The magnitude of offshore software companies have been amplified with giant outsourcing companies offshoring their development processes. US companies’ major share of software product development comes from offshore companies. Offshore software development companies can now stand beside giant players as they have improved their economic condition by making money from offshore software development services they offer. The most critical issue in offshore development is preparing the invoice based on hourly basis work performed for their clients. It is not reality but myth that project management is easier for offshore companies but reality is that offshore project management needs perfect co-ordination between in-house and offshore cubicles. Communication network is poor, the level of skills offered are reduced as business functions are handled by external power and loose co-ordination may result in miserable failure.
As I said offshore software development companies in India are making money but if you go with the real figure the profit tends to zero. We often do not consider the hidden cost like poor infrastructure of developing countries like India that consumes extra time and money which when added to benefits from offshoring software development is negligible. From consultancy to development and migration of software development, offshore software companies deliver effective and quality services on time and within your budgets. Timely delivery is easily achieved for small projects but, very few large projects are delivered successfully. Offshore companies of software development have reduced the risk involved in development and maintenance of their offshore projects.
A dark cloud still hangs over offshore software companies till they improve their education system and infrastructure. Also these clouds can be seen on developed nations that are offshoring their software development processes for more reliable, reduced operational cost and risk reduction; this cross boundary movement has created in-house job threat for US companies.
As I said offshore software development companies in India are making money but if you go with the real figure the profit tends to zero. We often do not consider the hidden cost like poor infrastructure of developing countries like India that consumes extra time and money which when added to benefits from offshoring software development is negligible. From consultancy to development and migration of software development, offshore software companies deliver effective and quality services on time and within your budgets. Timely delivery is easily achieved for small projects but, very few large projects are delivered successfully. Offshore companies of software development have reduced the risk involved in development and maintenance of their offshore projects.
A dark cloud still hangs over offshore software companies till they improve their education system and infrastructure. Also these clouds can be seen on developed nations that are offshoring their software development processes for more reliable, reduced operational cost and risk reduction; this cross boundary movement has created in-house job threat for US companies.
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The reasons behind the success in Offshore Software Development are the technically skilled manpower and low cost services provided by India to Business giants like the US and UK. The English speaking crowd and the time-zone difference is an added advantage. When a country is utilized as an offshore base, it is because the base is capable of providing better services for low cost with ample turn around time. Also, India has Information Technology enabled resources which makes it a top notch among offshore outsourcing hubs. Outsourcing software projects to India has indeed brought laurels to her, but she has competitors lined-up in the software sector. We are surrounded by Philippines, Czech Republic, Russia and South Africa in the competition.
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Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured. It can be contrasted with offshoring, in which the functions are performed in a foreign country by a foreign subsidiary. Opponents point out that the practice of sending work overseas by countries with higher wages reduces their own domestic employment and domestic investment. Many customer service jobs as well as jobs in the infotech sectors (data entry, computer programming, and customer support) in countries such as the United States and the United Kingdom - have been or are potentially affected.
Outsourcing
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