Offshore outsourcing is hot, and for good reason. Outsourcing as a viable means to reduce
operating costs, focus on core competencies, and move from a fixed to a
variable cost model. The practice of outsourcing certain repetitive,
non-core processes to specialists who have economies-of-scale advantages has
been around for many years. It is only recently that companies have been
able to take full advantage of overseas labor markets to achieve dramatic
cost savings - in some cases by up to 60%.
Not surprisingly, though, despite the substantial return-on-investment
opportunity and other benefits, the offshore approach is no panacea.
Identifying projects, products, and processes that can be successfully
outsourced is critical; selecting the right offshore firm for the job can be
challenging; legal and security issues can spiral into major headaches; and
project and team management challenges can easily lead to cost overruns,
project delays, and results that are poor quality and do not match client
Before plunging into an offshore environment, it's essential that you
understand which tasks and services are suitable for offshore outsourcing.
For firms that have not yet built up significant internal experience in
selecting and managing offshore developers, outsourcing is most appropriate
for maintenance of mature, stable applications requiring low levels of change.
With increased experience and a mature partnership, enterprises will
continue to find additional opportunities for capitalizing on outsourced
skills and labor cost advantages.
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reduce your costs of the company by shifting some of your processes to our