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.

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 organizations 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:

 

• 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.
   

• 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.
   

• 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.
   

• 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.
   

• 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.
   

• 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.