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Offshore-Outsourcing need of the hour ?

By subodh ·
Initially outsourcing software development to offshore suppliers was seen as a cost-cutting approach used by a few big U.S. companies to offload mainframe maintenance, Y2K readiness, and other assorted IT grunt work. However now, fast-growing Internet startups, midsize businesses, and dozens of major companies are using offshore suppliers not just for maintenance and reengineering, but also to develop sophisticated new applications and web enablement.

The biggest reason is the shortage of ITtalent in some of the world’s largest economies. A recent study by the Information Technology Association of America (ITAA) finds a national IT workforce of 10.4 million in the US. Add to this total an additional 900,000 workers that companiessay they hope to hire this year. Of this total, 425,000 positions will go unfilled because of a lack of applicants with the requisite technical and non-technical skills. Companies say it's almost impossible to find enough good developers - and even the not-so-good ones cost a fortune. In contrast, areas such as India and Eastern Europe have access to thousands of software developers, many with Java and other Internet-related skills, available for $20 to $40 an hour. In India alone, there are 1,832 educational institutions and polytechnics training close to 110,000 computer professionals each year.

Offshore software development provides you access to world-class solutions from areas of the world where operating costs are much lower thanin the west. And time zone differences are a big help, too. For example, the average difference of 10 hours between the U.S. and India is perfect for accelerated and "round-the-clock" problem solving. A client reporting a bug from the U.S. at the end of the day could get the fix from India by the next morning.

All these reasons sum up to saying that Offshore-Outsourcing is the need of the hour.

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This is not an advertising forum

by James R Linn In reply to Offshore-Outsourcing need ...

so stop plugging.

In my mind whenever someone tries to sell me a silver bullet, the hair on the back of my neck goes up.

There is no hard and fast answer to say that outsourcing is good or bad. It depends on the circumstance.

Outsourcing is not the sole answer to anything.

James

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