Friday, August 24, 2007

Offshore Outsourcing or have more, doing less

World market of Software grows by huge rates. The lion's share of this market belongs to Outsourcing or Offshore Programming. It is forecasted that in 2008 the World Outsourcing Market will take up to $500 milliards, European market -$322 milliards, Business Processes Outsourcing -$125 milliards and IT Outsourcing - $150 milliards.

The world market of Outsourcing draws special attention of analysts as it is not a classic consumer market of IT-services. In the world practice Outsourcing as a scheme of cooperating with the external suppliers of IT-services became the acknowledged mean of increasing work efficiency.

Key clients of the Offshore Programming projects are the companies from North America countries. Foreign partners search on Outsourcing projects is also effective in the Western Europe countries. This region has the best prospects in economic development and, consequently, is the most perspective consumer of software.

Here are some figures of Outsourcing Market: USA – 42 %, Europe –50%, Great Britain – 17%, Germany – 13%

Traditionally, speaking about the market of services of Offshore Programming, above all are mentioned India, China, Ireland, Mexico, Philippines. The leader’s of Offshore Software Development (India) turnover is about $7,7 milliards in a year.

Companies that collaborate with the Chinese partners are mainly oriented on product promotion to the market of China.

Ireland today is not the most effective choice with relation to expenses, but it is very successful variant for companies, that choose to create center of software development.

A key barrier in Mexico is insufficient English language proficiency of developers. Other drawback is absence of quality management standards in local IT-companies. Philippines are acknowledged as a good India alternative, if not to take into account the risks of political instability.

Companies from other countries are also ready to offer Offshore Services, for example, East Europe countries. Also should be mentioned Vietnam, where the amount of graduating students of IT-specialties increases more than 10% annually.

Today business customer need to have answers to the practical questions: how to have better outcome for less money; how to win competitive edges in the situation of limited resources; how rightly and effectively conduct the process of Outsourcing.