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Outsourcing Offshore: a Forced Trend?
The benefits IT can provide a company, independent of its size, are common knowledge,as are the rapid changes in the IT field. The effectiveness of
outsourcing
is also welldocumented.It is generally held as a good idea to turn IT operations and especially IT developmentover to external providers, as it significantly saves on staff, equipment, training andmaintenance, as well as it allows customers to concentrate more on business. However,the lack of IT professionals in developed countries reached critical proportions, with340, 000 vacant IT positions in the USA alone. This fact makes outsourcing increasinglychallenging and expensive. The solution is, therefore, to go offshore.Offshore development is usually defined as the practice of moving software and other ITwork, such as project analysis, design, coding, testing, and maintenance from companiesin developed countries to software companies in low-wage areas. Nearly all of theFortune 500 companies use offshore development services or have their own branchesset up offshore. Major hardware and software giants like Microsoft, IBM, Apple,Novell, Sun and Siemens have extensive offshore operations. Many of the world'sfamous software applications are developed offshore, either partially or completely.
Offshore operations can provide a lot of benefits, including:
•
Technical Competence: top IT professionals are available offshore and they canwork for you.
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Quality: customers can be assured that their projects will be done on time andaccording to the highest quality and technical standards.
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Costs: customers are sure to save at least 50 per cent of all expenses ifdevelopment is done in-house, not even taking into account the expenses oninfrastructure and equipment.
•
Start-up time: it is usually much easier and faster to start up a project offshorethan in-house. Besides, offshore companies can take projects at any stage.
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Protection: all intellectual property rights will belong to the original company.
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