It is generally held as a good idea to turn IT operations and especially IT development over to external providers, as it significantly saves on staff, equipment, training and maintenance, as well as it allows customers to concentrate more on business. However, the lack of IT professionals in developed countries reached critical proportions, with 340, 000 vacant IT positions in the USA alone. This fact makes outsourcing increasingly challenging and expensive. The solution is, therefore, to go offshore.
Offshore development is usually defined as the practice of moving software and other IT work, such as project analysis, design, coding, testing, and maintenance from companies in developed countries to software companies in low-wage areas. Nearly all of the Fortune 500 companies use offshore development services or have their own branches set up offshore. Major hardware and software giants like Microsoft, IBM, Apple, Novell, Sun and Siemens have extensive offshore operations. Many of the world's famous software applications are developed offshore, either partially or completely.
Offshore operations can provide a lot of benefits, including:
• Technical Competence: top IT professionals are available offshore and they can work for you.
• Quality:
• Costs:
• Start-
• Protection:
Financial protection is also guaranteed as payments are made only when specific milestones have been achieved. In addition, it is quite usual now for offshore companies to offer fixed-price solutions on guaranteed deadlines.
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