Myths Vs Facts, Offshore Software Development Is Here To Stay

Offshoring of business processes is an accepted way of working and gets identified the most within the information technology industry. When it comes to outsourcing for software development, US leads in business it sends outside the country. A large number of jobs, projects, and activities outsourced from the US to other countries constitute the basic livelihood of multiple, small to large IT companies globally.

Statistically speaking, surveys indicate that offshore software development is a conducive situation for the service provider country as well as the US. However, whether outsourcing leads to an overall positive impact within the country, or do their own nationals lose jobs has always remained a debatable topic.

In spite of challenges, constraints, and myths surrounding offshoring, it is here to stay over the coming years.

Dice survey indicates that enterprises within US & Europe may outsource as many as 750 thousand jobs in 2016 only, and the trend will continue till the beginning of the next decade. A noticeable aspect from the last few years is that the Asian countries are not the only option for the USA when it comes to outsourcing. Robust growth along with the growth of technical skillset has made Eastern Europe also a desirable destination with it comes to offshore development.

The US IoT / M2M market is likely to exceed $1.5 billion in 2016, and the advances in technology will also impact the type of jobs outsourced. The quality-centered approach, focus on Cloud shift, enhanced security & data analytics are parameters to look out for in the offshore outsourcing matrix.

The Myths Surrounding Offshore Software Development

  • IT Engineers in USA Lose Jobs

This is not necessarily true. In fact, the US has a sizeable demand for the right IT professionals, and majority enterprises are just focused on offshoring very routine activities that can be performed remotely.

There are challenges with the availability of required talent within the US when it comes to local hiring as well, especially if an organization is looking to build a team of developers.

  • Security Risks Rise

It is vital to have a trusted IT partner who is appropriately benchmarked and possesses desirable testimonials. Security challenges could result in-house as well as with a local partner, so the perceived risks are not just limited to offshoring.

Offshore software development companies prepare safety-first contracts where the security liability is often on them, so US enterprises willing to offshore just need to select the right supplier. Strong measures can be agreed in advance and put as part of contractual commitments in terms of data privacy and intellectual property.

  • Time Zone Gap Cannot Be Managed

Actually, the time gap is beneficial for continued operations round the clock. When it comes to software development, the speed at which tasks get completed reaches a maximum.

  • Skilled Developers May Not Be Available Offshore

Skill development and appropriate deployment is something that IT organizations simply excel at, so enterprises within the US should remain assured that their solutions and product get developed with due maturity.

In fact, chances to find better-prepared developers with enriched exposure to multiple projects are more with offshore organizations than with enterprises within the US.

  • Offshoring Brings Communication Gap

Enhancements in communication technologies, coupled with robust infrastructure at offshore locations have seamlessly merged the communication as well as cultural gaps.

Advantages of Offshoring

  • Increased Cost-Effectiveness

Offshoring can reduce routine operational IT costs starting from a very basic 20% to as high as 50% also, based on the model selected an agreement with the service provider. Local hiring and employment could prove to be expensive, while a fixed-price or hourly model with offshoring definitely lends an advantage from the cost perspective.

  • Keep Focus on Core Functionalities

Organizations into non-IT industry verticals get relieved from the stress and overhead of hiring, retaining and managing IT professionals. For such enterprises, as IT is a means of supporting their end objective or product, it makes much more sense to offshore routine operational activities or software development and maintenance, as the IT supplier possesses core competence and would have significant scalability and expertise in terms of resource modeling.

  • Work Gets Done 24 x 7

Offshoring IT operations or software development from the US to IT companies within Asia literally means 24×7 service delivery. Many enterprises within the USA have adopted the “follow the sun” or “onsite-offshore” model for superior IT delivery.

Some organizations have even gone a step ahead and outsourced total 24×7 support to offshore IT service providers across the globe to make the most of the different time zones.

  • Assured Quality

IT service providers generally rely on industry-standard benchmarks, such as CMMI or ISO. Dedicated IT organizations are known to invest in superior in-house practices as well to ensure the quality of deliverables is up to the mark always, resulting in long-term engagement with customers.

Enterprises who have limited IT awareness can definitely make the most of the quality of the software products and solutions created by worthy collaborations.

  • Commitment to Timelines

IT service providers remain committed to timelines for every milestone. Well analyzed estimations are charted out for right from design to delivery & testing phases, and compliance at all levels is appropriately demonstrated.

  • Contemporary Technology

IT suppliers remain at the forefront of technology changes. Enterprises are willing to offshore leverage the benefits of the latest technology and tools. Once again, IT would probably not be the core competency of organizations willing to offshore, and hence the technology acumen brought by service providers is a huge advantage.

On a Parting Note

India remains an unchallenged leader in the global offshore software development industry, maintaining its dominance in spite of the many challenges posed by others in the race, especially Asian counterparts like China and the Philippines. The Indian software outsourcing facilities undergo a constant metamorphosis and enterprises from the western world make the most of the world-class facilities offered in India and the model becomes a win-win situation for all.

Author: SPEC INDIA


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