Outsourcing Benefits
Software Outsourcing has long passed the fad or buzzword stage. It has now become an IT trend which has grown, matured and lived up to its potential. Almost all phases of Software lifecycle from analysis and development to maintenance are being outsourced. Its popularity is increasing among 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. 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
- People 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 overcoming 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."