Offshore software outsourcing is particularly booming since many companies have benefited with the engagement model. Learn how here...
Offshore outsourcing Services involves a system of collaborating with an offshore external organization which carries out the tasks of the client organization along with one of the business roles. Usually the service which has been outsourced for performing is delivered by the offshore company but delivered in the client’s country. A company in US for example usually outsources HR operations to an offshore company for recruiting candidates in the US. Offshore outsourcing helps client organizations to cut down on costs and concentrate on core activities or business areas. High-quality services are mostly delivered at lower operating costs through the offshore outsourcing model.
There are many companies who are participating in the outsourcing revenue model and there are particularly three types of outsourcing which are in vogue: business process outsourcing (BPO), knowledge process outsourcing (KPO) and recruitment process outsourcing (RPO).
Organizations outsource parts of its overall business process. For instance, a software development company might outsource the testing process to be done by an offshore company. Most companies in the US who find the economy tough for growth resort to offshore software development while some resort to outsourcing their customer support division or the payroll processing to save on operational costs. The offshore countries can get the operations done at nearly half the price and since they have a vast resource pool, the experienced developers can be hired at a measly price. Both back office and front office operations are outsourced today.
In recent years, offshore locations have introduced the concept of virtual workers who can halndle different types of workers. Technology outsourcing services are quite common nowadays as most offshore locations like India, China and Russia are having a ball of a time especially in the IT sector. The leading country in providing software development services is India which has been consistently been able to handle huge projects with reasonable success. Philippines is one more country which is delivering several short projects on a timely basis.
It is important to pick up the right outsourcing solutions provider since most of the tasks which need to be carried out are not a one-time project but a regular process which when discontinued will get the clients in a fix. They might face huge losses in between switching outsourcing providers. Most companies have tried the outsourcing model and succeeded but there are some which have incurred huge losses.
The numero uno country which has provided superb outsourcing services has been India because the country has vast amount of resources and many English-speaking professionals who can communicate easily with US people. China and Russia have achieved tremendous success but their language dependency makes it difficult for communication although the projects involving software support services and call center services have been handled with great flair by most of them.
It is important for offshore companies to deliver value other than the cost to achieve success. They should help their clients to retain a competitive edge over their rivals in the field.
Here are some of the salient benefits of offshore outsourcing basically for Custom Software Development:
- Reasonable operation costs and great ROI
- Timely deliverables
- Access to specialized services especially in non-core sectors and expertise
- More time to focus on core tasks and business functions
- Huge savings on investments in infrastructure