Monday, November 12, 2007

Domestic Work or Offshore Outsourcing

Best quality & time management are the two hot topics in the market. The companies are rarely interested in spending time on non core activities. A huge sum of money has to be invested for domestic work.

People believe that software development is easy. One can easily gain the understanding of the problem that needs to be addressed by talking with the people familiar with that technology & then design a solution to meet those needs & deploy it in the customer’s environment. But along with that there are certain issues related to the software development that the companies have to resolve.

Company must meet the following needs if it is not interested in outsourcing:

1. Search for qualified talent

2. Conduct training programmers for the employees.

3. Pay employee salaries & incentives.

4. Provide the employee with best infrastructure.

5. Conduct regular meetings

6. Provide them holidays.

All the factors mentioned above require a lot of money & wastage of time. To make sure that the company gets the right talent, it has to form a recruitment team for selecting employees. As a result of which many experienced people have to leave the work which may result in poor production. So many companies in US & UK today go for outsourcing.

Companies opting for outsourcing have to pay 15 times less salaries to the employees in India as compared to American employees which are a sure benefit & at the same time they get the best quality product. Outsourcing to India provides companies with a pool of talent which are already trained as various colleges are conducting campus connect programmers to train the students with the latest techniques.

For companies abroad outsourcing is better idea, they don’t have to waste their human resources; the only things they are concerned with is search the best-quality service provider & pay him for his work. Thus, the tension & wastage of resources is reduced for them & they concentrate only on core activities. Outsourcing has proved boon for these companies.