Friday, May 06, 2005

Why Outsourcing is at a Rise

The demand for the quality by the clients for their products to be developed and get the returns for the price paid by them, the software developing companies have to look towards for the specialists. The need for getting higher quality for the product is motivated by the competitors as well to stay in the market. So the companies try to get the best of the resources for themselves at a reasonable price, and in this race they are even ready to go offshore. Availability of highly skilled expertise in development of software coupled with economical labor, India has become the focus of such IT outsourcing.

This can be attributed to the following reasons:

Access the latest technology and the best talent:- Due to the rapid changes in the software industry and with the lightning advances in the field of technology, it is difficult for the companies to keep themselves up to date. Therefore to avoid the cost for upgrading and keep the costs low the companies have to look for the partners. The cost saving in this process is such high that the companies are ready to go for offshore solutions.

Reduce and control costs :- It has been the most important objective for the organizations to get high profits. The cost incurred for hiring of new staff for short-term projects is very high, particularly when there are no subsequent projects that require their services. Therefore the companies are left with the alternative to outsource.
Since the project costs are agreed upon in the beginning so there are no surprises as far as the budget of the project is concerned. Also there is no need for the outsourcing company to invest in technology, software and hardware.

Reducing the Production Time :- If an organization starts for getting a new technology and that too for a real time client project, it can not be doe overnight. Outsourcing the software development helps to get more control over the project time-scale i.e. a well-defined and planned project is delivered within the timeline.
The advancement or the up gradation can be done at the backend but not at the cost of the client project. By outsourcing the software development activities to an experienced and professional software developers, in-house work can be better managed, and day-to-day in-house issues will not affect the completion date of the project.

Improve efficiency of in-house staff allocation :- The in-house professionals can be utilized better if they are given the task of their expertise. By outsourcing of the software projects the in-house personnel can be assigned to current, critical, or ongoing projects since finding time for a new project can be difficult when the in-house resources are being used to their full potential.

Improved quality :- The outsourcing companies have a good competition among themselves and they constantly try to get keep ahead of others. Offshore outsourcing companies embrace quality standards and software life cycles that are more rigorous than those of their customers thus providing highly efficient software solutions for their clients.