"We have been
working with [ITC Software] for more than 2 years now. We
started with contract basis work and finally came to ODC
which is completely dedicated for our tasks. High team
stability, good proficiency and efficient administration
support are the factors which bring high value to our
collaboration." ..../more
"Don’t own a cafeteria: Let a food company do it. Don’t run a print shop: Let a printing company do that. It’s understanding where your real value added is and putting your best people and resources behind that.
Back rooms by definition will never be able to attract your best. We converted ours into someone else’s front room and insisted on their best. This is what outsourcing is all about."
Acquisition of cash through liquidation of computers and the decrease in depreciation expense
Convert costs centre within company to profit centre within vendor’s operation
Focus on core activities
Refocus organization
Reengineer processes
Accommodate business need to downsize.
Outsourcing non-core business functions frees internal resources to focus on business-critical tasks
Improved operational quality
Address system integration issues
Access to improved backup and disaster recovery facilities
Increased expertise - benefit from the core business expertise of specialized partners (customers can choose an offshore facility that is specialized in a particular vertical market segment)
Incremental increases in data processing resources rather than a step function
We have adopted third-party quality standards (CMM, ISO) which, in many instances, are more rigorous than those of our clients
Improved productivity
Realization or economies of scope (efficiencies driven by variety, not volume)
Increased flexibility
Improved time-to-market
T
he integration of on- and offshore software development teams across time zones leads to 24/7 output and faster time-to-deployment
De-risk business
Increased access to diverse technologies
Access to technology without capital investment.
Access to major and immediate changes
Distributed and thus lowered risk of running an IT operation
Employment costs per U.S. junior - middle level engineer (including operational overheads and employee benefits package including health insurance, 401k etc. Typically, a W2 salary of 60K results in a loaded cost of about 100k) amounts to $100,000.00 per annum. (Source: Russian Outsourcing Forum (ROSS) Saint-Petersburg in 2002.)
A McKinsey study shows that, when processes are outsourced to India, companies not only get the advantage of low cost but also experience improvement in productivity and Quality. (Source: NASSCOM Mckinsey Study 2002 and, Gartner)
Also see: Benko, C. (1992) If information systems outsourcing is the solution, What is the problem?, Journal of Systems Management, Nov., p.32-35.
The establishment of offshore operations can also position you to create new markets for your products. According to Software Development, Vol 11, # 11, Sunjay Sarathay, director of Sun's Developer Program Office, pointed out that Indian developers are the number two group after the U.S. in registered users with the program or Sun's tools.
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A McKinsey study shows that, when processes are outsourced to India, companies not only get the advantage of low cost but also experience improvement in productivity and Quality. (Source: NASSCOM Mckinsey Study 2002 and, Gartner)
