Tuesday, November 21, 2006

Offshoring IT Services

Offshoring can be defined as relocation of business processes to another country, especially a country overseas. This includes any business process such as production, manufacturing, or services.

Offshoring is defined as the movement of a business process done at a local company to a foreign country, regardless of whether the work done in the foreign country is still performed by the local company or a third-party. Typically, work is moved due to a lower cost of operations in the foreign location. Offshoring is sometimes contrasted with outsourcing or offshore outsourcing. Outsourcing is the movement of internal business processes to an external company. Offshoring is similar to Outsourcing when companies hire overseas subcontractors, but differs when companies transfer work to the same company in another country.

Frameworks to Manage Offshored Projects
Offshoring, offshore outsourcing, of IT Services continues to be the focus of attention in business and technology management circles. While business leaders and IT executives debate on the merits and strategic implications of offshoring, technologists and Project Managers continue to focus on trends and technologies to address the changing needs of businesses, and ensure that the systems are maintained to satisfy user needs. Offshoring of Application Development and Maintenance [ADM] involves extending the best practices of Software Development Life Cycle [SDLC] and Project Management to address the challenges of time and space, and coordination of onsite and offshore teams.
The book "Offshoring IT Services : A Framework for Managing Outsourced Projects", attempts to examine at some of the management imperatives of offshoring with a specific emphasis on managing and executing projects and initiatives using an Offshoring Management Framework [OMF]. The Framework, while taking a vendor neutral stance, borrows extensively from publicly available sources including articles, whitepapers and corporate websites. The framework is focused on four key areas: Governance, Management, Execution and Communication.