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Offshore Outsourcing
Enterprises have been outsourcing for a very long time and outsourcing
in Information Technology and Manufacturing has become more
popular over the past decade.
Outsourcing has a number of benefits for the enterprise
1. It reduces the strain on resources and top management time
by delegating a large set of activities to another organization
that has a focus on only these activities.
2. The enterprise gains from the experience of the service provider
who in turns keeps adding knowledge and experience with each
engagement and by working with multiple enterprises is able
to build a more comprehensive and diverse perspective and experience
profile.
3. Outsourcing results in reduced costs due to economies of
scales and better cost management by the service provider.
4. The heavy cost of research and development is borne by the
service provider. Enterprises would not be able to put in these
resources and focus into a non-core area of their business.
5. Outsourcing helps the enterprise focus on its own core-business
areas that really create competitive advantage.
Outsourcing is today becoming global as markets become increasingly
competitive. Enterprises are today concerned with cutting costs
while retaining quality and innovation and for this they are
willing to source from anywhere in the world.
The cost of doing commerce and managing logistics across countries
is substantially lower and governments have also helped by making
procedures less cumbersome and quicker.
Offshore outsourcing is therefore the new buzzword for enterprises
especially in countries like United States of America, United
Kingdom, Germany, Japan, South Korea and Australia that have
higher cost structures.
Offshore outsourcing in Information Technology means outsourcing
an entire activity in the technology area to a company that
delivers this as a service. Some examples of IT offshore outsourcing
are
1. Software development and maintenance of an application is
assigned to a company that manages all that is required to ensure
the application works well for the enterprise and meets user
needs.
2. Network and server administration that requires 24 hour monitoring
every day of the year and can in most cases be done from anywhere
in the world.
3. Help desk operations for the employees in the company for
technical support, problem resolution and facilities management
with communication through email, chat and telephone.
4. Software product research and development through the process
of product launches, versioning, support and integration.
IT Offshore Outsourcing has some of the largest corporations
playing a key role including EDS and IBM. India leads as IT
offshore outsourcing service provider but other countries including
Canada, China, Romania and Russia are also beginning to look
at this area and build competencies to address this growing
market.
Global Leaders in Offshore Outsourcing include:
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Tata Consultancy Services |
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EDS |
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IBM |
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Infosys Technologies |
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Wipro |
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Satyam |
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HCL Technologies |
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