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| Offshore Outsourcing
Offshore Outsourcing of software
is simply outsourcing software development to another location.
Clients on the other side of the globe can monitor every development
of the project on a real time basis using high speed data communication
links, ensuring both quality and progress.
From the modest beginning as a
simple cost-cutting concept, offshore outsourcing has gradually
established itself as a successful business model by rendering cost-effective,
sophisticated and highly efficient quality services. According to
a North American market research firm Global Insight, the spending
on global sourcing of computer software and services will jump from
$10 billion in 2003 to $31 billion by 2008, a compounded annual
growth rate of 26%. During this period, the estimated savings from
the use of offshore resources is expected to increase from $6.7
billion to $20.9 billion. The study also found that offshore outsourcing
generated about 90,000 net new US jobs in 2003, a number that is
forecasted to rise to 317,000 by 2008.
Today the offshore outsourcing
trend is a global trend cutting across political barriers, languages
and cultural differences. No matter in which part of the world your
service provider resides, what really matters is an industry-standard,
high-quality service together with decisive cost-advantage.
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Why to Choose
Offshore Development?
In today’s highly competitive
market reduced time to market, emerging technology needs, and the
pressures of recruiting, retaining, and training a skilled workforce
have become a common concern for IT companies. To get the development
work done right at the right time, companies need to look offshore
for partnerships bearing value, economies of scale, and most importantly
a long-term commitment. The most strategic advantage of going offshore
is that the resultant cost-savings (with programming rates from
30 to 50 percent below those in the US/UK) free up client's capital
for new projects and development efforts.
Today, offshore outsourcing is
the optimum formula for organisations to retain and gain a competitive
edge in the global marketplace. In today's high-tech world, the
terms 'onsite', 'offsite', and 'offshore' only refer to the physical
locations. Thanks to the advancement in technology, the terrestrial
and satellite dedicated links, video-conferencing, online chats,
e-mails, and telephones, a dual-shore delivery system works as a
single virtual unit, regardless of where people are actually located.
Offshore Outsourcing Models
For cost cutting, quality and
on-time delivery of offshore outsourcing services to a client, the
offshore outsourcing service provider has been dependent on numerous
delivery models that have evolved since the last decade. A few of
them are listed below:
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Onsite:
According to the onsite business process outsourcing model,
the whole set of processes starting from information gathering
to implementation is done at the client's premises.
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Offsite:
This model of business process outsourcing involves the service
provider, who will have his office near the client location.
The service provider also gives support to the onsite team
and the offshore development activities at the offshore center.
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Offshore:
This model of business process outsourcing involves that the
project-related activity; right from initial study to testing
is done at the service provider's premises. The service provider
will not have any presence at the client's location but the
client will interact directly with the offshore team. The
team members at the offshore location interact with the client
through various communications means such as telephone, fax,
email etc.
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Onsite/Offshore:
This outsourcing model, which is also known as the hybrid
outsourcing model, has established itself as the most successful
and the most popular among the various outsourcing models
that have emerged so far. This outsourcing model gives an
opportunity to the client to make direct communication with
the service provider through the onsite center and at the
same time gives them the chance of enjoying the benefits of
offshore outsourcing.
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Offsite/Offshore:
The Offsite/Offshore outsourcing model provides exceptional
value to clients. In this outsourcing model, the service provider
will have its office close to the client's location and offshore
outsourcing facilities at some other geographical region,
which enables seamless transition and execution of projects
without compromising quality and control for client management.
The offsite outsourcing facility serves as a medium of communication
between the client and the offshore outsourcing development
team.
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Global Delivery
Model: This outsourcing delivery model aims to effectively
spread out and manage engagements and resources across multiple
global locations allowing the service provider to better respond
to dynamic client requirements around the globe at very high
level of speed, quality and value. |
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The
distribution of activities across the various delivery models may
vary from one project to another. This may be attributed to factors
such as effort involved, level of interaction, cultural and time-zone
differences. |
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| Please contact
us to know more about our outsourcing service. |
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