Future of Offshore outsourcing

It is rare to come across any article or write up titling software outsourcing risks or hazards, but there are. The other day, I was reading an article talking about risks involved in offshore software outsourcing। Though nothing so informative or important in it but as a caption or heading it might catches the attention of much readers involved in outsourcing either way. Thousands of top notch companies are still coming forward with their outsourcing needs to various Indian Information Technology counterparts with the motive of gaining a competitive edge in terms of cost reduction and resultant profit enhancing.

In a recent study conducted around the world, 91% of the existing businesses opined that they would continue outsourcing। The scenario of outsourcing still seems to be emerging. Customer call centers, logistics /distribution, core products & services are some of the major areas to outsource, according to businesses in the emerging markets. India and the economies like Bahrain, Belgium, Brazil, China, Germany, Italy, Japan, Kuwait, Mexico, Russia, South Africa, Sweden and the UAE were covered by the survey.

Apprehensions and doubts about the future of IT outsourcing is looming large in India and the reason in every case is obvious; the rupee appreciation। The rise in the value of Indian Rupee in international standard is the cause behind worry. For, software and other IT professionals are available in India in a comparatively less wage which is the sole advantageous point for the multinationals to opt for outsourcing. With the rise in rupee, the outsourcing partner may not find it feasible to continue outsourcing as international would not be able to spend more hampering their profits.


The alternative options of outsourcing like Philippines, Bangladesh etc। may stem into the foray, but how long it will persist is a matter of concern. According to the study outsourcing has so far been beneficial to the offshore partners without much dissatisfaction of service providers.


End goal always being to run a more efficient business profitably, the offshore partners’ need is to be taken care of. Development centers of outsourcing need to be equipped well with proper model and methodology.

5 comments:

Anonymous said...

I agree with you about these. Well someday Ill create a blog to compete you! lolz.

Anonymous said...

The low cost and high quality work delivered on time are the major factors that have attracted companies to do their product development outsourcing solutions done in a country(particularly in India).In additional to this, companies are having profits in their own terms and its also providing increased employment solutions to many people.With competition increasing very fast rate, outsourcing is also becoming a management tool for redefining and re engineering the organization. It challenges companies to think beyond the vertically integrated organization in favor of a more flexible organization structured around core competencies and long term outside relationships.

Regards
SBL Software Development Solutions
http://www.sblsoftware.com

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