Technology is a wide arena, like our outer space in the galaxy. IT outsourcing isn’t much different than any other kind of outsourcing. However, if there is danger that you will bite off more than you can chew, it’s about time to take into consideration. Anyone who has experience in outsourcing knows that there are advantages as well as disadvantages in offshore software development. some tips to cut down risks.
It’s not only about saving the bucks:
The most obvious benefit that tends to strengthen the demand of custom software development to an extensive extent is the cost cutting factor. Selecting the least expensive Offshore Software Development Company often backfires and ends up costing the client much more than initially thought. Offshore vendors are all facing cost pressures from wage inflation. Choosing the least expensive vendor just means you have chosen a company with very little leeway in its profit margins. This will affect everything adversely: hiring the right people, retaining the people who are working on your projects and providing the right resources for people to do the work on your development effort. Successful vendors may be better bets even if they're bit more expensive, given the realities in outsourcing and offshoring.
Hear their Story:
The Story of the provider speaks volumes about their professionalism, their business goals, their achievements, and their credibility. This will help you analyze how much you need to rely on them. How active and involved will they be and how much ownership they will take it helping you achieve your goals. If possible try hearing their story from other businesses who have worked with them. It will help you decide and understand how they practically function. Try to choose a provider you can have a long term relationship with. You will save time starting from scratch again.
Put Communication on high priority:
The basic reason is very simple: you know your business requirements best. Software services companies working in another part of the world can only develop a solution based on the input provided by you. But there will be loopholes unless the Communication is crystal clear. Fairly large projects demands for a dedicated project manager who is a single point of contact of the offshore team and acts as a virtual bridge between the business and the software developers. Agile methodologies are more realistic when it comes to making sure communication is facilitated properly and often with real code sent back for verification, reflection and fine-tuning.
Adhere to high standards:
Lookout for standards the provider adheres to, You need to understand that successful custom software development depends upon standards the provider follows in the process, documentation, coding in short the entire development cycle For example, The most dependable companies use the highest industry standards in testing each aspect of the products they create so that you receive a product that is ready to implement.
Check out their past experience:
The work done in past speaks a lot about the experience and expertise the provider has. It also talks about the domain they have been exposed to and the learnings they have picked up along the way which may help your goal. In theory, offshore software development companies should be able to perform custom software development for any type of business. There will be less of a learning curve, though, and greater chances for success, if the company has knowledge of your industry or a related industry.
Technology Expertise:
The most agile software development companies have an extensive network of specialists but they may be not adequate in terms of the technology expertise your project demands. So you will need to compare not only the domain expertise but also the technology expertise of a provider. Essentially, the provider needs to be competent and flexible, and see their role as an information technology partner who solves your software problems, supports your team, and manages your projects from beginning to end.
Study the Methodology the provider adapts:
We should remember that software development methodologies are all milestones in the continuing evolution of software engineering. This evolution is still continuing and there will be more variants in the future. And, depending upon the nature of the software development project, the choice needs to be different. A compatible Process Methodology accelerates the delivery of high quality custom software. An Agile Process Methodology follows a controlled, iterative development and prototyping process.
About the Author
Over the years, GMI an Offshore Software Development Company has undertaken extensive projects, empowering the wireless revolution with innovative solutions aimed at enhancing user experience. To know more about GMI, Visit http://www.greymatterindia.com/.
Source : http://www.isnare.com/
Showing posts with label It Outsourcing. Show all posts
Showing posts with label It Outsourcing. Show all posts
Monday, January 19, 2009
Tips While Choosing Offshore Software Development Company
Tuesday, September 16, 2008
Offshore software outsourcing. why China and why now?
While many of Britain’s software organisations may now be grappling with concerns over a cooling economic climate, rising operational costs and ongoing skills resourcing pinch-points, the moment may present a great opportunity for China’s emerging software development outsourcing industry to make its presence felt.
Recessions may not be bad news for everyone. Whilst many of Britain’s software organisations may now be grappling with concerns over a cooling economic climate, rising operational costs and ongoing skills resourcing pinch-points, the moment may present a great opportunity for China’s emerging software development outsourcing industry to make its presence felt, challenging the Indian value proposition that has been the dominant port of call for those considering an offshore strategy. All of which could give software development firms and IT management departments pause for thought.
To China watchers, this is not a surprise. The country’s return to the front of the world’s stage by successfully hosting the 29th Olympiad was actually just the most visible public face of what has, behind the scenes, been a major outward facing strategy for the nation’s domestic industries. Enjoying full support from national and provincial governments determined to move up the products and services value chain, China’s commercial and technology growth objectives for the next decade or more are anchored on accelerating beyond being the world’s manufacturing assembly hub, to becoming instead a key player in the 21st century’s knowledge economy. In this overall picture, the software product and services sector can be seen as a linchpin in helping to achieve these goals, through the development of high technology services, product oriented research and export driven international reach.
Read more Article...
Monday, August 25, 2008
Focus on the quality of software projects
Businesses are spending more money on software development as the complexity of applications increases. But as the economy plunges into recession, IT directors will find it increasingly difficult to retain a programming team capable of sustaining complex internal application development. Users need to focus on improving the quality of software development to tackle escalating costs, warns Melinda-Carol Ballou, an analyst at IDC.
An IDC survey of 149 IT departments found that 63% of users were running software development projects that were more complex now than in the past two years. Complexity has been rising due to the growth in service oriented architectures and multicore hardware, which can complicate software development and the increasing use of open source, which involves greater collaboration and co-ordination among software developers.
Downtime arising from poorly tested software is expensive. In one example from the study, IDC estimates the average cost of fixing a defect in a production system at £1,093, assuming it takes 30 man-hours to find and repair the bug.
Read More Article...
Wednesday, June 11, 2008
‘Sense of crisis for Indian software firms is past’
The global IT outsourcing market was returning to normalcy and the `sense of crisis' about the market among the Indian software Companies had passed, according to the joint-chief executive of Wipro's IT business, Girish Paranjpe.
"The deal flow is getting back to normal and funnel is picking up on outsourcing-kind of deals. The sense of crisis has passed. The feeling is that the worst is behind us," Paranjpe told the media on the sidelines of an event at Wipro campus.
While the deal flow from the US and other Markets, to the Indian IT sector was getting back to normal, the market scenario for the rest of the current year would be clearer only in the next three months, Paranjpe said.
Paranjpe, who in a recent management restructuring took over as the joint-CEO of the software major's IT business, indicated that the European Markets also remained stable. "We have not seen any crisis there (in Europe). Nothing seems to have changed," he said of the business in that region.
Wipro also said that the pricing environment on software outsourcing contracts remained stable. "There are no signs of pressure on pricing," Paranjpe said.
About the depreciating rupee, Paranjpe said that "the sharpness in the fall of the rupee" was not expected by the company.
The company continued to expand its manpower based on business needs, Paranjpe said.
"We watch the trends in the market on a quarterly basis and decide on our hiring needs," he said.
On Friday, Wipro launched an employee well-being programme called "Fit for Life" in its campus.
Source : http://www.financialexpress.com/
"The deal flow is getting back to normal and funnel is picking up on outsourcing-kind of deals. The sense of crisis has passed. The feeling is that the worst is behind us," Paranjpe told the media on the sidelines of an event at Wipro campus.
While the deal flow from the US and other Markets, to the Indian IT sector was getting back to normal, the market scenario for the rest of the current year would be clearer only in the next three months, Paranjpe said.
Paranjpe, who in a recent management restructuring took over as the joint-CEO of the software major's IT business, indicated that the European Markets also remained stable. "We have not seen any crisis there (in Europe). Nothing seems to have changed," he said of the business in that region.
Wipro also said that the pricing environment on software outsourcing contracts remained stable. "There are no signs of pressure on pricing," Paranjpe said.
About the depreciating rupee, Paranjpe said that "the sharpness in the fall of the rupee" was not expected by the company.
The company continued to expand its manpower based on business needs, Paranjpe said.
"We watch the trends in the market on a quarterly basis and decide on our hiring needs," he said.
On Friday, Wipro launched an employee well-being programme called "Fit for Life" in its campus.
Source : http://www.financialexpress.com/
Thursday, May 1, 2008
Filipino software companies eye Japan as market for IT outsourcing
Philippine software companies are looking at Japan’s fast-growing information technology (IT) services industry as a strategic market for IT outsourcing despite an expected slowdown in the US economy.
The Japanese IT market is considered the second largest market in IT services industry. Japan’s IT market is expected to turn in 2.3 trillion yen in revenues this year, which would grow to 5.5 trillion yen or billion by 2010. The market has been maintaining rapid growth since 1990.
Local IT companies are now eager to tap this huge IT market, as Japanese firms, such as Fujitsu, Canon, Epson, Denso Techno, System Yoshiii, and NEC Telecom, have already outsourced some of their services in the Philippines.
Industry statistics show that some 4,500 Filipino software engineers are already servicing the Japanese market.
On May 14 to 16, eight Philippine companies will be joining the Philippine participation in the 17th Software Development Expo and Conference (SODEC) at the Tokyo Big Sight. These are: Advanced World Systems Inc.; Alliance Software, Inc.; Astra (Philippines), Inc.; Ayala Systems Technology, Inc.; Imperium Technology, Inc.; N-PAX Cebu Corporation; Tsukiden Software Philippines Group; and WeServe Systems International, Inc.
Read More Article..
The Japanese IT market is considered the second largest market in IT services industry. Japan’s IT market is expected to turn in 2.3 trillion yen in revenues this year, which would grow to 5.5 trillion yen or billion by 2010. The market has been maintaining rapid growth since 1990.
Local IT companies are now eager to tap this huge IT market, as Japanese firms, such as Fujitsu, Canon, Epson, Denso Techno, System Yoshiii, and NEC Telecom, have already outsourced some of their services in the Philippines.
Industry statistics show that some 4,500 Filipino software engineers are already servicing the Japanese market.
On May 14 to 16, eight Philippine companies will be joining the Philippine participation in the 17th Software Development Expo and Conference (SODEC) at the Tokyo Big Sight. These are: Advanced World Systems Inc.; Alliance Software, Inc.; Astra (Philippines), Inc.; Ayala Systems Technology, Inc.; Imperium Technology, Inc.; N-PAX Cebu Corporation; Tsukiden Software Philippines Group; and WeServe Systems International, Inc.
Read More Article..
Wednesday, February 20, 2008
Software licensing costs set to fall
SaaS and SOA mean more power to the CIO's elbow...
Software licensing costs are set to fall over the next decade as IT industry trends converge to give buyers more bargaining power.
Analyst Gartner predicts vendors will find themselves increasingly challenged as IT departments look to reduce software costs as they have done with hardware and services.
In a research note Gartner VP William Snyder said: "Up until now the unique nature of the software market has meant that buyers had very little negotiating power after the initial purchase of a software licence. We expect those dynamics to change considerably over the next five to 10 years giving CIOs and software procurement officers more bargaining power while potentially reducing software vendor profit margins."
Gartner has identified seven major trends converging to change software delivery models, reduce dependence on the giant application vendors and force prices down.
These include business process outsourcing; software as a service (SaaS); low-cost development environments, such as China and India, combined with modular architectures and service-oriented architectures; the emergence of third-party software maintenance and support; growing interest in open source; the rise of Chinese software companies; and the expansion of the Brazilian, Chinese and Indian markets.
Although Gartner says open source won't topple the likes of IBM and Microsoft the analyst believes it will put pressure on traditional software margin structures, particularly in areas such as servers, operating systems, development tools and database technologies.
Gartner also predicts a quarter of all new business software will be delivered by SaaS by 2011.
Synder said buyers need to realise that the pendulum is beginning to swing in their favour with an increasing number of alternatives in the software market.
He said: "We would advise IT organisations to use BPO and open source alternatives to improve their negotiating power with software suppliers as well as employing the emergence of third-party vendors as a means to reduce higher maintenance fees on older versions of software. Costing out the possibility of using offshore skills to build application functionality as web services will also help negotiations with vendors."
Earlier this week silicon.com's CIO Jury found IT departments are increasingly scrutinising the value for money of Microsoft's Enterprise Agreements because of question marks over tangible benefits.
Source : http://software.silicon.com/
Software licensing costs are set to fall over the next decade as IT industry trends converge to give buyers more bargaining power.
Analyst Gartner predicts vendors will find themselves increasingly challenged as IT departments look to reduce software costs as they have done with hardware and services.
In a research note Gartner VP William Snyder said: "Up until now the unique nature of the software market has meant that buyers had very little negotiating power after the initial purchase of a software licence. We expect those dynamics to change considerably over the next five to 10 years giving CIOs and software procurement officers more bargaining power while potentially reducing software vendor profit margins."
Gartner has identified seven major trends converging to change software delivery models, reduce dependence on the giant application vendors and force prices down.
These include business process outsourcing; software as a service (SaaS); low-cost development environments, such as China and India, combined with modular architectures and service-oriented architectures; the emergence of third-party software maintenance and support; growing interest in open source; the rise of Chinese software companies; and the expansion of the Brazilian, Chinese and Indian markets.
Although Gartner says open source won't topple the likes of IBM and Microsoft the analyst believes it will put pressure on traditional software margin structures, particularly in areas such as servers, operating systems, development tools and database technologies.
Gartner also predicts a quarter of all new business software will be delivered by SaaS by 2011.
Synder said buyers need to realise that the pendulum is beginning to swing in their favour with an increasing number of alternatives in the software market.
He said: "We would advise IT organisations to use BPO and open source alternatives to improve their negotiating power with software suppliers as well as employing the emergence of third-party vendors as a means to reduce higher maintenance fees on older versions of software. Costing out the possibility of using offshore skills to build application functionality as web services will also help negotiations with vendors."
Earlier this week silicon.com's CIO Jury found IT departments are increasingly scrutinising the value for money of Microsoft's Enterprise Agreements because of question marks over tangible benefits.
Source : http://software.silicon.com/
Tuesday, September 25, 2007
AJAX alliance recognizes mashups
The OpenAjax Alliance, formed to boost interoperability in the Asynchronous JavaScript and XML (AJAX) realm, has put forth an aggressive road map that recognizes the growing trend toward mashups.
Speaking at the AJAXWorld conference in Santa Clara, Calif., on Monday, Jon Ferraiolo, OpenAjax operations manager and an IBM Web architect, detailed the upcoming release of the OpenAjax Hub 1.0 and the follow-up 1.1 release. Ferraiolo also noted other projects, including the OpenAjax Registry and IDE accommodations for AJAX.
With the hub, the alliance aims to iron out interoperability issues between AJAX tool kits.
Read More article...
Speaking at the AJAXWorld conference in Santa Clara, Calif., on Monday, Jon Ferraiolo, OpenAjax operations manager and an IBM Web architect, detailed the upcoming release of the OpenAjax Hub 1.0 and the follow-up 1.1 release. Ferraiolo also noted other projects, including the OpenAjax Registry and IDE accommodations for AJAX.
With the hub, the alliance aims to iron out interoperability issues between AJAX tool kits.
Read More article...
Sunday, September 2, 2007
Opening up BT networks 'central to development'
BT's decision to open up its network to customers looking to develop their own services represents the next stage of progression in the telecoms industry according to Andy Green, the executive leading a major reorganisation of the former monopoly's internal structure. His task is to speed up BT's transformation into a fully-fledged IT services company.
Mr Green spent five years as chief executive of BT Global Services, the IT division which has acted as the overall group's growth engine in recent times. Under his leadership, the division grew into the third-largest IT contracting company in the world, behind US giants IBM and EDS. Yet last month, the well-regarded BT executive switched to a new role as chief executive of group strategy and operations. He also took charge of two new units – BT Design and BT Operate – focused on improving processes across the whole company.
Read More Article...
Mr Green spent five years as chief executive of BT Global Services, the IT division which has acted as the overall group's growth engine in recent times. Under his leadership, the division grew into the third-largest IT contracting company in the world, behind US giants IBM and EDS. Yet last month, the well-regarded BT executive switched to a new role as chief executive of group strategy and operations. He also took charge of two new units – BT Design and BT Operate – focused on improving processes across the whole company.
Read More Article...
Thursday, August 9, 2007
Outsourcing Software - Go For IT!
Without the outsourcing of their software development, there are many international conglomerates which would be facing dwindling profits and angry shareholders. All the software giants, including Microsoft, Oracle, IBM, and Dell have taken to outsourcing software development in a big way, and their favorite outsourcing partners are Indian companies. Wipro, TCS, and Infosys are recognized as IT companies perfectly capable of handling the outsourcing needs of the big software players on the other side of the globe.
Outsourcing Software Needs To India In the early days of outsourcing, the typical outsourced business project was a non-core operation which was deemed too insignificant to be done by highly paid in-house employees. There were many Indian companies happy to take on these outsourced jobs, but as the Indian workforce became more and more versed in IT management, the Fortune 500 companies bagan to see them in a new light.
Today more than half of the Fortune 500 companies turn to Indian IT firms like TCS and Wipro to design, alter, and maintain their IT systems, and the Indian IT companies have seen their balance sheets and market capitalizations reflect the results. With over two billion dollars in annual revenues, and a market cap exceeding twenty billion dollars, the Indian companies are now in the same league as Adobe and Accenture.
Small Businesses Can Outsource Software Needs As Well
But outsourcing software needs is not limited to the mega-software companies; today there are hundreds of smaller businesses looking at outsourcing as an attractive alternative in their struggle to decrease their expenses and get technological input which their in-house staff might not be capable of providing. When outsourcing their software needs, these companies can choose to turn some, or all of them over to developers in other parts of the world, and may outsource different parts of the same software project to different IT service providers.
Business process outsourcing; software development outsourcing; knowledge process outsourcing; all are IT outsourcing projects which, while they can be done by a company's onsite employees, are simply less expensive when turned over to qualified IT workers in countries with lower wage structures and taxes.
The market for software is going to continue to expand, and software development is the future of the IT industry. Outsourcing software development to proven IT companies in developing countries like India whose workers have established themselves as the equal of any IT workers in the world will keep software development costs low, and the prices of the most advanced software within the reach of the businesses which continue to depend on it.
About the Author
You can also find more info on Medical Outsourcing and Outsourcing Call Center. 1outsourcing.com is a comprehensive resource to know about Outsourcing.
Source : http://www.goarticles.com/
Outsourcing Software Needs To India In the early days of outsourcing, the typical outsourced business project was a non-core operation which was deemed too insignificant to be done by highly paid in-house employees. There were many Indian companies happy to take on these outsourced jobs, but as the Indian workforce became more and more versed in IT management, the Fortune 500 companies bagan to see them in a new light.
Today more than half of the Fortune 500 companies turn to Indian IT firms like TCS and Wipro to design, alter, and maintain their IT systems, and the Indian IT companies have seen their balance sheets and market capitalizations reflect the results. With over two billion dollars in annual revenues, and a market cap exceeding twenty billion dollars, the Indian companies are now in the same league as Adobe and Accenture.
Small Businesses Can Outsource Software Needs As Well
But outsourcing software needs is not limited to the mega-software companies; today there are hundreds of smaller businesses looking at outsourcing as an attractive alternative in their struggle to decrease their expenses and get technological input which their in-house staff might not be capable of providing. When outsourcing their software needs, these companies can choose to turn some, or all of them over to developers in other parts of the world, and may outsource different parts of the same software project to different IT service providers.
Business process outsourcing; software development outsourcing; knowledge process outsourcing; all are IT outsourcing projects which, while they can be done by a company's onsite employees, are simply less expensive when turned over to qualified IT workers in countries with lower wage structures and taxes.
The market for software is going to continue to expand, and software development is the future of the IT industry. Outsourcing software development to proven IT companies in developing countries like India whose workers have established themselves as the equal of any IT workers in the world will keep software development costs low, and the prices of the most advanced software within the reach of the businesses which continue to depend on it.
About the Author
You can also find more info on Medical Outsourcing and Outsourcing Call Center. 1outsourcing.com is a comprehensive resource to know about Outsourcing.
Source : http://www.goarticles.com/
Tuesday, July 3, 2007
Software developers post dynamic export sales
Recent studies indicate that the outsourcing of IT jobs from the West to Ukraine, primarily software development, has become one of the most dynamic segments of the Ukrainian economy.
However, industry insiders say that problems such as a lack of state support and qualified programmers is keeping the country dependent on less lucrative orders from abroad.
The Ukrainian branch of the United States-based outsourcing corporation TechnoPark Corp announced in a Jan. 18 press release that Ukraine's IT industry exports last year grew 60 percent year-on-year to $280 million, while growth of the overall IT market totaled only 25-30 percent.
TechnoPark said that software development makes up 8-9 percent of the entire IT market in Ukraine, but insiders say the lion's share of exports is software developed for Western clients through outsourcing contracts. Still, insiders caution that official figures designating how much work was done in dollars shows only a portion of the true picture, as much of the work is done under the table and remains unrecorded.
According to Ukraine's State Statistics Committee, the software development market in Ukraine grew from about $90 million in 2001 to $260 million in 2005.
But some estimates suggest Ukrainian programmers could have been churning out in excess of $1 billion in software for foreign clients annually in recent years.
Oleg Babykin, projects manager with Kyiv-based PR2 marketing communications agency, said the fact that Ukraine is culturally closer to Europe and that Ukrainian software developers are highly dependable accounts for the attraction of Western clients.
According to Babykin, Ukraine rates third, after India and Russia, in terms of the attractiveness of its IT outsourcing for countries such as the US, Germany, the Netherlands, France, Israel, Denmark and Finland.
But, in terms of the global software development market, which some estimates as large as $50 billion, Ukraine's share is currently estimated to be small, with India picking up much of the big so-called offshore programming contracts.
Volodymyr Kolomiyets, head of analytical services with Softline, a Kyiv-based software development company, said Ukraine has a relatively advanced telecommunication infrastructure and boasts as many as 55,000 highly qualified IT specialists, including programmers, analysts and managers. But, he added, state support is inadequate.
Andriy Bezgubenko, president of the Kyiv-based IT consulting company E-Consulting, said one of the sorest areas of insufficient support is in education.
Bezgubenko said Ukraine still doesn't have enough qualified programmers, and educational institutions are turning out more and more ill-prepared students.
Bezgubenko said Ukraine's IT outsourcing is primarily attractive to leading Western companies due to its cheapness. Ukrainian developers, for example, do not demand medical insurance or unemployment benefits, he said.
A Western customer would normally apply to a well-known Western software developer, called an "integrator, " Bezgubenko explained. And the integrator then hires cheap outsourcing programmers and developers in Ukraine, without the customer's knowledge.
As a result, Ukrainian developers do approximately 80 percent of the work and get only 10 percent of the real cost of this work, according to Bezgubenko.
"If our IT developing industry were good enough, we would see world-renowned software products [being made here]. But I don't see them," he added.
In addition, Bezgubenko said, 80 percent of Ukraine's IT market is in the shadows and thus it's hard to say who's doing what.
Source : http://www.offshoringtimes.com/
However, industry insiders say that problems such as a lack of state support and qualified programmers is keeping the country dependent on less lucrative orders from abroad.
The Ukrainian branch of the United States-based outsourcing corporation TechnoPark Corp announced in a Jan. 18 press release that Ukraine's IT industry exports last year grew 60 percent year-on-year to $280 million, while growth of the overall IT market totaled only 25-30 percent.
TechnoPark said that software development makes up 8-9 percent of the entire IT market in Ukraine, but insiders say the lion's share of exports is software developed for Western clients through outsourcing contracts. Still, insiders caution that official figures designating how much work was done in dollars shows only a portion of the true picture, as much of the work is done under the table and remains unrecorded.
According to Ukraine's State Statistics Committee, the software development market in Ukraine grew from about $90 million in 2001 to $260 million in 2005.
But some estimates suggest Ukrainian programmers could have been churning out in excess of $1 billion in software for foreign clients annually in recent years.
Oleg Babykin, projects manager with Kyiv-based PR2 marketing communications agency, said the fact that Ukraine is culturally closer to Europe and that Ukrainian software developers are highly dependable accounts for the attraction of Western clients.
According to Babykin, Ukraine rates third, after India and Russia, in terms of the attractiveness of its IT outsourcing for countries such as the US, Germany, the Netherlands, France, Israel, Denmark and Finland.
But, in terms of the global software development market, which some estimates as large as $50 billion, Ukraine's share is currently estimated to be small, with India picking up much of the big so-called offshore programming contracts.
Volodymyr Kolomiyets, head of analytical services with Softline, a Kyiv-based software development company, said Ukraine has a relatively advanced telecommunication infrastructure and boasts as many as 55,000 highly qualified IT specialists, including programmers, analysts and managers. But, he added, state support is inadequate.
Andriy Bezgubenko, president of the Kyiv-based IT consulting company E-Consulting, said one of the sorest areas of insufficient support is in education.
Bezgubenko said Ukraine still doesn't have enough qualified programmers, and educational institutions are turning out more and more ill-prepared students.
Bezgubenko said Ukraine's IT outsourcing is primarily attractive to leading Western companies due to its cheapness. Ukrainian developers, for example, do not demand medical insurance or unemployment benefits, he said.
A Western customer would normally apply to a well-known Western software developer, called an "integrator, " Bezgubenko explained. And the integrator then hires cheap outsourcing programmers and developers in Ukraine, without the customer's knowledge.
As a result, Ukrainian developers do approximately 80 percent of the work and get only 10 percent of the real cost of this work, according to Bezgubenko.
"If our IT developing industry were good enough, we would see world-renowned software products [being made here]. But I don't see them," he added.
In addition, Bezgubenko said, 80 percent of Ukraine's IT market is in the shadows and thus it's hard to say who's doing what.
Source : http://www.offshoringtimes.com/
Subscribe to:
Posts (Atom)
Useful Resources:
Software Development OutsourcingOutsourcing Services
