Software Outsourcing. Realities and Perspectives: Brief Overview

Software Outsourcing
Realities and Perspectives: Brief Overview
www.softheme.com

Table of Contents
Facts About Outsourcing
Benefits of Outsourcing
Reasons Companies Outsource
Future Trends in Outsourcing
Outsource Solution
www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Facts about Outsourcing
When the idea of outsourcing was first brought in, in the 1970s, it was only the manufacturing companies that contracted out their job functions
One in 5 UK workers at risk from outsourcing have difficulties reading and writing. The UK struggles to turn out just 8,000 IT graduates a year
Future economic growth depends on new generations of creative, dynamic entrepreneurs, with good access to venture capital, who will drive national economies through transition

Operational expertise
Access
to talent
Cost restructuring
Cost savings
Scalability
Improve quality
Creating leisure time
Tax Benefit
Enhance capacity for innovation

Cost savings
The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring. Access to lower cost economies through offshoring called "labor arbitrage" generated by the wage gap between industrialized and developing nations.

Tax Benefit
Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country.

Access to Talent
Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering.

Time
Work day:
9 a.m. – 6 p.m.
Work day:
9 a.m. – 6 p.m.
Total: 16 hours a day

Reasons Companies Outsource
55%
Improve company focus
54%
Reduce and control operating costs
38%
Free resources
Gain access to world-class capabilities
36%
25%
Resources not available internally
20%
Accelerate reengineering benefits
18%
Reduce time to market
12%
Share risks
12%
Take advantage of offshore capabilities
Function difficult to manage or out of control
10%

India and China resort to more skill-oriented outsourcing, the questions that the United States would increasingly need to ask is: why should a software guy with the same qualifications be paid more in the US, when there is a similar guy in India willing to do the same job at one-fourth the cost.

Outsourcing is continuously expanding when it comes to vertical industry reach as well as geographic scope. Best-shoring is now considered the best emerging strategy for outsourcing business.

The globalization of the workforce will continue to emerge and there will be a push to increase the quality of outsourcing skills set.

Future Trends In Outsourcing
Management challenges will become more pressing as the increase in global salaries dissipate the easy cost gains from offshore outsourcing. Furthermore, the successful companies in the future will be those that take advantage of global talent to help transform the company and their industry while still providing jobs for everyone.

Outsource Solution

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2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions
www.softheme.com»Outsourcing to Softheme™

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Software Outsourcing. Realities and Perspectives: Brief Overview

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