Benefits of IT Outsourcing Services in India, Offshore Software Development

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IT Outsourcing Services in India and the Lessons it Teaches Us

October 09, 2018 by Syed Zainul Haque under Offshore outsourcing Outsourcing1,179 views
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Outsourcing has played an effective role in India over the decades. According to various surveys by one of the leading organization in the United Kingdom, KPMG, it was found the business firms prefer India than any other countries to offshore their work.

The IT outsourcing in India has helped various leading organizations to achieve success in their major objectives with the aid of the talented manpower and also cheaper labor costs. The skilled professionals with effective labour costs have attracted companies like Hewlett-Packard, Dell Computer Electronics, ATT wireless, Oracle, Avaya, and many other renowned organizations. They have also partnered with several Business Process Outsourcing firms to create a new milestone. Every minute elements are been noticed and have opened up a learning environment to upscale the business on a daily basis.

There are loads of stories that have got tags like Success or failure. The case studies have revealed certain moral that created awareness across the mass. The IT outsourcing in India has engineered in Mobility and IoT which have created and opened up a smarter analytics team which is integrated with the business team. Various models are created to make the business get growth across the global market.

Before going to the lessons, here are some interesting facts on IT outsourcing in India which would give you a better understanding.

Interesting Facts on IT Outsourcing Services From India

More companies were opting for outsourcing which seemed like a good and wise idea in the 1980s. But now it is dying down. The main reason for this downfall in the trend of outsourcing is the savings which were once realized by outsourcing contractors are not as profitable as it used to be before.

Quick Facts:

  • Approximately 3,00,000 jobs are being outsourced by various U.S companies to India and China.
  • The top-most reason to opt for outsourcing by several organizations is “Cost-Reduction“.
  • On an average 30% of the overhead cost is reduced by outsourcing.
  • According to a survey in 2016, the revenue created by of the global outsourcing industry is a whopping $507 million.
  • It is estimated that the global online freelance workforce generates anywhere between one to two billion on a yearly basis.
  • Approximately 60% of the world’s outsourcing market comprises of IT employees.

Read more on 8 Amazing Business Benefits of Choosing the Right Software Outsourcing Partner

Offshoring and Outsourcing – Do these both terms mean the same thing?

Even today, most of the people are unsure of the proper meaning of offshoring and outsourcing.

  • Offshoring is taking a particular activity and moving it to an offshore location (eg. a different country) but it is wholly owned by you.
  • Outsourcing means giving a particular activity of your organization to another company who manages its activities. Outsourcing can be done in the same city as well.

Here is a brief on the lessons:

  1. Process For Conflict Resolution: Handling of negotiations and conflict is a vital element that would help in creating more problem solvers, coming up with innovative solutions. Conflicts can happen due to lengthy contracts with confusing phrases which become exhausting. Using one of the several platforms such as Asana, Basecamp, Redbooth and Process Street can help in maintaining a clear understanding with the outsourced partner, hence, avoiding conflicts.
  2. Expert Advice in No Time: Being realistic and getting a subject matter expert at a very stringent time is always been a challenge that has got addressed with positive results.
  3. Bridging Communication Gap: A new focus has been developed with the architecture of a communication infrastructure. Tools such as Atlassian JIRA, a project management tool specially created for software development teams including agile project management is used widely for bridging the communication gap. Other tools such as Trello, Slack, BitBucket, and GitHub are quite commonly used as well.
  4. Stronger Support: Diversified knowledge on the areas of Support in Software development lifecycle has built experts of implementations. Docker, a software containerization platform allows you the benefit to run the software irrespective of its environment. Intellij, an Integrated Development Environment comprises of a compiler, a debugger, and code editor – in short, all tools to create a platform. Other tools such as Jira, Feedly, and Jenkins are used for offering stronger software support.
  5. Tailored to be Cost Effective: The outsourcing has majorly built up the areas to understand the effective cost model, which is the prime reason for offshoring a particular business.
  6. Core Focus on Key Strengths: The growth of the business is all time focus, which has helped to learn the key strengths. Competition has always been a challenge; however being open to those challenges would help in gaining more expertise and would develop proficiency in achieving solutions.
  7. Secured and Confidential Project Completion: The administrative works opened up these major processes that have got the ability in securing the project confidentiality, defining the major objectives, Quality assurance, Work Reviews, Building up payment gateways and setting up protocols. Tools such as HP Unified Functional Testing (UFT), IBM Rational Functional Tester, Worksoft Certify, Parasoft SOAtest, and Apache JMeter can be used for Quality assurance.
  1. Talent at a Reasonable Cost: It has created a pool of talented people who are open to work at a cheaper cost with no hindrance in the quality and quantity standards. The flexibility should be a major understanding while scaling up the business for a real growth.

Outsourcing has become a major part in the global development. IT outsourcing in India has achieved proficiency in distributed software engineering.

There are lots of benefits that have acknowledged all the risks and ensured achievements. The ‘Strategic Planning’ approach along with the service provider selection has created a new business approach in a long run.

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