Benefits of Offshore IT outsourcing

In today's business world, outsourcing is seen as a strategic management option rather than just a way to cut costs. Companies are able to achieve their business objectives through operational excellence and an edge in the market place. The approach and technique of doing business has changed over the years. Nowadays, every company has one or more of its services outsourced so that it can focus more on its core competencies. The parent company transfers or shares control of a business to a third party that monitors all organization functionalities. When the service provider is located in another country the concept of offshore outsourcing comes. Outsourcing is a powerful business tool that adds versatility and flexibility. IT Outsourcing is the business processes significantly outsourced by organizations. Developed nations are adopting the Offshore IT outsourcing approach to reduce the costs to the company.

By outsourcing IT jobs to offshore countries with lower economies, outsourcers can increase their profit margin and focus on core business activities. Every company today, has one or more of its services outsourced because outsourcing gives you the right combination of people, processes and technology to operate effectively in the Global market place. For Offshore IT outsourcing, India is certainly one of the preferred destinations for organizations world over.

An organization that is not into IT business may find it difficult to rapidly adapt to new technologies. The costs involved in developing new applications and maintaining existing applications/databases/infrastructure could be reduced by means of offshore IT outsourcing. Moreover, lot of effort and expense goes in training and/or recruiting qualified IT personnel.

The companies that take on outsourced work, such as Business Process Outsourcing can handle various aspects of IT works such as software developing and testing, help desk support and data entry and processing. Offshore IT companies hire proficient professionals to develop software such as .NET, Java/J2EE, wireless/mobile application developments, database solutions and smartcard solutions among others. These professionals are either permanent employees of the offshore BPO, or they may be hired on a contractual basis.

India is indisputably the hub of outsourced IT work - mostly from America. The IT professionals work can save a lot of time, money and add fuel to the foreign economy. The outsourcers prefer their offshore counterparts to be in-sync with the latest technology. BPOs hire their employees from a pool of qualified people who have extensive IT knowledge.

The benefits gained by the client by offshore IT outsourcing are:

• To be able to focus resources and attention on core business initiatives
• Reduction in headcount and attrition rates in the outsourced function
• Refinement of project management, risk management, and service delivery skills
• Implementation of demand management and service delivery disciplines
• Optimization of systems management and support processes
• Access as needed to specialized resources
• Joint and proactive problem solving and innovation
• Superior management of the business application portfolio

Focusing on core competencies enables companies to be efficient without having to increase investments in people or technology.