software outsourcing

A blog related to software development company and offshore software outsourcing

Sunday, March 19, 2006

Offshore Outsourcing has made R&D to move overseas

Offshore Outsourcing has made R&D to move overseas as the companies are now looking for more and more flexibilities in the business. As corporate America is becoming becomes gradually more comfortable with overseas development, it has started to send significantly more complicated IT work and involving in IT Outsourcing. Companies like Google Inc. have also started to turn to foreign workers not for the lower rates of the services but for their technological abilities and expertise.

According to news Google is also advertising and seeking to hire highly skilled IT talents and professionals to help at its recently opened R&D facility in Bangalore, India. These talents will be involved in all aspects of Google's IT Outsourcing and computer engineering work such as commencement, research, implementation and operation. City is the so-called Silicon Valley of the country, and there is a large pool of skilled software developers in Bangalore.

R&D has been principal activity to most companies globally. Companies now a day keep careful watch over this procedure, and their most talented people are employed on it. But as overseas services have become increasingly ordinary, companies are now on the way to move up the value chain, with the help of overseas workers in ways that make them a more essential part of the corporate identity globally. Google was open about skills rather than cost factor of its offshore move, while it is found that most companies are also keen to gain the lower rates that help the company to hire more manpower to bring products to market faster.

Offshore Outsourcing and no. of R&D Jobs

Offshore Outsourcing and no. of R&D Jobs that have moved to Asia are more compared to any other continent. It is found that there is a certain amount of certainty about it. Noting that the highly talented Asian manpower and the leading role taken by such countries for the development purpose in cutting-edge services and technologies are attracting the attention of American IT service providers.

Almost three to four years back, American-backed investments in Asian R&D operations have increased noticeably and gave a heavy rise to the process of Offshore Outsourcing. It is also noted that those investments have climbed while IT vendors, faced with a worldwide slowdown in demand for their services, have held back investments in different areas for IT Outsourcing. It is also noted that many of the largest American IT service providers had started setting up plants for R&D centers in China in 1998 to encourage the process of Offshore Outsourcing. Intel Corp. and Microsoft Corp. have also started such facilities in Beijing. Company Intel Corp. has 40 researchers, while Microsoft possesses 200 Ph.D. employees as interns and around 170 researchers.

Some governments also provide financial encouragements to attract American companies to invest in R&D operations in their countries. In this way R&D has got lots of appraisal for the Offshore Outsourcing.

IT Outsourcing companies are now looking to get more and more flexibilities by sending more and more business functions overseas.