Showing posts with label Offshoring. Show all posts
Showing posts with label Offshoring. Show all posts

Wednesday, July 18, 2007

Offshore Software Development: Get high return on investment

In this twenty-first century, with the advancement in technology, as new standards are emerging, competition is also equally increasing. And this is making business owners - whether their businesses are large or small- to recognize the strength of changes around them, and adapt to changes in the marketplace. In order to keep themselves at par with the marketplace and get competitive advantage, business owners are now concentrating more on their core activities to get high return on investment.

This thought has made business entrepreneurs to outsource their other services. One of them is Software development service which is now leading the chart among other offshore services. Despite being a complex process, still software development is rapidly gaining favor as an offshore contender because it is a cost effective alternative to developing software onshore. The reason of preference gained by offshore development service is their huge advantages. Like, the companies which are using this service have a huge option of choosing service providers from a wide range of global expertise spread out across the globe where they can get the work done at lower costs by saving out on expensive programs and equipment required for the completion of a particular task. In this way, they can control their IT budget and resources as projects will be taken care off by the offshore development center of the offshore service provider.

And one of the major advantages of using offshore development services is that offshore development companies are backed by a solid team of programmers and developers who are expert in their field. And there is no need to worry about hiring new employees for your software development. As the team is highly focused on software development, you will get your work done in more professional and efficient way. Moreover, this enable you to get your job done at a faster rate, thus will help you to achieve your business goals quickly. And another thing you don’t need to worry is the maintenance services. Now, offshore companies are providing post maintenance services to prove their efficiency and build sustainable relationships with their clients and also technical support with great interest which attracts outsourcers to avail rich development services from them.

If we talk about offshore development center, India has become the leader in offshore service providers and India owns around 80 percent of this market due to a highly trained and professional man power, low labor costs, admiration for software development disciplines and a great English language skills. And if you want to get around-the-clock productivity and profits, then you should outsource your software projects to countries like India.

Michael Lucas is the pioneer author and like to share his experience and ideas with others.If you want any information about offshore development take the help of offshore outsourcing company india or vist: www.vsworx.com/

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Thursday, July 5, 2007

Outsourcing Software Development To India

The advantages and disadvantages of outsourcing software development to India.

Advantages in Outsourcing

Primarily it is cost. The cost of resources are up to 30% of an IT resource in the US or Europe, and probably better qualified. The salary of a developer is a mere $9000 per year. The resources that you are using are likely to incur lower expenses and promise to be more flexible. There are no employment issues. Most Indian employees will be happy to fly economy class and do not demand business hotels. Resourcing is not a problem with 70,000 IT professionals graduating in 2001.

Disadvantages in Outsourcing

Many outsourcing business cases are drawn up on the understanding that the development will be done off site, maximising cost savings. However, those that have done it in practice have ended up onsite. This is due to business understanding; it becomes important to be in the same room as your users. This is particularly the case with web development, where some western businesses have found the Indian view of colour co-ordination somewhat lurid.

There are also significant cultural differences that have to be appreciated. In Indian culture, there is a great deal of respect shown to your manager and their word is rarely questioned, certainly not in public. Communication is much more formal, people call each other by their surnames and call their managers "sir". Many managers have also witnessed an unwillingness to admit mistakes or a lack of understanding amongst Indian workers. All managers interviewed have also found out the hard way that Indians will follow written instructions to the letter rather than seeking clarification or by using common sense. An example where a specification asked for too many buttons to fit on one screen - rather than reduce the size of the buttons, the developers created a second menu screen with a solitary button on it.

Risks in Outsourcing

1. Unproven on Large Scales

It is apparent that the industry is still young and largely unproven. There are, however, many success stories which are fuelling the fire. It is important for business managers to realise that there will not be any perceivable benefit for at least two years. Overall costs will increase during this time as you simultaneously retain local staff while the Indian resources come up-to-speed.

2. Work Permits

Part of the outsourcing arrangements are to have some of the team come and work in the customer's premises for a few months, most arrangements stipulate that there are resources stationed onsite liasing with colleagues abroad. It will be difficult for outsourcing companies to offer onsite resources and retain savings. This could severely disrupt the outsourcing arrangements. Check your contracts!

3. Stability of the Offshore Countries

Many of my work colleagues are predicting the worsening of relationships between India and Pakistan. Fearing the worst, a nuclear war would have a severe impact on any economic activity in India, in spite of the centres being far away from the disputed Kashmir region. While it is hoped that conflicts such as this will never arise, India is still relatively unstable. The riots in Chennai two years ago caused many lost days of development time and forced several firms to up and move from the region.

Companies must ensure that the outsourcing companies have disaster recovery and business continuity plans in place, or in the worst case should prepare for the eventuality of non-availability of their outsourcing partners.

About the Author:

For further information on software outsourcing, offshore outsourcing and offshore software development, http://www.a1technology.com/ .

Article Source: www.iSnare.com/

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