Wednesday, January 31, 2007

Types of Outsourcing Services

Did u know what is outsourcing? Outsourcing is the process of contracting with another company or person to do a particular function. In top most cases almost organizations outsource their product or services in some way. Typically, the function being outsourced is considered non-core to the business.

Outsourcing services
can be categorized in two categories: BPO Outsourcing & KPO Outsourcing. The IT/BPO Company, for example, might outsource the services related to the information technology, business processing outsourcing and knowledge processing outsourcing. Typical BPO outsourcing services are like as multimedia & animation, bookkeeping and financial services, business consulting, CAD/CAM, call center, data entry, DTP, typesetting, Handwriting services, HR services, internet marketing, legal services, medical billing, proofreading, editing, software & technology, transcription, web design & web development and writing & Translation. Some of typical KPO services are like as knowledge processing outsourcing services, intellectual property research, animation & simulation services, data research & analytics, litigation Services, medical content & services, pharmaceuticals services, writing/content development services and database development services.

The outside firms that are providing the outsourcing services are third-party providers, or as they are more commonly called, service providers. Currently, outsourcing takes many forms. Organizations still hire service providers to handle distinct business processes, such as benefits management. But some organizations outsource whole operations. The most common forms are information technology outsourcing (ITO), knowledge processing outsourcing (KPO) and business process outsourcing (BPO). The challenges of outsourcing become especially acute when the work is being done in a different country (offshore), since that involves language, cultural and time zone differences.

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Monday, January 29, 2007

Outsource to India or Die! - myth or reality?

The brutal truth revealed in the article "Outsource to India or Die" in the Economic Times has created yet another controversy. It is no myth that outsourcing to India is redefining survival strategies for most companies across the globe - read on to know why.

Microsoft, Intel, IBM, Cisco, Yahoo, Amazon, Google, GE, Reuters, HP, Dell Oracle and many more Fortune 500 companies find outsourcing to India works! Here are seven powerful reasons why you cannot ignore outsourcing to India.

Why Outsource to India?

Outsource to India for technological agility, quality, flexibility, cost control, time-to-market and competitive advantage.

1. India is a talent-rich country:
Outsource IT talent

2. India exports software to 95 countries around the world: Outsource expertise in global methodologies

3. India enjoys the confidence of global corporations: Outsource high quality brain-power

* 82% of the US companies ranked India as their first choice for software outsourcing
* Bill Clinton applauds India's brainpower: says Indian-Americans run more than 750 companies in America's Silicon Valley."You liberated your markets and now you have one of the 10 fastest growing economies in the world," said President Clinton.
* Bill Gates says India is an IT superpower: strikes strategic alliances with Wipro and Infosys to develop applications on the .Net platform
* Jack Welch opens $130 million Technology Center in Bangalore, GE's largest R&D center outside the US: celebrates 10 years of GE Medical Systems in India

4. India Offers Multiple Advantages:

* Outsource to stay competitive. Leading companies worldwide realize that to maintain stay ahead, they need to reduce costs, provide the best quality, use the latest high-tech skills, and be reliable and innovative
* Outsource to a mature industry with world-class systems, systems and quality
* Of the 23 software companies in the world that have achieved the prestigious SEI-CMM Level 5, 15 of them are Indian. India will soon have the highest number of ISO-9000 software companies in the world, according to Nasscom.

5. India has state-of-the-art technologies for total solutions: Outsource turnkey projects

Offshore assignments have moved up the value chain - from data entry to large and complex turnkey projects of 200 to 300 person years.

Applications include:

* E-Commerce
* Business Process Re-engineering
* System Migration
* Maintaining Legacy Systems
* System Integration
* CBI Application

"India, US sign deals worth US $6 billion"

"India bid to boost to bilateral economic ties, with Prime Minister Atal Behari Vajpayee in the US, India and the US have signed five commercial deals worth US $6 billion for projects in power, e-commerce and banking sectors."

6. IT is a major thrust area for the Government of India:

* IT is one of the Government of India's top five priorities.
* The National IT Task Force submitted its 108 point Action Plan to promote IT in the country. The Government of India has approved the plan and is in the process of implementing it.
* A separate Ministry of Information Technology was set up to expedite swift approval and implementation of IT projects and to streamline the regulatory process.
* Information Technology Act 2000: The Information Technology Bill that was passed in the Indian Parliament in May 2000, has now been notified as the IT Act 2000.

The IT Bill brings E-commerce within the purview of law and accords stringent punishments to "cyber criminals". With this, India joins a select band of 12 nations that have cyber laws.

Software Technology Parks of India offer world-class infrastructure and various incentives and concessions to encourage foreign investment and promote software development in India eg 100% Foreign equity is permitted and approved under the Automatic Route delegated powers to The Director STPI, tax holiday until 2010, etc.

7. India has a stable government and is one of the world's 10 fastest-growing economies:

* Fifty years of democracy
* Indian service sector contributes a massive 51 per cent to India's GDP. Within this category, the most promising is computer software export, which grew at an amazing rate of 40-50 per cent every year during the 1990s.
* Excellent investment potential: India ranked third in Asia, just after Japan and China, in terms of investment potential for the next 10-year period in a study by the Export-Import bank of Japan.
* Privatization of the infrastructure sector
* A convergent network is being created by the intertwining of the ISP, Telecom, VSAT, Cellular and networking sectors. India's large business houses and Public Sector Units are working towards creating greater bandwidth availability.

Now that you have seven powerful reasons why outsource to India to survive, why not take the first step and make the decision?

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Friday, January 26, 2007

Offshore Outsourcing to India is most popular management practices

Offshore outsourcing to India is most popular management practices for today’s world. Generally it is only spurred by the cost reduction factor, with maintaining of quality is one of the reasons for consideration of Offshore Development. Most clients that involved in this process are unaware that Offshore Outsourcing to India does not just offer cost effective solutions, but also bring gin value addition by improving quality and the productivity. However, the cost advantage can see over a period of time in offshoring venture that involves some type of committed relationship and understanding between involved parties.

So I would like to suggest that one should better understand the basic requirement for Offshore Outsourcing before making the important decision. With the initial investment in training, infrastructure, and other primary may believe that the cost advantage is promised like the illusory pot of gold on the other side of the rainbow in sky. In this process cutting of cost is definitely one of the significant reasons for Offshore Outsourcing to India, but one should not forget that the cost advantage may not be show effect immediately

The main difference lies for the scalability of Indian service vendors, is their strong focus for quality control and the delivering wide range of services experience. It continues to explain the process of major software vendors from India that has developed more of international services delivery in their counterparts in other nations. India's workforce in Offshore Development also offers the largest pool of technical skills through out the world, and nation’s colleges add 188,000 IT-engineering graduates annually.

Offshore Outsourcing organization

Offshore Outsourcing organization frequently has to make substantial investments service in Information Technology equipment, that facilities. Offshore Outsourcing to India is about quality and value addition with cutting in cost. The fact that so many organizations continue to outsource along with the some volume of work is pouring into the nation that came into recognition of the talent and expertise possessed by Indian vendors. Eventually the objective is to use Indian vendors as strategic Offshore Development partners, both to augment IT and software outsourcing capabilities and to help, plan, design and implement new projects.

Indian organizations also realized that only cost can’t sustain the nations current dominant position for Offshore Development industry. Along with there would be savings and these savings is for great value addition. Usually this is not the primary goal when deciding to go for offshore vendors, so with the creativity and talent in India came as a surprise for many. Most who Offshore Outsourcing to India realizes the quality control and value addition after the process of relationship begins.

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Wednesday, January 24, 2007

Offshore Outsourcing and Flexibilities of the overall process

The process of Offshore Outsourcing is taking place mostly because of the two main reasons. 1. Flexibility and 2. Lower Cost Advantage. These two are the reasons because of which more and more companies are now using this process. Flexibility is really a wide term to be explained in the overseas dealing world as it applies for the several views of the relationships for different services. Every one defines this word in different terms and as per requirements. Still every one’s needs and requirements are satisfied by the flexibility of the Offshore Outsourcing process.

Through the process of Offshore Outsourcing the speed of the operation has also increased. In this process it has been easy for any one to analyze the capability of his vendor and get the work done. More and more scopes are also emerging as the process is rapidly covering the market. Now more and longer term of relationship is taking place between the clients and the vendors instead of the professional approach. Such relationships start with smaller projects and by checking each other’s capabilities it turns into long lasting relationships in Offshore Development projects. Right and Proper size availability is also possible in Offshore Outsourcing deals. In such cross working scenario total use of the equipments should be done as a part of the flexibility.

Offshore Outsourcing

In Offshore Outsourcing process more flexibility like scalability is possible too. Scalability is one of the most important aspects of the business cycle in today’s professional environment. It is better to know the capabilities of the vendors so that the client would be able to make the full use of the resources from the vendors and would get the full return on his investment. The vendors also should be punctual for timely services. He also should match the deadline of the projects. Flexibility can be in terms of the changing conditions too. Such changes should occur instant and should be analyzed as a part of the relationships between the clients and the vendors in Offshore Outsourcing process. The reasons for these changes to occur might be the overall change in technology, environment or may be different

In today’s world of Offshore Outsourcing all the equipments and services can be hired as a part of the flexibility. Sometimes it becomes very problematic for some organization to set up the plant in another country, place the proper management, and find the local talents and all these functions. But by this business process way all can be gained by the glimpse of the eye. You even are not requiring remaining physically present in the country where you want to start the business. All these and many more desired facilities and services can be available as a part of the flexibility of the Offshore Outsourcing process.

In short as the demand of the Offshore Outsourcing is increasing the facilities are also increasing. Market has been much customized and one can easily get what he want as a part of the service with the best possible cost.

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Tuesday, January 23, 2007

Offshore Outsourcing business in India

Offshore Outsourcing business in India is expanding not by the day, but in minutes we can see the outsourcing industry gaining momentum success. Accenture, the consultancy and Offshoring Company announced India as most active developing market in Software Development, playing a key role in international delivery model and network.

The American based global Information Technology services and solutions companies, plans to invest Rs.810 million to expand its operations in India, including its human resources, over the next five to seven years. During the expansion plan, that includes setting up of India Software Development centre, which will be in addition to the existing international services centre in city like Bangalore, with 150 IT Software professionals. This organization also has long-term partnerships with NIIT and Tata Infotech for Information Technology and business process outsourcing services by Offshore Outsourcing process.

Unisys Software projects across the verticals and horizontals, including banking and financial services, transportation by airlines, government, public sector and media partners have collectively more than 500 people dedicated workers in their segment for these software projects.
Chairman of Accenture, who was on a visit to India, said that the growth had been so rapid that the organization doubled its size of workforce to 11,000 in the past year. The Indian Software employees today constitute 10% of the 1, 06,000 workforces through out worldwide and it might move in internal functions for India, like Human Resource, knowledge management capabilities and financials. He also said that it continues to see demand and will leverage the talented people here in India to expand the operations for Offshore Outsourcing process.

Software Outsourcing

Along with the rise of headcount in the segment he also added that BPO operations have risen in the past few years. Business Process Outsourcing gives great opportunity for vertical expansion as it is fast expanding sector. Apart from India Software Development center, is the most aggressive growing; centers in the Philippines and China which are growing rapidly as well. Still they lack aggressiveness as India Software Development is producing in its own region and center. Further he added saying, the areas where there enter for making deals receives only 2% competition and they bag around 87% of them. These deals are in SAP and Oracle-based programming solutions and are $1million to $25 million in size. The revenues of the organizations last year were more than $13.7 billion out of which 35% was contributed by Offshore Outsourcing and the remaining by consultancy.

The fledging Offshore Outsourcing India industry is poised to grow more than 50 percent in year 2006 as the country's IT industry continues to impress the global market with its low-cost, high quality service in Software Development. According to a study by India's Software Offshore Outsourcing, it will continue to grow and will bring in $22 billion in revenue in the coming three years. There was fear of election, John Kerry he would have pulled the plug on Offshore Outsourcing. After re-election, India's offshore organizations survived a major scare and now at least for another four years, India's Offshore Outsourcing industry looks secure.

The study said the cost savings from Offshore Outsourcing would create an additional $30 billion per year in new investments for U.S companies. It also says that up to 15 percent of Information Technology jobs required by American based organizations will be performed in India by 2010. By then, the Indian IT labor force will be more than 3 million, and half of the workers will be performing jobs for American organizations. The Indian firm is delivering high-value, low-cost services. While Indian providers struggle to understand all the intricacies of the United States and European markets, a focus on process, quality, and low cost will make them hard to beat in the long term Offshore Outsourcing market.

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Monday, January 22, 2007

Offshore Outsourcing and advantages of the overall process

Offshore Outsourcing, as we all know that has made the world very tiny and brought almost all the ends together. Increasing acceptance of this process worldwide show that there is something in it which really pulls everyone towards it. More and more companies today are aiming towards this business path. The main reason behind it is the cost advantage and the flexibility associated with it. One can make the cost profit along with his flexibility in this way of the business. Along with the cost and flexibilities many more advantages are also attached with this way of the business. In some case the ratio of the cost savings is heard to be 60% to 75% by the way of Offshore Outsourcing.

In Offshore Outsourcing one party sends its data and information’s to the other party in the other country and get the work done. At first sight it might sound some strange and costly, but in real scenario it is not like that. It may feel like sending the data offshore may be very costly. It is true but after spending behind this there are lots of other advantages which will repay this cost and make you earn much more than your expectations. Let us take an example that there are lots of American companies who are dealing the IT services in India by Offshore Outsourcing. The main reason behind this purpose is to gain the labor cost of Indian talent and to overcome the expense. In reality in America the local employees in IT industry charges heavy amount and same work is done with almost half or less than that cost in India. So more and more American companies are sending work to the Indian companies and gaining the labor cost advantage. In the area of IT services and problem solving India and China are the best places to outsource. China has upper hand IT Hardware Industry while India has upper hand in IT Software Service. More and more MNCs are also entering in these two countries for Offshore Outsourcing of IT services and problem solutions.

Offshore Outsourcing

Offshore Outsourcing also provides much more facilities along with the cost and flexibilities. It also reduces the headache of the companies to set up the plants in the other unknown country. Such process of setting up the plant, hiring the local talents, huge investment and many more are really headaches for any companies. All the facilities are now available without any real problems. Outsourcing companies provides almost all the services and facilities along with the consultancy programs. These features of the Offshore Outsourcing really make the companies to accept the process.

In short Offshore Outsourcing process is the basket full of advantages. Almost all the companies from all the industries are gaining out of it in one or the other way. These all shows the popularity of the overall process. More and more companies are now investing as much as possible in this to reduce the overall cost of the business. Such huge response to the process of Offshore Outsourcing indicates its advantages and demand in the future ahead.

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Saturday, January 20, 2007

The Rising power of Outsourcing to India

It would be a good experience to visit India, as Outsourcing to India is one amongst the celebrated place which has rising power in world. Outsourcing to India has been utilizing its economic wealth to the fullest which is an interesting aspect for any country. India declared nuclear power in May 1998 and its emergence that has been a massive undertaking. The real test of a rising power for any country is how much that has been able to improving the standard of living of its people, how much poverty reduced, the way of discernible evidence of improvement in that country's infrastructure, and whether there is a noticeable improvement or reducing in environmental pollution, which has remained a sustained curse of all developing countries, that including India and China another rising power, but getting tuff competition from Outsourcing to India.

Outsourcing to India given by the example in Three Billion New Capitalists; the book provides a fascinating case of country’s emergence as Information Technology hub of world-class. India is now going through revolutionary changes, by the realm of improved standard of living. Now, Outsourcing to India is trend of inspiringly becoming a country where multinational conglomerates are gathering for lucrative returns on their investments and a leading hub for highly sophisticated research and development. At some point in the past decade and a half or so, world focused on Outsourcing to India for jobs that were cheaper to carry out in that country than in the United States.

Outsourcing to India

The 7-8% annual gross domestic product growth for the future by India's economy, if look at the past two years it has grown faster than neighbor country China. Some believe that with its legacy of rule of law, capitalist institutions, Global Outsourcing to India and democratic processes it may well outstrip China over the long term of period. G rowing at this rate, India would have a Gross Domestic Product over United States $2 trillion, which will make India the world's third-largest economy and perhaps on the way to becoming the biggest.

Outsourcing to India as emerging patterns of conspicuous consumerism in world today, is looking for new United State style shopping malls, the number of cars and motorcycles, and highly visible changes in buying pattern, the country is changing into a large and faster way. The personalized aspects of shopping for going to small shops and establishing personal ties with small shopkeepers over a period of years, indeed decades are going through discernible changes or other essentially cultural products. They do not need and can not even afford in order for their economies to grow and because they should be able to afford them, they are no longer considered as poor as before.

The information revolution, which has affected Outsourcing to India and their neighbor country like China, is definitely enlarging the size of India's middle class.

Friday, January 19, 2007

Outsourcing India - One of the best Destination

Outsourcing India – One of the preferred destinations in the field of IT and other services to be outsourced. One thing is sure that outsourcing to India will definitely give you unbelievable payback if you are firm on your decision of Offshore Outsourcing India. You will gain much more than your expectation if your way of working will be Outsourcing India.

Outsourcing India today is one of the best ways for any company to reduce the application development costs and their maintenance costs. It will also provide you more strategic work with fewer efforts. India is one country with huge manpower and talent. So one can easily get benefits by the processes of outsourcing from India. Big multinational, in the past used to turn off their faces from the outsourcing process, are now heading towards India as far as outsourcing is concern. Outsourcing from India would not only help you in saving the overall project costs, but you will get much more beyond your expectation. Lots of new outsourcing companies are also emerging in the Indian market, which leads to heavy competition and keeps the price low. In India no big name has the monopoly in the outsourcing process of any services or the product. One can find lots of competitors in the same service fields which keeps the over all cost down and competitive in the market of Outsourcing India.

Outsourcing India

While Outsourcing India is one the most demanded destination for the big multinationals, China is also trying to make the name for itself in the world of Offshore Outsourcing. China is considered to be one of the most competitive countries for India, but still the demand of Indian talent is the same as it was in the past. One can get the benefits of almost all services ranging from price, manpower, talent, dedicated services, quality and many more at the single place, if the destination place for the process of outsourcing is India. Though China is also giving lots of competition to India to outsource, still the popularity of Outsourcing India is the same.

Most of the multinational giants consider Outsourcing India, the safest and more reliable process. They know what are the extra benefits and advantages they will get along with the cost, if their destination for outsourcing will be India. It is also true that Indian professional, entrepreneurs and venture capitalists have put lots of efforts behind the process of making Indian as one of the demanded destination for the process of Offshore Outsourcing. We can say that these are the founders behind the Outsourcing India process. Lots of IT professionals, who moved to US or in any countries in early 1950-60 have come back to India and have become the entrepreneurs or venture capitalists in the big and medium sized companies. Some of them have also started their own business and helped towards the process of Outsourcing India. In this way India is considered to be the safest and most demanding spot for outsourcing process.

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Thursday, January 18, 2007

Offshore Outsourcing and its Growth

Offshore Outsourcing has now been the main business process for many companies worldwide in almost all the industries. More and more overseas business process is now taking place day by day and the overall process is becoming very mature. There are lots of companies which have their highest investment in this overseas process rather than the local business and they are earning like any thing. More and more investment in this process also gives the hike to the overall business. This process of overseas business is not newer as it used to take place in the past centuries also. In the past the overseas business used to take place because the country running short of resources, but in current scenario this way of the business is prevailed because of the cost cutting advantage that it possesses. In the past there wasn’t any particular way of doing the business for overseas deals. Both parties involved in the deals used to do the business on the basis of trust on each other. But now the different scenario is taking place in the overall business process of Offshore Outsourcing globally.

In the process of Offshore Outsourcing it seems that the next generation is taking place. Innovation of latest technologies in the market has also boomed up the process globally, still the main reason behind this business way is to gain the cost cutting advantage. In present scenario there are lots of legal laws and formalities for the overseas business. Clients and vendors both have been very much mature to face almost any challenges related to it. Legal contracts associated with the overseas business makes the deal run smoothly. In present scenario every one takes lots of care before entering into such contracts even if the opposite party is very much known to him. As the business process is getting more and more popularity, increase in frauds is also taking place in the market in Offshore Outsourcing deals. More and more precaution and caring steps are taken now to avoid the business risks. In short the whole business process is now getting changed.

Offshore Outsourcing
In Offshore Outsourcing the process of BPO is at the boom in the market globally. Many telecommunication companies are investing big amounts in such process and making profit out of it. In present scenario both clients and vendors believe in making long term relationships rather than just the professional relationships in IT Outsourcing. More and longer term contracts are also taking place because of it. In present scenario almost all the services are available through the Offshore Outsourcing. Even no real investment is required to start the business.

In short the process of Offshore Outsourcing is now reaching to its top and becoming more and more mature. Its popularity and use is increasing day by day because of the advantages associated with it. The overall market scenario is also changing because of this in overseas business. Offshore Outsourcing has made its home into the roots of almost all the industries.

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Wednesday, January 17, 2007

Outsourcing India has proved Beneficial

US jobs overseas remains an emotional tension, as Offshore Outsourcing India has proved Beneficial from the business point of view. Outsourcing India was a reality of the 21st century, but yet India has to prove itself by opening its market for various American goods. The competitiveness and productivity gained by US business are jobs created as a result of outsourcing many jobs are sent overseas to India, China, Japan and many other foreign destinations.

Outsourcing India is now thunderous as a rule each Indian employee represents an annual savings of $20-30,000 when compared to American employers. US businesses are gaining productivity and competitiveness as a result of outsourcing. Such savings, quality of work is gaining its importance. The skills and talents of India which were hidden earlier are now being exposed by Offshore Outsourcing. India Software Development has gained its huge momentum gain by outsourcing job to India. Therefore multinational companies are getting more complex work in all the fields of Software to Biotechnology and even financial services. Corporate countries like US or UK can no more thank it is immune to Indian competition. India has ranked the first Third World Nation who has thought of increasing its country’s economic factor by using its brain power by Software Outsourcing to all the other manufacturing high technology. Software India has proved its strategy to have a global experience in Software Outsourcing.

Outsourcing India is not a ‘zero-sum’ game. It has created value for all the American small and big companies to gain respect and deliver their goods to India. It has freed the American resources for activities with more value added. So both US and India are in win-win position. Outsourcing India is a whole process wherein people from all corners put their brain, ideas as a team, raise the capital, and build long-term services which India cannot do sitting alone in India.

Outsourcing India

The innovative companies of US bring their market to India for quicker, cheaper and better performance in dealing with complex project as India’s resources are much cheaper than any of the countries of US offshore or onshore. This increases the pace of innovative cycle. The intellectuals developed in Offshore Outsourcing are gaining its momentum. More than half of the fortune 500 companies including other leading nations like Europe, China, and Japan have chosen India for its brainpower and low-waged man-power available in India. It becomes the vendors’ hell to think on how to pay the high-wage salary to its recruiters, think about employees, recruitment, giving those homes and other necessities to meet the requirement of the client who is based offshore.

Outsourcing India has proved beneficial and crucial for US counties, because it is completely out of question for US countries to produce some stuff cheaper than India and China and or produce or develop such a stuff which India and China cannot- which is absolutely out of question. The reason for US companies to offshore jobs is to reduce costs associated with the workforce. US companies have less productive equipment and more expensive workforce whereas new Software houses developed in India have more productive equipment and cheaper workforce. There is not much political rigidity towards outsourcing India. If the production is moved to Offshore Outsourcing, then the net result is easy to grab as the design engineers and production engineers speak the same language. Thus in this way US is distributing its wealth evenly to all the countries through which Globalization is coming in picture. Thus Outsourcing India has proved Beneficial.

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Tuesday, January 16, 2007

Ways to Successful Offshore Outsourcing

Document is prime requirements in the process of Offshore Outsourcing. For example if the of native technical staff cannot read your mind about what you want in the product or project, how can geographically distant, non-native English speakers understand the requirements of client during the Offshore Outsourcing process.
Training of the Offshore Outsourcing team is important. The main thing is that outsourcing staff needs to know how the product works, both from the internals and from the perspective of knowing the problems the client wants to solve. Especially if you have Software Development occurring in multiple sites around the globe, you require a clear change process to make sure only the changes you want are allowed which makes by developing an appropriate change process.

Qualify provide by the vendor is equally important while Offshore Outsourcing process. Does the vendor have domain knowledge or not? Is it financially viable? Are there enough contractual safeguards in place to keep control over the intellectual property that you give it? These are some of the question to be asked before going for Offshore Outsourcing of the work.

The selection of Offshore Outsourcing projects with nonvolatile requirements is also important criteria. If the requirements changes frequently and it needs to check out the evolving product with the user, Offshore Software Development Outsourcing across the international makes it much harder. Planning of in-house staff by shifting their work hours is one another way for better process. If there is not enough people shifted to work earlier or later in the day, then someone across the overseas country who has a problem won't find someone to talk to.

Offshore Outsourcing

Make one of the best project managers as internal project manager by assigning him or her. Because there is a project manager at the client doesn't mean vendor don't need someone in their office to make sure all the appropriate handoffs are happening or not. Plan for each project to take longer and cost more, especially at the beginning of an Offshore Outsourcing relationship. The thumb rule is to increase the estimated time by 30% for the first Software project and then monitor the project to see if it needs to increase that estimate. Insist that the Offshore Outsourcing organizations keep the same team for client project's whole duration. Otherwise, the time spent on training by their people is wasted and vendor will have to start the training process again.

In placebo supported of the Offshore Outsourcing team make sure you have the tools, information systems and processes. They will need access to the source code, defect tracking system, database or other platform applications, builds, etc. which the same project tools that the internal IT-teams need. The verification that the people working on your Software project are the ones actually working on the same one. American organizations have been using the bait and switch approach to contracting for number of years. If client don't verify periodically who is working on their Software project, the project could be the learning ground for their newer staff to build their career. Well, the non American Offshore Outsourcing company has learned the same technique.

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Monday, January 15, 2007

Offshore Outsourcing looks fairly Good

Offshore Outsourcing really looks good in terms of many aspects, because it carries lots of advantages with it. This process with lots of flexibilities also reduces lots of work burdens from the side of the clients and opens many new scopes for them regarding his business searches. Well managed and fully furnished companies at present are available to serve for even the smallest business application with the best possible quality and at the lowest possible price rate. All these and many more points are there that makes the overall process of Offshore Outsourcing very interesting and frequent used ones.

Offshore Outsourcing has really changed the current working style of many of the companies. More and more companies are avoiding the old fashioned style and shifting the business process to this latest and modern way of the business process. Company’s priorities, policies and procedures to govern and manage the business operations have also been changed because of such Offshore Development help. Such decisions are more of the corporate objective based and they have also become more centralized. Previously the staffs were given lots of freedom regarding any business decisions and they were able to take decisions themselves. But by the adoption of such business process has really brought many changes in it. In present scenario in many companies now decision about audit comes first regarding the assessment of current and future business of the company from all the units. Such audit are conducted by some independent firms or by the own internal teams of the companies. This is considered to be one of the important stages of the Offshore Outsourcing.

Offshore Outsourcing

In Offshore Outsourcing the second most important stage is to build the perfect strategy for the business process. After clearing the focus about the limited resource, development of the overseas business strategy comes in to the picture. It starts with the specific priorities and funding decisions in accordance with the prepared audit details. It is also kept clear that what is to be sent overseas and what is to be kept inside. The roles of the overseas vendors are also than determined and the selection of the perfect vendors takes place. Still wholesale transfer of the deals of the companies should not be sent overseas as the chances of the failure increases. So it is better to first identify the needs of the companies for the purpose of Offshore Outsourcing.

In Offshore Outsourcing, well managed and mature services are also taken under consideration while taking any important business decision in some large companies to distribute the overall workload. Standardized platforms in terms of updating the hardware and software are also an important task in such overseas dealings. In short all these are some of the process that makes the overall process of Offshore Outsourcing very easy and smooth going.

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Friday, January 12, 2007

Tips for Offshore Outsourcing

There are some tips for Offshore Outsourcing procedure and can be very useful at the time of selection procedure.

1. To start such overseas dealings first of all prepare a detailed requirement study for the project and also make a list of documents with the business logic behind the whole procedure.

2. If you have any idea about the technologies to be used prepare a detailed list of all needs.

3. But if you don’t have any idea, it is better to hire someone onshore to prepare for the system requirement study and document for the project.

4. After gathering all requirements and everything are clear on your side, start the search first for overseas country and then for the company.

5. Google search engine can be useful for your required expertise area company.

6. After gathering the huge list of the Offshore Outsourcing service providers form the search, surf the websites of the companies that you find useful for your projects.

7. Some of the criterias that you can look for while surfing the websites of the company like, since how long they are in such overseas business, what are their strengths and weakness, their positive and negative reviews in the market, their work experiences and expertise, and many more can be useful at the beginning stage.

8. After short listing few companies, now its time to prepare a general enquiry about your requirements and also make sure that you submit those enquiries by company’s website’s feedback form.

9. In the initial stages of inquiries you should ask to know more about company, their prior experience about same projects, inquiry about their pricing and project execution policies and strategies and such things.

10. In such Offshore Development inquiries keep one thing in mind “DO NOT DISCLOSE” any informations about your project documents unless and until you are satisfied by the reply of company. Signing of NDA (Non Disclosure Agreement) before disclosing by both of you is very important.

11. Make sure to mention jurisdiction which can bound both of you as in many countries having cross border agreement doesn’t work. Like for India you may write jurisdiction and laws applicable of Common Wealth Nations where India is a member country along with few developed nations.

12. After selecting the company for Offshore Development services prepares a full statement of work in tandem with the company.

13. Its time to prepare a draft of Agreement from your Lawyer or some consultants for the further procedure and send it to the company for their opinions on it.

14. If possible also fly to company’s main office in their own country. It would help you understand the company in better manner.
All these are some of the important tips for the companies who are willing to go for Offshore Outsourcing services.

Thursday, January 11, 2007

Guidelines for the smart possible way for IT Outsourcing

According to the survey conducted, financial services companies globally are spending around $350 billion on IT per year. All these include costs for proprietary and packaged services for software and hardware requirements. From this budget, almost 35% of total IT spending in worldwide financial services firms will go to third-party service providers for software and professional services and IT Outsourcing along with software licenses. As these companies are attempting to use Information Technology as a competitive advantage, they are also searching for ways to simplify costs and for them the IT organization is always a perfect place to start with. Within the Offshore Software Development, software licensing is recognized as a puzzling and expensive cost of the IT budget. Though it is getting easier to work out and IT managers, armed with a few guidelines for the smart possible way for IT Outsourcing, can learn to lean some unnecessary costs of the projects.

As the companies want to manage the cost of the software effectively, they should have a keen understanding of the elements that are affecting licensing expenses of the software. In present scenario of Offshore Software Development, software vendors offer more service options and flexibility than ever in the past and enterprises would do better to take benefits of new ways to get more value for their investments. To do that, the customer should start from the first step of evaluating their existing software licenses in the process of IT Outsourcing. After the evaluation, it becomes easier to define if their current licensing configuration meets their requirements or not. Most reputable companies have resettlement paths that allow clients to upgrade to a more advanced technology with extra functionality when they need them. Many companies can also decrease software costs by selecting a term license instead of a perpetual license copy.

IT Outsourcing requires proper cost analysis

The fact in the competitive world is that IT Outsourcing requires proper cost analysis. Slight margin in the analysis of the cost of the project would sometimes lead to big lose. Once managers understand all the costs that are associated with Offshore Software Development, time is now to set the budget accordingly. One thing is sure that it is always easy to and more cost effective to outsource some of the functions such as HR and payroll, as compared to handle those teams and functions onshore. At present companies are also finding other non-core jobs can be managed outside of the company to gain operating efficiencies and flexibilities. So several companies have found that overseas business for major software-based jobs, like CRM (Customer Relationship Management), procurement or financial functions can largely decrease their overall operating costs of the projects.

Perfect schedule for the whole deal is also very important step. Being a client you must keep a keen watch about the meeting of the deadlines by the service providers in such IT Outsourcing services. If you find that he is not showing proper interest in such dealings then it is better to shift to the other vendors.

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Wednesday, January 10, 2007

Offshore Outsourcing India and a big Deal

India, one of the leading and most popular destinations for overseas services for its high quality and lower rate and cost effective service especially in IT industry. In recently published news declared that, Madison Avenue is outsourcing high-quality and high-end creative services to India. This news indicates that Offshore Outsourcing India and a big deal is on the way to take place. The main reason published behind the outsourcing of the company is, the company can save unbelievable cost, as it is going to cost as little as 1/8 the U.S. price, the news indicated. It shows the popularity and caliber of the country for Offshore Outsourcing.

According the news company is going to get more benefits from India. Company first used manufacturing to China, and now they are on the way to gain the services from India. Tourists from the house of America are flying to India to get their surgical procedure done there. But the fact is that, now the divine grail of American consumerism has dropped down. More advantages are like company is going to get the benefit and opportunities like bigger, better government and only with the 1/8 of the overall cost of the project. The cost is the main source along with the skill with India that attracts several companies from different industries across the globe.

Services of Offshore Outsourcing

A company from America has two options like more government or more efficient government. So the better options for them sounds to select the federal government to India. Country has several and favorable legal rules and regulation for Offshore Development. Still it is not as far-obtained as it first seems or sounds. The Indians have outstanding attorneys, bright, talented and well-educated. This Offshore Outsourcing India a perfect destination for more many countries. India's bureaucrats and administrator’s professionals were prepared and educated by the very best for such services of Offshore Outsourcing. This indicates that Indians professionals could easily facilitate culturally sensitive bureaucracy services, tailored specifically for today's requirements of Western world.

India is already leading one for IT Outsourcing service globally. Country also has numerous brand names that are very much demanded for their services around the world. It has already expressed that it can facilitate compassionate, caring support via call centers for insurance companies, computer technical support in IT industry, and other consumer products and services. These all and many more services that are that lead Offshore Outsourcing India on the first position. Country also has a wide pool of talents that are ready to serve across the globe. Companies who are in the business to Offshore Development to India get all these advantages as well as the most important one flexibility from the work burden.

These are some of the information’s which indicates that why Offshore Outsourcing India and services are this much demanded globally for overseas dealings. India has really lots of services and facilities to offer the world in all the industries.

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Tuesday, January 09, 2007

Offshore Outsourcing to India

In past decade, due to Offshore Outsourcing to India, the nation has emerged as the hub of software development and web design. It’s taken a drastic shape when almost 60.5 billion dollar business, offshore outsourcing has grown exponentially in India. Big number of skilled IT professionals with English speaking ability, the nation has proved its significance in software development industry. This is the main cause for MNC to outsource their IT work to Indian sub-continent.

Offshore Outsourcing in India

Software Development business with web designing quality has improved in nation. They have great access of all first class solutions in web-designing to meet the needs of the clients. Indians has proved their hands in Web Design quality as one of the promising features, compete the whole world with their flair and skills. Offshore Outsourcing in India is a win-win scenario for both vendors and customers. Clients are beneficiary of cost cutting and improved quality while developer has a chance to show their innovativeness and ideas perfectly for Software Development. So, web designing is a major reason of boom in software boom for the nation.

India has one of the highest numbers of English speakers through out the world, however it is not primary language of country, but they have advantage due to their command on their own with speaking fluency. That is the main reason of Indian call centers increasing demand in past some years. Lots of Multi National Companies such as HSBC, British Gas, Norwich Union and British Telecom all have their communication made by Indian call centers. Indians are very friendly and warming hearted beside their excellent command over the language like English.

Labor costs or minimal cost for development plays vital role in business enterprises these days. Every entrepreneur wants maximum profit so that they try to save more money and India is the best place in world to fit this line when one gets the good quality in reasonable price. One can approach organization based programmer in less comparative price instead of going with freelance software developer.

No doubt, Indian market of Offshore Outsourcing is growing day by day. With the advantage of best quality web designs, minimum development cost and command over English, India software development has a full of professionals and experts to fulfill their requirements of Offshore Outsourcing.

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Monday, January 08, 2007

IT Outsourcing history of India

The IT Outsourcing history of India measures some steady inflow of investments by giants organizations of world likes of Reuters, that provided large captive IT and Software Outsourcing facilities in India. However, the existing Offshore Outsourcing operations of leading MNCs’ are being ramped for catering with the increasing demand by better & speedier services. With that all the top IT companies of India have announced a part of expansion; by meant to that now they are in the process of hiring human resources for filling the additional seats. India have competitive advantage in their ability by providing large cost savings and gain the productivity, India has an edge for the international market of BPO. NASSCOM- the National Association of Software and Services Company have studied and pinpoint some of the following factors as the main reasons behind success of IT Outsourcing India in world.

• Skilled, English-speaking and abundant manpower that is being harnessed even by IT Outsourcing hubs.
• Strong quality orientation with competitors and with the focus on measures and monitored quality targets.
• Telecom sector improvement and with other infrastructure that is at par with international standards.
• The ability to offer 24hours x 7days services based on the nation's unique locations for geography, which allows for leveraging differences of time zone.
• Positive and proactive policy environment that encourages Business Process Outsourcing investments and simplifies procedure and rules.
• The tax structure is friendly that places the IT Outsourcing India industry on par with global services firms.

Outsourcing to India offers valuable improvements for quality & productivity for offshore organizations with crucial parameters likes of number of total and correct transactions; factor of total satisfaction; hour & average speed at the time of answering etc. Surveys of NASSCOM have revealed that Indian firms are very well focused for maintenance the quality & performance of standards. Indian ITES Organizations are with an ascending curve as far as concerning of the quality standards. Companies, which have achieved the certificate of ISO 9000, are now migrating to the ISO 9000:2000 standards and organizations on the CMM framework are now realigning for the CMMI model. These things are imparted from investment in up gradation for the CRM & ERP initiatives, many Indian BPO companies are acknowledging the certification of COPC for quality and they are trying to achieve COPC licensees.

Despite being a inexperience in the global IT industry, the IT Outsourcing India recorded a growth rate over 50 percent in year 2002-03. The experts of industry consider this as a positive indication for the future time and a look at the ranking & revenue with headcount statistic and potentiality of the industry. The IT Outsourcing industry was valued globally at 773 billion American dollars during year 2002 and estimated to grow at a compounded annual growth rate of 9 percent in between period for the year 2002 to 2006. NASSCOM lists the main indicators for the high growth potentiality of the IT Outsourcing industry in India as follows.

• The no. of Indian IT-employees working jumped to 245,500 by the year 2004.
• Te exports of ITES reported for more than 3.5 billion American dollars in revenues, increases up from 2.5 billion American dollars in 2002-03.
• During year 2003-04, the IT Outsourcing sector is estimated to have achieved more that 50 % growth by revenues compared to the previous year before that.
• The BPO sector has also proved as major employment opportunity, creating jobs for around 74,400 additional professionals in India during 2003-04.
• According to study conducted by NASSCOM and McKinsey & Co., by the end of year 2008, the sector is expected to gave employment more than 1 million Indians. Surveys of the IT Outsourcing India industry in 2004 expected it to follow these trends.

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Saturday, January 06, 2007

Offshore Outsourcing India making organizations

Offshore Outsourcing India making organizations across the globe to look at the nation due to the availability of technically skilled and trained human resource, as a profitable base for shifting the high end software and IT related support services. Organizations such as COLT Technology solution services are considering offshore outsourcing for their technical back-office support work in India. Other important areas are high end engineering and network management support. Another field in Software Outsourcing showing immense potentiality is the digital content creation & animation.

• Customer care: Support services and Customer care will continue to lead the revenue generation for Offshore Outsourcing, with a turnover reached 1200 million American dollars in year 2003-2004., and that grown from turnover of 810 million American dollars.

• Finance: In the services of finance segment the value added domains such as insurance claims processing, equity research and financial management services is expected to reach the highest growth, with estimation of 820 million American dollars as revenue in 2003-2004, increased from 510 million American dollar in year 2002-2003 for Offshore Outsourcing.

The growth is also expected in Human Resource services and the revenues were expected to climb 70 million US$ during year 2003-2004, thereby provided latent significant opportunities in the IT industry for some of dominant players.

Payment Services in Offshore Outsourcing
• Payment services: The segment of payment services in Offshore Outsourcing industry has identified as a high growth sector. And it is expected that revenues generated some what around 430 million American dollars for 2003-2004, increases to 210 million US dollars in 2002-2003.

• Administration: Revenues generated from the services of administration segment increased from 310 million US dollars in 2002-2003 from 540 million American dollars for the year 2003-2004.

• Content development: The content software development services sector that including engineering & design services, animation, network management, digitization and biotech research had expected to grow with turnover of 520 million American dollar in year 2003-2004.

Animation studios such as MGM, Walt Disney and Warner Brothers are already doing offshore outsourcing for their low-end work like tweening, clean-ups and modeling to India. Due to the availability of trained and skilled manpower in India, it is able to keep in step with the advanced technologies in the software development industry, which is prompting foreign studios for consideration of India as a base house for high end animation work such as storyboarding & developing original content in animated films ad and TV series. Organizations such as Teleradiology Solutions have been offered the services to American & South-East Asian countries in last 2 years, software engineering services like 3D, CAE modeling, CAD/CAM 2D, and design automation are the current additions to the increased list of processes in India for Offshore Outsourcing work.

Thursday, January 04, 2007

Seven tips for successful Outsourcing relationship

In long-term relationships, the key component for success of the relationship is best laid during negotiations, which lead up to the signing of the Service Level Agreement. Some of the common practices employed for a successful management of outsourcing relationship have been listed below. IT companies from countries like India, are supporting such methods to improve their client relationship management.

1. Keeping relationship between key management personnel:
If there is a good understanding and strong working relationship between the key management personnel of both teams, then such relationships often tends to last long. Research on Outsourcing success has indicated that peer friendships and working methods with one's counterpart in the other company has been an important factor in long term relationships.
Also maintaining one point of contact will avoid confusions. Companies can keep one project manager per project or per client.

2. Well-defined criteria and Quantifiable objectives:
The objectives to be achieved by outsourcing must quantifiable and must be established as criteria right at the start of the contract. If the customer can compare the performance with the pre-established objective, then the benefits of outsourcing would be clear. The vendor would know where they stand in meeting customer expectations.
Well-defined performance criteria have quantifiable objectives, service quantities, quality, customer satisfaction and are measurable against other providers.

3. Developing special board of members:
Successful outsourcing relationships involve setting up of special executive committees or boards that draw out the best strategies for smooth & effective handling of outsourcing relationship. Identification, resolution and rapid escalation of issues are a key responsibility of this team.
By developing a team of people, companies can always do strategic meetings on any plans, issues or to resolve conflicts.

4. Incentives and Penalties:
The provider is encouraged to meet or exceed customer expectations by establishing performance based pricing. When performance exceeds the criteria, the incentives apply and when they fall short, the penalties are imposed.
This will increase the understandings in payment, work commitments and help both sides in long run to understand the work code better.

5. Periodical review meetings:
For a successful outsourcing relationship, it is better to have frequent formal review meetings. These meetings can discuss what both teams are working towards and a high level view of the future goals and objectives. Product reviews and deliverables can be discussed at such meetings.
Staying away from the client, without updating will lead to much frustrations at the client side. Also if there is no periodical updates, chances are more to understand the client requirements which leads to deviation from the requirement and can be solved later only in a troublesome phase in both sides.

6. Training vendor personnel:
The vendor personnel need to have ongoing training so that they align their business goals to the business objectives of the customer. The issues driving the clients needs have to be understood and the vendors' service has to relate to them.
The training could be in management, technology or anything which can improve the client relationship.

7. Understanding the cultural differences:
This is one area where countries like India need to concentrate. As both parties to the Outsourcing relationship will have their own culture, these differences have to be recognized and bridged. Organizing social events, education on company background, participation in others' quality programs, etc., are some of the ways to improve the cultural understandings and bridging this gap.

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Wednesday, January 03, 2007

Off-shoring / Outsourcing Benefits: Difficult to Ignore

Unable to ignore the many benefits of the IT off-shoring / Outsourcing trend, market researchers are predicting a substantial jump from 20% to 50% in the number of companies that outsource work, mainly to India.

According to the study, cost savings from outsourcing are much too persuasive to ignore. Many, highly aggressive outsourcing campaigns have helped companies to dramatically cut costs and show a significant growth in company profits.

Money saving, large profits, a result of off-shoring / Outsourcing are responsible for the enticingly sweet lure it holds out. As well, advanced technological i.e. secure networks, line / storage leasing all contribute to make it painlessly possible for IT managers on a tight budget, to transition work to an overseas service provider.

As technology becomes cheaper and more reliable, not only multinationals are off-shoring / outsourcing, even small start-ups with under-sized budgets are jumping at the opportunity to make money by joining the off-shoring / outsourcing trend.

According to a lead researcher, sob stories circulating about off-shoring / outsourcing are often due to bad processes followed at home rather than the result of off-shoring / outsourcing work. The trend of off-shoring / Outsourcing payroll, HR and benefits work has proved to be extremely successful, a clear indication that the process works, and can only gets better.

IT managers across the country continue to find they can cut their budgets by as much as 40%, simply by sending work to an IT service provider in India. High savings for top quality work, what further incentive would an IT manager need to off-shore / outsource IT-related work to a service provider.

Tuesday, January 02, 2007

Why Outsourcing Takes Your Business to a Higher Level

Outsourcing is a term used in business and it is gaining popularity on the net as millions of web site owners discover they do not have all the tools and skills necessary to handle each and every portion of their businesses.

Unlike having to find, interview, and hire an employee - and thus incur the tax liability of a new employee - often savvy business owners turn to outside companies. Outsourcing services take on the tasks underlying a business leaving the owner more free time to pursue the front-end of his or her business.

Wikipedia states:

"Outsourcing" involves transferring or sharing management control and/or decision-making of a business function to an outside supplier, which involves a degree of two-way information exchange, coordination and trust between the outsourcer and its client."

Outsourcing, therefore, becomes an integrated part of your business. The importance is to determine what should be outsourced, why it should be outsourced, and who will provide your outsourcing services.

Business segments typically outsourced include:

* Information technology
* Human resources
* Facilities
* Real estate management
* Accounting
* Direct Online Marketing and SEO

In addition, many companies also outsource their customer support and rely on call center functions.

Using the Know How of Others

The business owner must be able to step back and make an honest evaluation of his or her talents. We are not all created equal. We all have different strengths. One surefire strength for business success that a business owner must cultivate is the ability to delegate responsibility through the use of outsourcing. That's how a well-run, profit-pulling online business accomplishes its goals.

Today's businesses - large and small - gain immense benefits by finding other companies outside their own arena who possess the technological know how to analyze, plan, and implement target objectives.

In the case of the smaller web site owner looking to gain greater footing with the hot market of search engine results, finding an outsourcing service to handle marketing (and a small portion of advertising) is one such effective strategic move.

Traditional approaches to search engine marketing have, for decades, focused primarily around a web site's Meta tags, firming up web page content, and then submitting the site on a regular basis to the search engines. From a purely advertising basis, other companies will insist that just driving "targeted traffic" to a site is "enough."

While both of these methods are viable, a good outsourcing company often adds these two methods at low cost or no cost - just bonuses while the real work of marketing is underway.

Choosing the Right Outsourcing Company

As an online business owner it is easy to become frozen in place trying to keep up on all the possible, working, methods for marketing online. Even if one could find the time to read everything and devise a plan, putting that plan into action becomes cumbersome. Doing even the "smallest" of tasks can literally take hours of your week away from you. Hours better spent on web site enhancements and new products, mailing list contacts, and just being there for your web site visitors. Unless the web site owner is willing to give up some control, the grind of working the foundation of marketing too often must supercede the human approach to being there for your customers.

While we all love to do our initial digging online, pick up a phone and call or send email inquiries or submit forms for call back when choosing an outsourcing service. Make sure your questions are addressed intelligently and at a level of understanding that you feel most comfortable with. Avoid listening to prescripted sales pitches where all they want to do is monopolize the phone and beat you down to the point where you really don't know what they can or cannot do. Take control of the conversation, then turn that conversation into an effective two-way street of open communication. Any company not willing to do that - or vague in their explanations of how - should be moved to the bottom of your list as you locate the best outsourcing company to work with you and your website.

Finding a company that understands and weeds out fad flash-in-the-pan methods, and builds your marketing business on solid, proven methods of web site promotion should be your goal. Find that company and establish a two-way street of information and trust in order to work effectively together.

How to Incorporate Outsourcing Into Your Business

"Prior to the contract development of any outsourcing agreement, the outsourcing company develops a request for proposal (RFP) document which highlights the major requirements and scope of the project which is to be outsourced."

Through a bid-like process, or the acceptance of agreed upon stated services at given costs, the recipient company has an actual proposal of services in hand. They know what they are getting, what timeframe to expect, and projected results from this outsourced service.

By outsourcing, the owner understands what the benefits to the service(s) are, but the strategizing, planning, and implementation can be safely placed into more knowledgeable and efficient hands to get the job done.

In Summary

Outsourcing is not just for the "big guy." Overall Outsourcing is viewed by many organizations as a strong business tactic that ultimately is a superior economical approach to developing products and services.

Simply put, don't try to do everything yourself. You may have many fine strong points, but running your online internet business single-handly should not be one of them. Learn when and delegating responsibility can actually make your business grow by leaps and bounds. Then find an outsourcing service you can work with - one with a complete understanding of your web site - one that is willing to go extra miles to make your business a success.

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