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The offshore component has become a very important
component in an outsourcing deal. The costs savings
achieved by companies moving work offshore are substantial.
And of all offshore locations, India figures prominently.
Of course, India is not the only destination for offshore
IT outsourcing. There are countries like China, Russia,
Philippines, Poland and Mexico. But India is considered
as a favorite destination because India offers certain
advantages.
India have effectively provided efficient software solutions
to Fortune 500 companies. Citibank, Morgan Stanley, Wal-Mart,
AT&T, General Electric, Reebok, General Motors, Sony,
Boeing, Coca-Cola, Pepsi, SwissAir, United Airlines, Philips,
General Electric, IBM, Reebok, Lucas, British Aerospace, General
Motors, and Sears are some companies relying on software companies
in India.
It is not surprising that corporate giants in the United
States, Europe, and Japan are increasingly looking to India
for cost-effective and high-quality software solutions. In
fact, a World Bank-funded study in the United States confirmed
that vendors rated India as their number one choice for outsourcing.
India has invested heavily in technical education and can
provide a ready supply of bright people at relatively low
cost. Infrastructure improvements in India, particularly in
the area of telecommunications, and the independent nature
of working in IT make it possible to bring this talent to
bear on virtually any programming task. Traditionally, the
most active location for staging these types of IT initiatives
has been India. A strong supply of high-programming talent,
favorable government and tax incentives, and the ability to
complement U.S. time zones with a virtual around-the-clock
approach are some of the advantages India has to offer.
Some of the key benefits to outsourcing to India are:
- Access to leading practices: external service providers
give companies access to an extensive, highly specialized
knowledge base--which providers must improve continuously
to stay in business.
- Clearer strategic focus: allows managers to focus on core
competencies and strategic issues rather than on routine,
time-consuming activities
- Better resource allocation: can help shift the traditional
focus from transactional activities and reporting to the
delivery of forward-looking information and value-added
business analysis.
- Improving service quality and productivity --reduce response
time, deploy solutions faster and improve system availability.
- Improve performance--maximize the performance of an organization's
enterprise client/server computing environment through the
use of the latest technology and an outsourcer's performance
management tools and expertise
- Achieving cost effectiveness as well as cost Reductions
- Significant cost savings, up to 80% in certain cases.
- While it can be quite difficult to recruit the expected
competence in Western countries, it is a completely different
scenario in India, where there are lots of available programmers
with a good academic background.
Outsourcing software requirements to India
Are u looking to outsource software Development requirements?
How to succeed... ??
The mechanics of offshore outsourcing involves the following
self-analysis, which is common for any organization looking
to outsource:
- The need to outsource - why, what & how much to outsource?
- Which are suitable projects to outsource & how to
draft a proper RFP or RFI to get a complete proposal from
vendors?
- How to identify the list of prospective vendors &
getting bids from multiple vendors having expertise in your
project domain?
- Visit & Audit the offshore vendor facilities
- Finalizing the right qualified vendor & lay down
a detailed Service Level Agreement (SLA) covering all technical
& commercial aspects of the outsourcing relationship.
- Finally how to adapt to the transition management within
the organization?
Only a proper, systematic & institutionalized approach
towards the above points can help you establish a long term
relationship & a successful outsourcing campaign with
the offshore vendor. ISN being a professional IT research
& offshore advisory firm, since its inception in 1998,
helps clients in all the above stages of the outsourcing process
& more….
For getting detailed information on ISNs' suite of services
to prospective clients looking at offshore outsourcing, please
visit Client Services.
Or Submit RFP here. Our
"Requirement Analyzer System" will ensure that multiple
vendors having the required expertise will get back to you
at the earliest.
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