Software outsourcing and offshore software development

Friday, September 02, 2005

Software outsourcing and offshore software development is the trend and current flavor of business. But there are very few trends in information technology which are as controversial as Software outsourcing and offshore software development. Although there is a business risk associated with outsourcing, many businesses are turning up to offshore low-cost software outsourcing service providers to increase their profit margin and it has become an accepted trend in today’s business. Many corporations are very desperate to cut the cost and increase profit. They try to cut their information technology expenditure any way without understanding how offshore outsourcing works and what to outsource and what not. There is no doubt about how software outsourcing can increase the bottom profit, but many companies are getting hurt by hastily following the boom of offshore software outsourcing bandwagon. Because they need to evaluate the big number of outsourcing vendors. According to Gartner, currently one out of every four outsourcing deal is failing. Many research reports mention that half of the outsourcing agreements to date are terminated or changed because; they failed to meet the original objective of the business. So every company should get involved in outsourcing after evaluating its requirements and outsourcing vendor carefully. As software outsourcing is increasing, the salaries of software developers are also increasing. That is making many companies to find more alternative destinations. But alternative destinations are not enough matured to provide proper outsourcing services.

TatvaSoft – software outsourcing and offshore software development company providing offshore outsourcing services from India.