software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, August 31, 2005

Offshore Software Development Model

Software quality guru Mr. Humphrey is the fellow of software engineering institute at Carnegie Mellon University. He is also propounder of Computer maturity model widely known as CMM levels. He mentioned that, PSP and TSP benefits software professionals a lot. PSP means Personal software process and TSP means Team software process. There is a very high competition in software outsourcing and offshore software development companies, these both models can help companies to achieve higher quality levels. They help to make software with zero defect delivery system and also help corporate to be more competitive. PSP is an individual level model which help software professional to plan his work, estimate the size and efforts required and schedule the work. It helps to reduce errors sharply and defect rate goes down to less then 1 in 10,000 lines of code. Also, overall productivity increases a lot. On the other hand, TSP helps team members to be self directed, think and achieve team goals and provide framework to support team members. This has dramatic results of executing project with very low defects and high productivity.
Tuesday, August 30, 2005

Software Outsourcing

Indian government is trying to help software outsourcing and offshore software development in all possible ways. National Association of Software and services companies which is also known as Nasscom  has decided to create a new image for Indian software outsourcing companies in world market. Nasscom is marketing India as 'Trusted Sourcing' destination. General impression of Indian software development service in US and Europe is 'low cost service'. Nasscom is trying to create an image of secured and trusted sourcing destination. Apart from marketing and PR relations, they are also trying to implement global practices and standards of securities in the members. Nasscom has also contacted E&Y to create security standard and framework which will be implemented by its members. Nasscom will also create a board which will guide Indian software outsourcing and offshore software development companies as well as BPO companies on security issues. Members of the board will be picked up from important sectors like government, academic and technology companies. This initiative by Nasscom will also include series of events in India and other countries to educate in security related issues. Basic idea of this exercise is to spread awareness among the service providers and user organizations.
Monday, August 29, 2005

Software outsourcing benefits will reduce

Software outsourcing is mainly done for the reason of cost saving provided by offshore outsourcing. But according to some researches, by 2008, cost saving will be very less for well paid software engineering jobs in US and in India. Because, in US, salary increase are minimal against very high salary increase in India. Currently whatever software outsourcing work is coming to India, it belongs to low paying IT jobs in US. They are like computer support or computer operators or software coding. On the other hand jobs like system analysis and design, research and development are continuing to see higher growth in the region of 4 to 5 percentage per year in US. These jobs involve very high knowledge of internal IT system and business process because of which they are difficult to outsource.

Software engineers for systems and applications are also expected to be in high demand and jobs will increase around 6%. Because, in spite of software outsourcing to India, china or Russia, companies will still require in-house customization of software they have purchased. There is also high demand of research scientists and managers. So according to the report of Forrester Research, by 2008, offshore outsourcing advantages will decrease. Cost saving will also decrease as salary rise in US will be minimal against higher rates of offshore software outsourcing developers who will be in high demand. So even if salary difference and cost saving will be there, risk of offshore outsourcing and advantage of in-house development will persuade many companies to take benefit of US workers.
Sunday, August 21, 2005

Offshore Outsourcing and US

US is trying to curb offshore outsourcing by taking steps which can back fire against US IT industry. According to a report, protectionist legislation may result in retaliation. In turn it can affect high tech services of US companies. Report also pointed that, no section is threatened more then high-tech software and hardware industry if US pass protectionist laws. Because, 60% of the revenues of American software companies are coming from outside of US.

According to the report, for each 1 billion dollar export, around 5000 people are employed. These jobs are at risk. Around 20 states are considering partial or full prohibition of offshore outsourcing which will increase the cost of state run programs. According to latest information from Nasscom, there are around 60 bills in various phases in US legislation. But, Nasscom is maintaining its stand that, damage will be under control for Indian software outsourcing industry.

Report also mentions that, job loss in last 3 years is lesser from offshore outsourcing than from weak economy of US. It also mentions that, number of people who have suffered by offshore outsourcing is exaggerated. Although lower end technology services are being lost to software outsourcing companies in developing countries, higher end technology services are remaining in US and will remain in US.
Monday, August 01, 2005

Offshore software product development

Indian software outsourcing industry has grown to become world leader in offshore software development. It has seen many different trends technology wise as well as ups and downs. Latest growth sector in outsourcing is product development. Many Indian software outsourcing companies are now trying to emerge in this niche market and companies like i-flex have already established itself.

Software product development is a very costly and risk attached to it is high. So, now a day, US companies are looking to outsource their product development to reduce cost and in turn risk too. A trend is very visible in software outsourcing for product outsourcing to countries like India and china. However Indian companies will have to mature enough to provide substantial cost benefit as the bottom line else product offshoring can be disastrous.

Why India for offshore product development?

Companies which are going for software product outsourcing, have to consider many factors like whom to select as their development partner. Also, that development partner should have experience of creating successful offshore software product development experience. Because there is substantial difference between offshore software outsourcing service providing and creating a world-class product. Also, project management is very important in offshore product development. That’s why, now a days, many companies are going for virtual offshore development center where they manage people according to their requirements and can implement their own policies and project management. Indian companies are moving more and more up in ladder of offshore service providing and improving their product development and delivery capabilities.