Friday, March 14, 2008

Software Outsourcing Issue

Outsourcing software development has turn out to be a leading business practice in which a company contracts every or portion of its software projects to the outsourcers. Outsourcing software development is one of the most crucial & questionable topic. Most of the issues are about the information that Offshore Software Development is available at low costs in countries which provide outsourcing services. The market research predicts that there is high competition in IT industry. As a result, countries like India, China, and Philippines have become the choice of many developed countries for getting outsourcing services. India has become the largest destination in Software Outsourcing because of the reason that it possesses highly skilled professionals offering services at low cost. Because of this large amount of work is transferred to India to get it done at low costs & at the same time achieving high qualities results.

Many IT/ITES companies are now looking for overseas service provider. It provides great independence to the companies in areas like time, money and management. It lessens the management responsibility from the companies at great amount. Companies outsource non-core activities and focus more on the core business activities. Sending the non core activities overseas provide the companies the advantage of high profits & quality. To achieve these results company should also have well skilled management team.

Though Software Outsourcing has many advantages as mentioned above, but it also many concerns involved with it that needs a lot of consideration. The appearing profitable deal of Offshore Software Development can sometimes lead to losses, if company does not carry out the deal accurately. Continuous monitoring along is highly expected to make the win deal. A lot of security issues are also there that should be taken under consideration at the time of making important decision in dealings. Companies should also make it certain that they could give out the best resources to achieve the most wanted product. Companies involved in offshore outsourcing should always revise their resources and information achieve the fruitful results

The increased requirement of outsourcing services is to understand the client requirement so that they don’t look for other options in the market. IT is one of the most flourishing sectors in the market today with increasing need of low cost and high quality services, which forces the company to opt for Software Outsourcing services.

To conclude, we can say that as IT sector is flourishing day by day the need of outsourcing is also increasing though it involves certain issues that have to be taken care of.