software outsourcing. realities and perspectives: brief overview

Software Outsourcing Realities and Perspectives:

Brief Overview

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www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

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



Cost savings

Operational expertise

Scalability

Access to talent

Improve quality

Cost restructuring

Creating leisure time Tax Benefit

Enhance capacity for innovation


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.


Benefits of OutsourcingTax Benefit

Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country.


Benefits of OutsourcingAccess to Talent

Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering.



UkraineUSA

Time

Work day:9 a.m. – 6 p.m.

Work day:9 a.m. – 6 p.m.

Total: 16 hours a day


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



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.



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.



The globalization of the workforce will continue to emerge and there will be a push to increase the quality of outsourcing skills set.


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.


Outsource Solution

Total Outsource Solution

Market research

Campus branding

Process design

Candidate sourcing

Application process and initial screening

Assessment centre design and

implementation


Thank you!

2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions

www.softheme.com » Outsourcing to Softheme™

Questions??? → [email protected]

software outsourcing. realities and perspectives: brief overview

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