| Why
Outsource software development to India ? |
| Top
Five Strategic Reasons For Outsourcing |
 |
| Improve
Business Focuss |
|
| Outsourcing allows companies
to focus on broader business issues while
having operational details assumed by an outside
expert. For many companies, the single most
compelling reason for outsourcing is that
several of the how type issues are siphoning
off huge amounts of resources and attention
from management. |
|
| Gain
Access To World Class Capabilities |
|
| By the very nature of their
specialisaton, outsourcing providers bring
extensive world- class resources to meeting
the needs of their customers. Partnering with
an organization with world-class capabilities
can offer access to new technology, tools
and techniques that the organization may not
currently possess; more structured methodologies,
procedures and documentation; and a competitive
advantage through expanded skills. |
| |
| Accelerate
Reengineering Benefits |
| |
| Outsourcing is often a by-product
of another powerful management tool; business
process reengineering. It allows an organization
to immediately realize the anticipated benefits
of reengineering by having an outside organization
one that is already reengineered to world-class
standards/process |
| |
| Share
Risks |
| |
| There are tremendous risks
associated with the investments an organization
makes in information technology. When companies
outsource they become more flexible, more
dynamic and better able to change themselves
to meet changing opportunities. |
| |
| Redirect
IS Resources To More Strategic Activities
|
| |
| Every organization has limits
on the resources available to it. Outsourcing
permits the redirection of resources from
non-core activities toward activities that
provide a greater return in serving the customer.
|
| |
| Top
Five Tactical Reason For Outsourcing |
| |
| One
Time Applications |
| |
| Applications that need to
be developed or modified for a specified time
require high manpower resources at one point
of time. For this the organizations need to
ramp up/ ramp down in a relatively short notice.
This in-turn is expensive. For this outsourcing
is the best solutions. For eg. Y2k, Euro,
porting from one-platform to another etc.
|
| |
| Reduce
Or Control Operating Cost |
| |
| The single most important
tactical reason for outsourcing is to reduce
or control operating costs. Access to an outside
provider's lower cost structure is one of
the most compelling short-term benefits of
outsourcing. In a recent outsourcing Institute
survey, companies reported that on average
they saw a 9% reduction in costs through outsourcing.
|
| |
| Make
Capital Funds Available |
| |
| Outsourcing reduces the need
to invest capital funds in non-core business
functions. This makes capital funds more available
for core areas. Outsourcing can also improve
certain financial measurements by eliminating
the need to show return on equity from capital
investments in non-core areas. |
| |
| Generate
A Cash Infusion |
| |
| Outsourcing can involve the
transfer of assets from the customer to the
provider. Equipment, facilities, vehicles
and licenses used in current operations all
have a value and are, in effect, sold to the
provider as part of the transaction, resulting
in a cash infusion |
| |
| Secure
Resources Not Available Internally |
| |
| Companies outsource because
they do not have access to the required resources
within the organization. For example, if an
organization is expanding its operations,
especially into a new geography, outsourcing
is a viable and important alternative to building
the needed capability from the ground up.
|
| |
| Offshore
Development Benefits |
| |
| Flexibilty
In Staffing Levels And Skill Sets |
| |
| No one likes to lay off staff,
but the unpredictable nature of demand sometimes
requires it. On the other hand, recruiting
candidates with the appropriate skill sets
and experience and bringing them up to speed
in your environment can be a daunting and
time-consuming proposition - diverting resources
from your core mission. |
| |
| Outsourcing companies like
Digital Mesh have more projects and can thus
manage staffing capacity much more efficiently.
If you don't need our developers anymore,
we just reassign them to something else. Outsourcing
allows you to transform your IT budget from
a fixed to a variable cost. |
| |
| Experience |
| |
| There
are three broad areas of IT expertise |
| |
| Business Analysis (knowing
how a business works and how software can
improve things); Technical Skills (the power
cord is connected to the power supply, the
power supply is connected to the heat fan,
etc); and Project Management Skills (what
has to happen to get some work done on time
and on budget).
Your company may be good at all these things
or at none of them. IT outsourcers may also
be good at all three or at none of them.
The market is fragmented and it's hard to
judge quality unless you already know somebody
who has worked with a company before. One
way to find out would be to hire a consultant
who can assess the outsourcer. Another way
is to execute a short project with the outsourcer.
If you are considering a long-term relationship,
either may be a smart investment. |
| |
| Flexibility |
| |
| Offshore Software Development
is synonymous with flexibility. When facing
a large project but of short duration, you
can use Offshore programming to limit the
number of new employees and administrative
support personnel. Digital Mesh allows you
to double the number of programmers you have
access to and better yet, we are just a phone
call away. |
| |
| Cost Benefits |
| |
| For start-up companies, the
benefits of Offshore Software Development
can be monumental for the simple fact that
it allows you to go farther on your VC funding.
The costs of Offshore software Development
are much lower than hiring programmers to
fulfill your design. Our past experience with
our international clients makes us very confident
that we will deliver the best possible quality,
at significant cost savings to you, every
time! . Offshore outsourcing price-wise is
hard to beat. |
| |
| Independence |
| |
| Offshore development offers
another major advantage: independence. Most
software vendors or investors cannot conduct
independent analyses of their own or their
competitors' products. Digital Mesh not only
performs development work but also can obtain
the competition's software for evaluation
purposes for clients. This ability allows
us to ask the questions you want answered
and not disclose client identity. |
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1999-
Digital Mesh Softech India (P) Limited, Kochi.