Outsourcing is being practiced, yet the entire development methodology has not stabilized in complete manner. Further, all the companies involved in the process are very much satisfied than it looks like. This article does not talk about only Information Technology infrastructure and Offshore Outsourcing. It is restricted to Software Development Outsourcing too. Finally, the tangible benefit accrued with the results of offshore outsourcing is still more elusive with recent times.

While working with the Software IT Outsourcing industry, some people have been witnessed with some practices and consequences in it. This article discusses some of the points, which causes and set some guidelines. It’s equally relevant to customers as well as Offshore Software Outsourcing service provider. Although, now days everyone knows the actual benefits from Software Development Outsourcing.
  • Software Development is initiated due to some internal business related needs.
  • SDO is done because of its impossible skills, scenario and time or inefficiency of cost of budget for in-house work.
  • This implicitly significantly means that the offshore outsourcing service provider would provide cost, skills, benefit and time without compromising the quality of Software Projects.
  • Maintenance is also one of the long-term tasks, so it could best do internally in spite of externally. The Outsourcing process should also cater to these needs and prove as best & cost-beneficial in the sector.
  • There must be some mechanism for proving the Offshore Outsourcing did, that lead to benefits in all expected segments.
  • Technology changes as people changes; the end product should be well manageable and free of problems and errors.
Genially we think that there are only few of parties that are involved in Offshore Outsourcing process, which are the service vendors and customers. However, things are mot simple like we think. Here the word ‘party’ shows the entity that is distinct objectives to be played in the process. For making things clear, one has been listed with the base objective with each party. As one can see, there are so many companies involved & every one of them has different types of agenda. Due to this, the Offshore Outsourcing may not be optimal as it would be.
About the actual process of Application Development the end users are completely ignorant. They don’t devote adequate and attention time towards the important process of development. Also for timely execution the response time of users for resolving the question for accepting crucial phase design for Software Outsourcing project work.
Friday, October 20, 2006

India Software Development is still on the top

India Software Development is still on the top in spite of the price raise in the country for overseas software services. In present market of Offshore Software Outsourcing competition is increasing due to increasing demand of the overseas development services. Demand of the countries such as India and China are also increasing for the cost lower development cost and better quality development services. Though cost seems to be rising in India Software Development still it could maintain its position on the top. According to the latest survey, India is still the attractive most offshore software development location globally.

There was a survey conducted recently for the cost effective software development services in Information Technology Industry. The outcome of the survey indicates that India might still offer the same cost effective development services for another 5 years or so. No doubt that cost seems to be little rising in the country for similar overseas IT development services but along with that quality of the development work is also improving constantly. Country India has outsourcers such as Wipro, TCS, Satyam, and many others where the salary structure is raising slowly. The effect of the salary rise can also be marked on the profit margin of these companies.

Demand of India Software Development

As mentioned earlier that Software Development India offers the higher quality and cost effective development services, MNCs such as IBM, Accenture, and Capgemini are escalating their business in the country to gain more profit. These MNCs are also posing tough challenges to the local Indian IT Brand names for cost effective Offshore Software Outsourcing services. This is also one of the reasons for the increasing development cost in the country. Survey suggests that on average 12-15% increase in the salary structure is noticed every year still the demand of India Software Development is intact for lower cost software services. The main reason is the constant improvement in the productivity that includes the reusable modules that make the development services more efficient and effective.

Again the survey indicates that salary structure for the experienced professionals have been rising while it is remained almost same for the entry lever employees. India also has a wide pool of young and highly fluent in English speaking language developers that attracts the overseas investors to think about India Software Development. Again software companies, having smart business process can easily diminish costs of the services without compromising with the quality of the work. These companies also have bigger scope of implementing the best men power mix to cope up with the rising cost issue. India Software Development produces large no. of IT graduates every year that helps the country to give edge over its competitor China for better Offshore Software Outsourcing services.

This is just a small summery about the ability of Indian Offshore Development Center. It also indicates some of the reasons that why India Software Development is highly popular globally.
Monday, October 09, 2006

Problems arises while Software Development Outsourcing process

There are many of common problems that arises while doing the Software Development Outsourcing from one country to another.
Them primary thing is that all users are not very much clear cut with their exact requirements. Due to unspecified requirements given to Software Development Outsourcing service providers with rough and very sketchy writing materials and diagrams. If one has to clear and specific with the idea of the development, the document should detailed, clear-cut, and without of any complicated ambiguities.
Because of some problems, Offshore Software Outsourcing service providers are not in the right kind of position to understand the better scope of development work. It’s very simple to have phrases that are mentioned below for clients needs:
  • Generally it requires to know the period of warranty, whether it’s for just one year, more than one or not at all. What does this mean? Money is also expected some time as a part for the warranty time. Due to often users of software that tells frequent changes and clients need Software Development Outsourcing service vendors to implement it without of any additional cost during that particular period of warranty.
  • After completion of the software project it must be implemented with some minor changes as a part of the software development process work. But the main question is that what does include in these changes? And the authorized person to decide whether it is the minor change or major. The main question is that, will software outsourcing service provider being paid extra money for those changes or not?
  • Without of any coding work it should be clearly configurable. The one more important question is which parts should be more configurable? Would it be really acceptable in case of increasing cost substantially?
  • Within fifteen seconds all reports should be generated. This is simply not possible for yearly, monthly, batch processing based reports. Sometime it could cause harmful problem during the acceptance of user.
  • Under condition of the stress it should perform well. But what kind of stress and the number of concurrent users, how much data to be used, and the actual type of users that needed.
The Software Development Outsourcing vendors don’t have access for user departments that is quite understandable.
Process of software development outsourcing
End customers are completely ignorant with the outsourcing model of software development. Generally they do not provide adequate attention and time for such software development process. Time of response is the crucial thing for timely execution of a software project by users for resolving the questions and the acceptance of design too.
In the process of Software Development Outsourcing for a fixed base cost proposal; customer means it should include to done everything. So it is winning for clients to reduce the cost base. By the process of Offshore Software Outsourcing service provider to do work that is definitely out of scope.
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
Thursday, October 05, 2006

Outsourcing in manufacturing industry

For a long time in manufacturing industry, focusing on the core business and outsourcing the rest has been one of the most central guidelines. At the time of starting the model-T Ford production by Henry Ford in the beginning of twentieth century, everything was manufactured in bulk and a large factory area that had iron core processing at one end and the other produces finished cars. Along with technological development, increasing clients’ needs and increase in number of competitor, the cars soon became more complex and need the continuous development of many technologies. Therefore the point came for the automotive manufacturers at which they had to make decision either to make or buy. They started with buying of more and more raw materials and parts from specialized suppliers. The Outsourcing trend concerned not just parts and materials.

Such organization have also increasingly do outsourcing for services, of which product development and logistical services has been the most important. Some suppliers, for example seat five manufacturers, started to deliver ready-made sub-assemblies directly to the automotive manufacturer’s assembly line. Some have total responsibility for the manufacturing and development of the entire system, for example braking systems and electrical harness. To enable efficient outsourcing process, the OEM-original equipment manufacturers have adopted modular techniques for product design. The end product has been divided into modules that could be outsourced & efficiently assembled in the original equipment manufacturers’ factory.

The role of Offshore Outsourcing has gone through certain number of change. According to a one study outsourcing had moved markedly from single performing functions to efficiently and reconfiguring processes with newer ways. Rather than asking what your organization can do, the question is why not going for Outsourcing process. The firm should do only those activities where they could develop best-in-world capabilities.

The trend is catalyzed by the better offerings from the Offshore Outsourcing service providers. They offer more flexibility, more value, with integrated services than any internal sources could offer. The relationship is becoming collaborative and strategic. Outsourcing service provider might take responsibility of a whole process; let us see one example for process of spare parts, including planning, then purchasing, inventory management, distribution, transportation and clients support. This will definitely reduce the number of third-party logistics providers that clients have to deal.

Now take a look at the retailing industry, we can not find an Outsourcing trend similar to manufacturing industry. Today, retailers are still trying to manage by themselves with ever-increasing range of products. The Offshore Outsourcing scope is confined to shipment and warehousing. There are certain examples that functions inside the retail store and concerning minor product categories, but it seems to be done without an outsourcing strategy.
Wednesday, October 04, 2006

Offshore Software Outsourcing Considerations

Offshore Software Outsourcing to India is now became one traditional trend followed by all the Corporate giants for generating and producing high-value of services and solutions that heavy enough to maintain their pocket with currency. It is also expected that Offshore Software Outsourcing service provider follows the path of their partner's business processes and some of deadlines, even though employees are technically perfect as compared to another companies. In terms of how they work and when they deliver with the burned fingers, they insist outsourcing staffers as part of own corporate body. Regarding understanding of business requirements there are cultural and fundamental disconnects, or in other words one can say it might get back a software project that does some things good but not the main things by process of Offshore Outsourcing.

For making good relationship and maintain it with success in Offshore Software Outsourcing, e-College advocates close different integration for each and every executive at the two different organizations. The software project developer and manager should remain closely aligned as co-workers with their counterparts at both the firms all times. These organization uses expensive contractors, many of whom were not interested in converting the full-time employment due un-completion.

He points out that the railway has not lain off a single worker, so there is one more obstacle to be considered. From employees BNSF Railway did not hear any familiar grumblings to send the offshoring work.

Reason not to Offshore Software Outsourcing

For mach organization call centers are traditionally a prime center for Offshore Outsourcing of their work. The one thing that e-College does not Outsource and says it never will is their work of call center. This company’s e-College runs a private label, in-house help desk service to view strategies of business. Value proposition is part of quality maintenance by student experience, customer service is paramount to any company and the firm is best equipped for providing those kinds of services.

We could also end this issue by noting that offshore software outsourcing is a winning formula- experimented by the big-segments of the industry and very convincible for the small firms as well. One thing is sure that there is some recipe for successful Offshore Outsourcing.

Leaders of Information Technology underscore a set and forget their approach as convenient; leaving a partnership unmanaged is a death knell to offshore software projects. Using scalable, repeatable processes overseas partners should be able to deliver tasks in huge volume that lead across the board savings for many of customers. An Information Technology department considers its offshore partner as an extension of their staff minus excessive overhead, with staff managed and project results measured accordingly successful Offshore software Outsourcing.
Tuesday, October 03, 2006

Custom Software Development and Defining Requirement

Custom Software Development and Defining Requirement indicate the relationship between the terms development work and defining the exact requirements. Requirements specification and analysis, impact at every stage of the development lifecycle. It covers all the important steps including design and coding to testing and deployment of the Software. To get the successful and desired outcome, defining and managing requirements is the most important step to be taken care off at the time of the Custom Software Development services. Because defining requirements have such influence downstream, it's no wonder that so many researches cite incorrect, incomplete, and mess up dew to improper specification of defining the requirements. It is also considered as the main reason for the failure of the project.

Now a days companies use different models for defining the requirements of the clients. Many companies use role-based and team development model and platforms to identify the requirements in better way. Due to the latest technology innovation, it has become easier to integrate proper system into the product development lifecycle to define client’s requirements. Though software developers have better opportunity to manipulate the process by which requirements are gathered and managed in proper way.

Custom Software Development Projects

There are some certain steps that must be followed to deliver the exact requirements for the Custom Software Development projects. There are some practical strategies and suspensions available that one can apply to get more involved in the procedure of defining and handling software requirements though. It is always better if a developer can be involved in defining and managing the requirements. It will help in avoiding constant changes that probably push back the process of Custom Software Development. In most of the cases of project failure, the improper definition of the requirements plays key role. In most of such cases, client is not clear with his exact software requirements and that leads the project to the failure.

It is also marked that constant changes in defining requirements lead to excessive rework on Custom Software Development project and applications that fail to realize full customer satisfaction in many cases. Breaking down requirements in to different stages might be considered as one of the alternatives to define specific software requirements. Collective and collaborative efforts might also help in defining key project issues in better way. We can say your definition for the requirements should be good enough to let the development team to proceed with basic understanding of the Custom Software Development work. It will reduce the percentage of the risk and would provide better idea about development requirements to the team.

This is just a basic issue that how defining and managing the initial process should take place in Custom Software Development.