Offshore Outsourcing

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Offshore outsourcing is no more a new concept. The significant savings attached to an project outsourced to offshore software development center, convinces most of the Fortune 500 companies worldwide. On average companies report 20% to 50% in net savings by adopting the offshore outsourcing strategy for software requirements.

Lately, companies have restricted the traditional offshore outsourcing risks and shaped an intense relationship with their offshore outsourcing partner by establishing offshore software development center in the form of dedicated centers. A dedicated center can be said as an extension of an organization abroad. The offshore outsourcing partner, allotting a qualified talent pool, with required offshore technical skills set, provides the top-level decision making employees in the dedicated center. A dedicated center offers all its productivity to the host organization; in exact terms of their culture and methodologies to produce immediate results steady with the organization's Quality Assurance (QA) standards. Measurable long terms cost savings along with a desired enhancement in productivity are the major forces behind developing a dedicated center.

Offshore Outsourcing destinations in race for providing the dedicated center services are India and Russia. With Russia is coming up as a major attraction for the same, there are unique and proven advantages for having offshore software development center in India. The big corporates of major industries have their presence in India and the experience with the same can pull them more towards India for the dedicated center services also. But the major and serious competition will be from Russia with its many unexploited areas of expertise in the Industry.

Save Time and Energy

A dedicated center gives your more benefits than traditional offshore software development centers, when we consider the time saved on outsourcing processes.

Breakthrough benefits include:

• The contract arrangement phase can be reduced to quite a desired level or in some cases completely eliminated. In case of traditionally outsourcing offshore, the company needs to get into contract for each and every project that it needs to outsource to the offshore vendors. But in the case of a dedicated center, the company needs to enter into a contract only once and then the future contracts can be handled by the dedicated center. Hence the contract arrangement process can be cut down and in many cases even be eliminated if favorable to concerned parties.



• The requirements collection of the company can be allocated to the dedicated center and hence reduced to targeted levels. Requirements collection includes the supply of background information as well as project goals, from the outsourcer. But if an outsourcer has a dedicated center in the related place, the already employed team will be familiar with the company background as well as standards and goals. Add to this, you need comparatively less time to manage the team, as the staff is well aware of its roles, strengths and weaknesses.



• The project management process in terms of time and money can be considerably reduced.

To Establish A Dedicated Center

An organization has two options while deciding to opt for a dedicated center.

1. Develop the center from scratch at the desired offshore outsourcing destination: This will need a strong financial back up and a thorough research of the desired destination, where the center is to be established. This is a time consuming process along with being costlier and the risk involved is very high.



2. Address a local offshore outsourcing partner, in the desired destination, with resources available to support the activities of an offshore expansion. This helps you concentrate on your purpose of developing the center and reduces the cost and risk factors to a considerable extent.

The major differences between traditional offshore development center and creating a dedicated center are the better long-term savings and increased control over the development process. A dedicated center will save time and efforts by skipping unnecessary aspects of project initiation and management. Most importantly a dedicated center is organized in accordance with the hosts' corporate culture and standards, to provide consistent results regardless of the development location.