Offshore IT Outsourcing: Companies today contract their businesses or part of their businesses to other companies located in foreign countries. This business procedure is called Offshore outsourcing. Offshore outsourcing has become a very feasible trend for companies that are expanding or just trying to reduce their overhead expenses.
Offshore Software development is a kind of outsourcing in which the jobs of software development are transferred to offshore countries. Mainly companies in USA transfer software development job to India or other south Asian countries. In India there are many offshore development companies. In India offshore software development have some advantages and also some disadvantages.
IT Outsourcing is a one of the remarkable medium to let the services and technology move overseas without any hurdles to stop it. It is the outsourcing that can give wings to the creation as we can very well see that by the use of latest technologies and methods India today is serving a large amount of companies placed at various places in the world.
Outsourcing may be a way for a company to lay roots in a foreign country where they may be thinking of expanding. Hence, a company may outsource its business to a IT company in India in order to understand the prevailing Indian market and to adjudge the Indian customer. This may be a ploy to sooner or later open a branch in India. Huge conglomerates that are perpetually expanding opt for outsourcing as a survey method rather than as a method for garnering more business.
one advantage is that the portion of the business outsourced (which may be sales, telemarketing, research, etc.) no longer remains the concern of the IT Outsourcing company. The offshore company hires its own experts and professionals. This creates a constructive division of labor that becomes fruitful to both the outsourcing company and the offshore company.
Like every coin has two sides the outsourcing too has its own disadvantage - One of the most prominent is the exposure of sensitive data to foreign countries. It may not just be the question of data – even secret organizational tactics and managerial strategies may be exposed that could prove to be detrimental to the parent company. There may also be dangers relating to restrictions and dissimilar legislation in the offshore country that sometimes require changes in business policies. IT Outsourcing is also responsible for the distance it creates between the employer company and the employees. This deters the employers from building good rapport with their employees.
But none of us can deny the fact that it is the Outsourcing that can let us meet the unfulfilled requirements and needs of an individual or company whether that very Technology is being used at ones place or not. India has proved as a number one destination for IT Outsourcing for more than 500 fortunate companies.
The big names corporate places like United States, Europe and Japan are looking towards India in respect of the cost effectiveness and high quality software solutions available here. Studies confirm that vendors rate India as their number one choice for Outsourcing. It really feels proud to say that India is being looked at for providing state-of-the-art technology and timely deliveries. India holds nearly twice as many technical graduates as the US, resulting in the ability to give the best quality with timely submission.
Innovation remains the technology industry's most crucial competitive factor, yet most technology companies still lack effective processes to manage innovation investments that drive there success. It is seen that 80% of respondents say technology innovation is more important than ever to their companies' success. 60 percent say their companies have a process to assess the strategic, financial and operational risks associated with innovation investments; however, only 47 percent grade their ability to manage these investments as above average.
74 percent of respondents say their company's CFO and finance organization are now more involved in the innovation investment process; however, only 57 percent say the finance organization adds significant value to the process, and only 53 percent say the role of the CFO is clearly defined. Just 31 percent say that their companies use leading analytical tools to make and track innovation investments. Half of survey respondents are spending more than 10 percent of their revenue on research and development (R&D) spending. Respondents indicate about 30 percent of their innovation investments are ineffective.
It is hence expected that if the need of Outsourcing its benefits and innovation involved in it keeps on rising with the same pace outsourcing will soon be managed as an investment portfolio whereby cost is reduced, & risks are mitigated. The efficiency & performance of an IT department will be measured by the benefits that accrue out Outsourcing in a timely manne
