Software Outsourcing Realities and Perspectives:
Brief Overview
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Table of Contents
Facts About Outsourcing
Benefits of Outsourcing
Reasons Companies Outsource
Future Trends in Outsourcing
Outsource Solution
Facts about Outsourcing When the idea of outsourcing was first brought in, in the 1970s, it
was only the manufacturing companies that contracted out their job functions
One in 5 UK workers at risk from outsourcing have difficulties reading and writing. The UK struggles to turn out just 8,000 IT graduates a year
Future economic growth depends on new generations of creative, dynamic entrepreneurs, with good access to venture capital, who will drive national economies through transition
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Benefits of Outsourcing
Cost savings
Operational expertise
Scalability
Access to talent
Improve quality
Cost restructuring
Creating leisure time Tax Benefit
Enhance capacity for innovation
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Benefits of OutsourcingCost savings
The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring. Access to lower cost economies through offshoring called "labor arbitrage" generated by the wage gap between industrialized and developing nations.
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Benefits of OutsourcingTax Benefit
Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country.
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Benefits of OutsourcingAccess to Talent
Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering.
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Benefits of Outsourcing
UkraineUSA
Time
Work day:9 a.m. – 6 p.m.
Work day:9 a.m. – 6 p.m.
Total: 16 hours a day
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Reasons Companies Outsource55%
54%
38%
36%
25%
20%
18%
12%
12%
10%
Improve company focus
Reduce and control operating costs
Free resources
Gain access to world-class capabilities
Resources not available internally
Accelerate reengineering benefits
Reduce time to market
Take advantage of offshore capabilities
Share risks
Function difficult to manage or out of control
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Future Trends in Outsourcing
India and China resort to more skill-oriented outsourcing, the questions that the United States would increasingly need to ask is: why should a software guy with the same qualifications be paid more in the US, when there is a similar guy in India willing to do the same job at one-fourth the cost.
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Future Trends in Outsourcing
Outsourcing is continuously expanding when it comes to vertical industry reach as well as geographic scope. Best-shoring is now considered the best emerging strategy for outsourcing business.
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Future Trends in Outsourcing
The globalization of the workforce will continue to emerge and there will be a push to increase the quality of outsourcing skills set.
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Future Trends In Outsourcing
Management challenges will become more pressing as the increase in global salaries dissipate the easy cost gains from offshore outsourcing. Furthermore, the successful companies in the future will be those that take advantage of global talent to help transform the company and their industry while still providing jobs for everyone.
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Outsource Solution
Total Outsource Solution
Market research
Campus branding
Process design
Candidate sourcing
Application process and initial screening
Assessment centre design and
implementation
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