Companies try to bring Offshore Software Development back onshoreMonday, May 01, 2006
Latest news indicates that Foreign IT companies try to bring Offshore Software Development back onshore. It looks like that in the current market the trend of “back shoring” is on the boom. IT Outsourcing companies from the house of America and Australia are now shifting back to take the help of the onshore service providers. But this news doesn’t seem to have that much Wight on the current market of sending the application development job work to the lower cost spots such as India and China. The graph of the process of Offshore Software Development is growing up and up day by day. Though there are some companies who are shifting back their job works to onshore but still the impact of IT Outsourcing is intact as it was.
The reason for these companies to shift their job works to the onshore service providers might be the dissatisfaction from the overseas destinations. Some companies are there in the market that are reversing the direction of the development work and bringing all in-house. No doubt that these companies were doing business by this way because of the benefit of cost cutting, along with the quicker product development cycle ratio. But now somehow they want all these development and other IT services under one roof. Still one thing would remain same that the development cost in their own country is almost five times higher than it is in India or China.
Cost of Offshore Software Development
The main reason for bringing the development job work back to onshore is the rising in the cost of Offshore Software Development service according to one of the executive. Now companies find that the development cost in India and China are increasing gradually. Along with that such IT Outsourcing also has been the more time consuming process. Market threats are also increasing with the innovation in the Information Technology. They feel that their valuable data and information are not safe any more overseas. Communication is also one of the problem is such process of Offshore Software Development. These are some of the reasons that they give for bringing the IT Outsourcing process back to the onshore.
Such companies also thing that such development job work is a collaborative effort among the designers, developers and architectures. By the process of Offshore Software Development such combination is not that much possible that they can get by doing the job onshore. Another reason is the size of the company also matters for them. Because of the insufficient fund they are unable to open an IT Outsourcing center to the overseas destination.
These are some of the reasons that companies were giving who are approaching the process of back shoring for IT services. Though these companies are bringing the Software Development job work back to the onshore but still they are in very much of Offshore Software Development.