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Offshore outsourcing is the delegation of administrative, engineering, research & development, or technical support processes to a third-party vendor in a low-cost location. This page lists drivers that are causing rapid offshore outsourcing growth.
Are you asking these questions?
- How can I cut engineering budget by 50%?
- Should I setup my own Offshore Development Center?
- Should I hire a big outsourcing company?
- Should I not pursue if Ibad experience with outsourcing in past?
- Do I understand why leaders in a variety of industry rapidly formulating and executing offshore outsourcing strategy.
- Do they see a trend that others do not?
- What strategic advantages are the early adopters of the offshore outsourcing model receive?
- Is this a long-term trend or a short-term trend?
Quotes
"Fueled by the Internet and continuous cost reduction imperatives, offshore outsourcing is becoming a "must-have" strategy." - Dr. Andrew Whinston, Hugh Roy Cullen Centennial Chair Professor, University of Texas at Austin
"As a business manager, you need to take a hard look at your core competencies. Revisit the areas of your company that aren't directly involved in those competencies, and consider whether Web technologies can enable you to spin off those tasks. Let another company take over the management responsibilities for that work, and use modern communication technology to work closely with the people - now partners instead of employees are doing the work. In the Web work style, employees can push the freedom the Web provides to its limits." (Source: Time 1999)
Business Pressure Currently USA software professionals needs are significantly more than number of professionals USA can produce. Also, it is projected that Software Professional demand will grow significantly. USA can not afford to loose its dominance in IT. It must promote offshore outsourcing to maitaince lead in the world.
Customer Pressure Another driving force of offshore outsourcing are customers who want more of everything for less money. The companies that don't meet these customer demands quickly go out of business.
Competition Also, there is huge pressure on companies to reduce their engineering cost to outperform their competition.
Other Drivers The following list summaries additional drivers for rapid offshore outsourcing growth:
- Rapid declines in communication and computing costs
- Dramatic improvements in Internet reliablity and functionality
- More offshore vendors with better capabilities and maturity
- High-quality onshore suppliers offering offshore services
- Access to low-cost, high-quality employees, epecially for labor-intensive tasks.
- A business model for offshoring that has been proven by successful poineers such as GE and American Express
Offshore Outsourcing Advantages:
- Make unlimited resources available at short notice
- You can hire up to 3 offshore resources for the cost of one onshore resource
- There are no employment law constraints for short-term needs
- Provides easy access to skills not available within your organization
Offshore Outsourcing Offshore outsourcing is the delegation of administrative, engineering, research & development, or technical support processes to a third-party vendor in a low-cost location. This page lists drivers that are causing rapid offshore outsourcing growth.
Are you asking these questions?
- How can I cut engineering budget by 50%?
- Should I setup my own Offshore Development Center?
- Should I hire a big outsourcing company?
- Should I not pursue if Ibad experience with outsourcing in past?
- Do I understand why leaders in a variety of industry rapidly formulating and executing offshore outsourcing strategy.
- Do they see a trend that others do not?
- What strategic advantages are the early adopters of the offshore outsourcing model receive?
- Is this a long-term trend or a short-term trend?
Quotes
"Fueled by the Internet and continuous cost reduction imperatives, offshore outsourcing is becoming a "must-have" strategy." - Dr. Andrew Whinston, Hugh Roy Cullen Centennial Chair Professor, University of Texas at Austin
"As a business manager, you need to take a hard look at your core competencies. Revisit the areas of your company that aren't directly involved in those competencies, and consider whether Web technologies can enable you to spin off those tasks. Let another company take over the management responsibilities for that work, and use modern communication technology to work closely with the people - now partners instead of employees are doing the work. In the Web work style, employees can push the freedom the Web provides to its limits." (Source: Time 1999)
Business Pressure Currently USA software professionals needs are significantly more than number of professionals USA can produce. Also, it is projected that Software Professional demand will grow significantly. USA can not afford to loose its dominance in IT. It must promote offshore outsourcing to maitaince lead in the world.
Customer Pressure Another driving force of offshore outsourcing are customers who want more of everything for less money. The companies that don't meet these customer demands quickly go out of business.
Competition Also, there is huge pressure on companies to reduce their engineering cost to outperform their competition.
Other Drivers The following list summaries additional drivers for rapid offshore outsourcing growth:
- Rapid declines in communication and computing costs
- Dramatic improvements in Internet reliablity and functionality
- More offshore vendors with better capabilities and maturity
- High-quality onshore suppliers offering offshore services
- Access to low-cost, high-quality employees, epecially for labor-intensive tasks.
- A business model for offshoring that has been proven by successful poineers such as GE and American Express
Offshore Outsourcing Advantages:
- Make unlimited resources available at short notice
- You can hire up to 3 offshore resources for the cost of one onshore resource
- There are no employment law constraints for short-term needs
- Provides easy access to skills not available within your organization
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