Software Outsourcing. Realities and Perspectives: Brief Overview
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Software Outsourcing. Realities and Perspectives: Brief Overview

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Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core ...

Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business. An insurance company, for example, might outsource its janitorial and landscaping operations to firms that specialize in those types of work since they are not related to insurance or strategic to the business.

This presentation is about the future of software outsourcing. It contains some new facts about outsourcing development progress.

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Software Outsourcing. Realities and Perspectives: Brief Overview Software Outsourcing. Realities and Perspectives: Brief Overview Presentation Transcript

  • 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
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • Benefits of Outsourcing
    Operational expertise
    Access
    to talent
    Cost restructuring
    Cost savings
    Scalability
    Improve quality
    Creating leisure time
    Tax Benefit
    Enhance capacity for innovation
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • Benefits of Outsourcing
    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.
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • Benefits of Outsourcing
    Tax Benefit
    Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country.
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • Benefits of Outsourcing
    Access to Talent
    Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering.
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • Benefits of Outsourcing
    Time
    Work day:
    9 a.m. – 6 p.m.
    Work day:
    9 a.m. – 6 p.m.
    Total: 16 hours a day
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • 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%
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • Future Trends in Outsourcing
    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.
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • Future Trends in Outsourcing
    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.
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • Future Trends in Outsourcing
    The globalization of the workforce will continue to emerge and there will be a push to increase the quality of outsourcing skills set.
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • 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.
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • Outsource Solution
    www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
  • Thank you!
    Questions???->info@softheme.com
    2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions
    www.softheme.com»Outsourcing to Softheme™