With a global trend to focus on their Core Activities, Software Outsourcing has become a viable solution for many companies. It is a fully tried, tested and proven method which has now become an essential part of Business Strategy for many of the world’s leading organizations, allowing them to achieve their target objectives by harnessing the most efficient means possible.
Effective offshore outsourcing allows organizations to:
- Concentrate on Core Business Operations
- Meet Profitability Targets
- Offer enhanced spectrum of services to customers by optimizing available resources
- Venture into new realms of business by harnessing non indigenous technologies
- Achieve cost effectiveness and quicker turnaround times, and minimize Customer Attrition
- Maintain Continuity of work thereby managing Risks
Significant operational benefits include:
- Premium quality work with minimum learning curve setbacks
- Proven development process and quality management system
- Budget predictability
- Development risk minimization
- Dedicated teams focused on your project alone, with minimum day to day disruptions
- ISO processes
- Security & IP Protection in a secured environment
- Round the clock progress with 24/7 support
- Significant reduction in Development Costs and Time-to-Market
- Invaluable advantage in present-day market environment
- Availability of competent and trained IT staff
- Immediate access to a large pool of industry certified professionals
- Seamless Communication
- Customizable Pricing Models
- Access to latest technologies
- Lower Costs/Offshore Rates
- Flexible manpower utilization, reduction in payroll, recruiting and training expenses
- Development risk minimization. Considerably reduced up-front investment
- On-Site Consulting
- Professional Documentation
With advantages come risks. Offshore Software Development is fraught with potential risks and pitfalls, and strategy and choice of partner can often spell the difference between success and failure.
- Although labor rates are lower, do outsourcing partners match our productivity?
- How should we engage effectively with our outsourcing partners?
- What is the best way of starting an outsourcing relationship?
- How should we parcel out work?
- What should be done off-shore and what should be left on-shore?
- What are the circumstances in which outsourcing does not work?
- How do we control quality?
- How do we know if we are getting value for money?
Itim Systems is one of the original pioneers of Offshore Software Development in Pakistan, a position that has enabled the company to hone offshore systems development into a dependable and efficient proposition.
Effective communication: Most companies do not realize that outsourcing is not a one way street. They have to invest in the relationship not only in the beginning but on an ongoing basis to realize the expected benefits. In the absence of clear and regular communication, your relationship with your supplier will not achieve the intended outcomes. The following two points are fundamental to a sound outsourcing strategy.
- Proactively Manage Ongoing Relationship: Outsourcing requires an ongoing relationship that has to be managed proactively and measured to achieve what is expected. Outsourcing is hard work, and it takes a lot of preparation.
- Beyond Dollars: Often, the decision for companies to outsource is based on the preference to cut down operational costs. Outsourcing helps to achieve this in more ways than one. Via outsourcing, employee headcount can be reduced in order for companies to save costs on salaries. IT spending due to software and hardware maintenance and upgrading can also be minimized. However, outsourcing for cost reasons alone does not last . The reasons must not only focus on cost considerations but also address how the outsourcing service provider will add value to the business success at the strategic level.