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Outsourcing
has long passed the fad or buzzword stage. It is now an IT
trend which has grown, matured and lived upto its potential.
It has become increasingly popular with companies that wish
to cut costs while gaining access to world-class software
engineers. The significant savings attached to an offshore
outsourcing project have lured most of the Fortune 500 companies
worldwide. On average companies report 40% to 60%
in net savings with the help of Offshore IT Outsourcing.
Offshore
software development in India is targeted by half of all the
fortune 500 companies today. India's advantage over other
competing destinations in offshore IT outsourcing business
is a vast pool of educated human resource, world-class quality
offerings and ever encouraging Government policies for the
IT sectors.
Key
benefits of software outsourcing :
| Cost Efficiency |
Labor cost
savings may reach 90% for routine low-level tasks as compared
with in-house development in North America and Western
Europe.
Significant reduction of development time and, thus, speed-to-market
becomes invaluable advantage in a present-day competitive
environment. |
| Availability
of trained IT staff |
Immediate
access to a large pool of best industry talents allows
to overcome hiring gap for IT professionals in the developed
countries. |
| Flexible
manpower utilization |
By using
outsourcing model company cuts down its housing, recruiting
and training expenses.
Proven development process and quality management system.
Development risk minimization. |
| No up-front
investments |
No up-front
investments on the customer's part. |
Outsourcing
is not just a strategy of cost reduction. It is in fact, a
strategic service and essential element of growth.
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