The document discusses software outsourcing, including why companies outsource, when to outsource, and what functions to outsource. It notes that firms outsource to improve productivity and flexibility. Key factors supporting outsourcing include short product lifecycles and a focus on customers. Functions like IT, customer support, and R&D are common areas of outsourcing. Companies must identify core competencies to determine what is best to outsource versus keep in-house.
ERP in logistics and supply chain management
Value chain analysis , understanding, ERP system in logistics, software as a service, supply chain solutions through erp
Case Study Ups Competes Globally with Information Technology
At the most basic level, an information system (IS) is a set of components that work together to manage data processing and storage (Henry et al., 2004). Its role is to support key aspects of running an organization, such as communication, record-keeping, decision-making, data analysis, and so on. Companies use this information to improve their business, make strategic decisions and gain competitive advantages (SalemAl-Mamary et al., 2014).
Suma Soft has been the top Logistics Process Outsourcing Services provider for leading 3PL and Supply Chain Companies in UK, USA & Canada. Read More- http://bit.ly/29EAZDh
ERP in logistics and supply chain management
Value chain analysis , understanding, ERP system in logistics, software as a service, supply chain solutions through erp
Case Study Ups Competes Globally with Information Technology
At the most basic level, an information system (IS) is a set of components that work together to manage data processing and storage (Henry et al., 2004). Its role is to support key aspects of running an organization, such as communication, record-keeping, decision-making, data analysis, and so on. Companies use this information to improve their business, make strategic decisions and gain competitive advantages (SalemAl-Mamary et al., 2014).
Suma Soft has been the top Logistics Process Outsourcing Services provider for leading 3PL and Supply Chain Companies in UK, USA & Canada. Read More- http://bit.ly/29EAZDh
Digitization in supply chain managementHae-Goo Song
Many people are stressing the importance of digitization in SCM. Haven't we been trying to represent the real supply chain on the digital model for the last 25+ years? What's really new to supply chain management if we implement the digital enterprise? More importantly, what's the real opportunities from the supply chain management perspective?
When planning on producing a new product and/or service, the key factor is the product and service design. Successful designs come down to these basic principles: translate customers' wants and needs, refine existing products and services, develop new products and services, formulate quality goals, formulate cost targets, construct and test prototypes, document specifications, and translate products and service specification into process specifications. The process of design has certain steps that include motivation, ideas for improvement, organizational capabilities, and forecasting. In the product process innovations, research and development play a significant role. Because of the influence a product and service design can have on an organization, the design process is encouraged to be tied in with the organization's strategy and take into account some key considerations.
Companies choose various ways to design their products and the type of services they provide. Which include: standardization, mass customization, delayed differentiation, modular design, and robust design deciding which method to use is very important along with deciding the company's target market. Deciding the right method, establishes good productivity and efficient way of operations.
Digital Supply Chain: the start of a new eraBluecrux
95% of Supply Chain leaders struggle with how to drive improvement in their Supply Chain and only 5% are making progress.
In this presentation, you'll get a market overview of emerging technologies and approaches you can apply to drive value. Are you ready to become part of that 5%?
Presented by Lora Cecere, Founder Supply Chain Insights on Supply Chain 4.0 : ready to operate in the digital era? (29 Nov, 2018)
Slides contain the concept of Just in Time and Lean production Systems which lead to eliminate kinds of wasting in order to increase the quality of product to match customers' needs.
This presentation deals with the basics of Supply Chain Management.It gives short notes on what is it that makes a complete supply chain network and industrial terminologies are explained here.
Coupa Crank Up the savings roadshow presentation. See how your company can save by using innovative on demand spend management software. Presentation from analyst Jason Busch
Software Outsourcing: Pitfalls and Best PracticesSitrusLLC
When to outsource (and when not to)
Typical projects
Key issues with outsourcing
Most common reasons projects fail
Best practices
Questions to ask your potential partner
Digitization in supply chain managementHae-Goo Song
Many people are stressing the importance of digitization in SCM. Haven't we been trying to represent the real supply chain on the digital model for the last 25+ years? What's really new to supply chain management if we implement the digital enterprise? More importantly, what's the real opportunities from the supply chain management perspective?
When planning on producing a new product and/or service, the key factor is the product and service design. Successful designs come down to these basic principles: translate customers' wants and needs, refine existing products and services, develop new products and services, formulate quality goals, formulate cost targets, construct and test prototypes, document specifications, and translate products and service specification into process specifications. The process of design has certain steps that include motivation, ideas for improvement, organizational capabilities, and forecasting. In the product process innovations, research and development play a significant role. Because of the influence a product and service design can have on an organization, the design process is encouraged to be tied in with the organization's strategy and take into account some key considerations.
Companies choose various ways to design their products and the type of services they provide. Which include: standardization, mass customization, delayed differentiation, modular design, and robust design deciding which method to use is very important along with deciding the company's target market. Deciding the right method, establishes good productivity and efficient way of operations.
Digital Supply Chain: the start of a new eraBluecrux
95% of Supply Chain leaders struggle with how to drive improvement in their Supply Chain and only 5% are making progress.
In this presentation, you'll get a market overview of emerging technologies and approaches you can apply to drive value. Are you ready to become part of that 5%?
Presented by Lora Cecere, Founder Supply Chain Insights on Supply Chain 4.0 : ready to operate in the digital era? (29 Nov, 2018)
Slides contain the concept of Just in Time and Lean production Systems which lead to eliminate kinds of wasting in order to increase the quality of product to match customers' needs.
This presentation deals with the basics of Supply Chain Management.It gives short notes on what is it that makes a complete supply chain network and industrial terminologies are explained here.
Coupa Crank Up the savings roadshow presentation. See how your company can save by using innovative on demand spend management software. Presentation from analyst Jason Busch
Software Outsourcing: Pitfalls and Best PracticesSitrusLLC
When to outsource (and when not to)
Typical projects
Key issues with outsourcing
Most common reasons projects fail
Best practices
Questions to ask your potential partner
Software Outsourcing: Outsource Your Project or Build a TeamSoftheme
This presentation is about two different models of outsourcing - project-based and team-based outsourcing. Read through this presentation material to learn more how to successfully select a proper IT Outsourcing Model for your business.
Software Outsourcing. Realities and Perspectives: Brief OverviewSoftheme
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.
Trends in Software Outsourcing: Best PracticesSoftheme
Presentation showcasing best practices in software outsourcing: selecting a vendor, applying effective outsourcing strategy, managing risks, signing service level agreements.
Softheme, a Ukrainian software outsourcing company, describes its best software outsourcing practices: software project life cycle, approach to outsourcing, project transition to outsourcing vendor, typical project activities, project quality assurance, and more.
This "IT Outsourcing 101" eBook is a concise summary from the bestselling book on the subject, "Software without Borders" and provides you the essential steps required in initiating and organizing the process to find and evaluate offshore software development options
Salesforce Development and Integration Services for Your BusinessSoftheme
A team of certified Salesforce developers, a deep knowledge of modern software development technologies, an in-depth expertise with the Salesforce platform, critical thinking skills, and a careful analysis of clients' business problems - these are only some of the several things that characterize our approach to Salesforce projects. Review this presentation for a deeper look into our SFDC capabilities. For more information, please visit http://www.softheme.com/salesforce.
There are a lot of events going on in the IT world. This presentation is about most interesting and huge events and exhibitions in software outsourcing.
Why Outsourcing Graphic Design Projects is the Next Big Thing?Rahul Aggarwal
Design Studios, Brand Consultants, Ad Agencies, Printing Firms, Digital Marketers etc. can grow their businesses manyfold by outsourcing their graphic design projects to Designhill, one of the world's largest graphic design marketplace. With over 25,000+ professional designers, Designhill provides a secure, risk-free and affordable solution for such business to source high quality designs.
This presentation outlines the various difficulties, frustrations and challenges faced by creative agencies and highlights how Designhill can help overcome them.
EPC Solutions LLP, which is into Large Scale Infra Projects (Metro, Airports, Stadiums & Other Mega Projects), Energy Solutions (EPC Solutions for Transmission & Distributed System upto 765kV, Contour & Route Survey, Soil Investigating etc.), Solar (EPC), Structure Supply - For Infra, Energy T&D & Solar Segment, MEP Services, SEZ & Other Consultancy Services, BIM Services (Upto LOD 500) & Geographical Information System, IT Services (Web Development, Software Solutions & Manpower Solutions).
Leveraging automation to meet today’s key business needs: agility, speed and ...Precisely
In today’s highly disruptive and competitive market, a company is only as good as its data. The foundation of business strategy and digital innovation, data integrity is vital to achieving operational excellence.
With this in mind, Andrew Hayden, Senior Product Marketing Manager at Precisely, will be hosting a webinar on how to automate critical SAP processes to ensure data integrity, drive digital transformation success and deliver tangible business results.
During this session we will discuss:
• The increasing importance of recognizing the interdependence of processes and the data they create and manage
• The role that automation plays in delivering agility and speed needed to gain a competitive advantage
• How citizen developers are essential to successfully implementing a hyper automation strategy
• What are the advantages to adopting a portfolio approach to automation technology
• The future of automation and how to prepare your IT organization for it
The next big thing in software development outsourcing is a smart move nowJanhavi Ahirwar
Software development outsourcing has thrived on the premise that it leads to significant reduction in operational costs for the same work that has been done in-house since time immemorial. However, global software delivery models are complicated initiatives, with language barriers and cultural nuances adding to the complexities.
Read More https://wp.me/pcO5CM-f
2021 ‧ Digital Economy Blueprint based on the latest research and opportunities for digital transformation during and after the crisis.
⤑ How can a business not depend on changes?
⤑ How can a business successfully make changes?
⤑ How can a business minimize risks?
HfS Webinar Slides: Standard Bank Case Discussion - Improving Customer Experi...HfS Research
This webinar replay shares how Standard Bank transformed its onboarding process by deploying Smart Process Automation. Standard Bank’s insights will enable organizations to clearly make the case for Automation as part of their service delivery strategies.
Learn from practitioners and experts on Smart Process Automation from HfS Research, WorkFusion and Standard Bank as they share their experiences about improving business outcomes through more integrated automation technologies.
Watch this replay and learn:
How did Standard Bank approach the automation of key processes—how did the deployment work and what were the results?
What can you learn from a leading service buyer about the future of Smart Automation?
How do Cognitive Computing and Machine Learning enhance the quality and agility of service delivery?
What is the impact of Smart Automation? What are the main use cases and insights?
Watch the webinar replay: http://www.hfsresearch.com/pointsofview/hfs-webinar-standard-bank-case-discussion-improving-customer-experience-through-rpa-ai-powered
Challenges of IT Outsourcing for CEOs of Small.pdfMindfire LLC
The pandemic has altered every facet of the business, and many companies outsource to adapt to the new normal. Many businesses now want to boost their operations and profits using contemporary technology.
Outsourcing has emerged as the new business paradigm, and major companies are scrambling to take advantage of its cost-saving and growth-promoting potential. It takes time and energy to settle into the adaptation phase when a business begins outsourcing for the first time.
Four Key 'Human' Pitfalls to Keep an Eye on in Digital Transformation.pdfEnterprise Insider
There are some basic human pitfalls to avoid while embarking on a digital transformation project. These stumbling blocks make operations more difficult and, as a result, contribute to an inefficient digital transformation.
It staff augmentation vs delivery teamsKaty Slemon
IT Staff Augmentation Vs Delivery Teams: Know the advantages, disadvantages of both the outsourcing models and decide which one to choose for your company
Managing a professional services firm is hard work. Firm leaders must juggle marketing, business development, client service, staff recruiting, development and retention to a successful outcome for everyone involved. There is one thing that
firm leaders must feel comfortable with that links all of these firm management initiatives together — technology.
How to Turn Raw Data into Product Revenue by Retrofit PMProduct School
Most companies have a goldmine of data, yet lack the ability to know what to do with it. In this talk, Monica shared perspective on how to evaluate data, package it, and turn it in to additional revenue streams.
Main takeaways:
- Identify use cases for data.
- Turn those use cases in to product offerings.
- Create a pricing model & collect revenue.
Key drivers that influence a Tech Startup’s Software Outsourcing DecisionMindfire LLC
For any Startup, challenges are plenty — from developing a robust business plan with the available capital, followed by setting up a software development team that has the necessary expertise, and subsequently marketing it fast and good enough to beat the competition. But if the entire edifice is heavily dependent on software, either as a pillar or an enabler, possessing the right capabilities holds the key to everything else. And if the choice is made to outsource, enough focus and importance have to be then given towards making the right decision.
Why Outsourcing Software Development Still Works?WeblineIndia
Still skeptical about outsourcing software development projects? In this blog, uncover its modern advantages, undeniable impact and why it still works today. Read more https://www.weblineindia.com/blog/why-outsourcing-software-development/
In the realm of the auto transport industry, the quest for leads reigns supreme. Companies constantly seek new avenues to acquire potential clients, and the cost attached to these leads can significantly impact business strategies. Understanding the intricacies of these costs is crucial for any player in this competitive field.
Similar to Software Outsourcing: Why, When, What (20)
If you understand how English is important for you, then there is the next question: HOW can you improve your English skills? Check this presentation to find out the 10 best ways of making your English better.
Check out these 8 reasons why learning English as a second foreign language is so important today, especially for your successful IT career. Don't forget to share your thoughts with us.
Mobile applications demand, mobile devices statistics and mobile development technologies in the presentation of Softheme's mobile application development services. We offer mobile development and QA services for iPhone and iPad, Android, BlackBerry, Symbian, Meego and Bada smartphones and tablets
Training: Effective Business Letter WritingSoftheme
The training’s purpose is to equip participants with knowledge of the main principles and techniques of effective business letter writing. In this entertaining, highly practical course, participants learn how to structure letters for success, produce a more professional document, maximize comprehension, and create a good impression.
In most English-speaking countries, it is normal and necessary to make “small talk” in certain situations. Small talk is a casual form of conversation that “breaks the ice” or fills an awkward silence between people. The ability to make ‘small talk’ is highly valued. In fact, many English students agree that making effective small talk is much more important than knowing correct grammar structures – and rightly so! Small talk gets friendship started and ‘breaks the ice’ before important business meetings and other events.
Software Testing: History, Trends, Perspectives - a Brief OverviewSoftheme
In this presentation you can learn about different types of software testing, new technologies and methodologies. It contains an overview of software testing perspectives.
This presentation is about top IT professional certification programs in the world. Here you can learn about certification centers and programs across different cities of Ukraine.
Software Development: Trends and PerspectivesSoftheme
This presentation overviews the latest trends and perspectives of software development, including Agile Development, Cloud Computing, Software-as-a-Service (SaaS), Service-Oriented-Architecture (SOA), and more.
Softheme is a software outsourcing company based in Kyiv, Ukraine. In this presentation Softheme shares its experience in cutting-edge software outsourcing practices. Learn more about the key factors of project deliverables quality in software outsourcing, moving development offshore and when the main goal of outsourcing engagement - major savings - is achieved, risk management and simple steps to mitigate risks in software outsourcing model, core benefits of software development outsourcing, factors to assess to choose an outsourcing software development vendor, etc.
Softheme: Internet Applications Development ServicesSoftheme
Presentation showcasing Softheme's web development capabilities. Learn more about the types of web solutions we deliver: web applications (saas, social networks, cms-based websites), web testing (multi-browser support, UI usability, user scenarios), graphic content (graphic UI, image processing, 3D), online promotion (internet marketing, SEO, ppt presentations). Main reasons for working with Softheme, how we approach web development projects, our web technologies roaster, types of web projects we delivered.
Dedicated Offshore Development Centers: a popular trend in outsourcingSoftheme
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Guide to Ukraine: helpful information for foreign visitorsSoftheme
Either you come to Ukraine on business or vacation, this presentation will be equally helpful. It contains such information about Ukraine and its capital, Kiev, as political and banking systems, education, holidays, IT outsourcing, visas, foreign embassies, public transport, places where to stay and to eat, sightseeing, and other useful information.
Risks and Responsibilities in Software Outsourcing ProjectsSoftheme
Presentation covering the basics of outsourcing project management and describing the role of properly defined and distributed risks and responsibilities in software outsourcing projects.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
Key Trends Shaping the Future of Infrastructure.pdfCheryl Hung
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Cheryl Hung, ochery.com
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Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
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GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
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Gopinath Rebala
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2. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
Table of Contents
Preface
Historical Background
Why Do Firms Outsource?
When to Outsource?
What to Do and Not Do
Factors that Support Outsourcing
The Risks of Outsourcing
Core Competencies and Critical Success Factors
Outsourcing Trends and Future Projections
3. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
Today’s business environmental, organizational, and technological factors
require businesses to operate efficiently and effectively in order to be competitive.
Toward those goals, managers employ many strategies to improve productivity,
including standardization, automation, and business process reengineering. Additionally,
they restructure the business organizations to be lean and flat so that they can become
flexible in responding quickly to changes in environment and customers’ needs.
Outsourcing is another valuable strategy managers use to achieve the above goals.
Preface
4. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
Historical Background
The predominant supply chain model for several
decades was vertically integrated. Each member of a supply chain
was considered to be part of the same industry. All the ancillary
activities that support the supply chain directly or indirectly were
included.
Steadily, products became complex and the scale of
operations increased and management of entire operations within
one corporation became less feasible. This resulted in the increasingly popular use of
outsourcing and has resulted in vertical disintegration of corporations and supply chains. As
travel and communication became easier in the 1970s and 1980s, as trade restrictions
increased, and as the gap in wages between developed and developing countries increased,
outsourcing began to move off-shore.
5. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
Historical Background
In 2002, for instance, India had 90% of U.S. organizations’ information
technology (IT) off-shore business.
China looms as India’s biggest competitor, although some consider
the two as noncomparable at this time. Other countries considered to
be attractive as off-shore outsourcing sites include Malaysia, the
Czech Republic, Singapore, the Philippines, Brazil, Canada, Chile,
Poland, Hungary, Russia, and Vietnam.
6. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
Historical Background
In the age of the Internet and World Wide Web, a company’s location
hardly matters. In the past, the educated and skilled labor from low-cost countries
immigrated to the U.S. During the last decade, faster communications and
improved information allow companies to easily send information oriented work
to any location on the globe. Ultimately, countries with low-paid but well-educated
workers will benefit greatly. However, the country of origin of the outsourcing also
benefits.
7. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
Why Do Firms Outsource?
Companies outsource functions for reasons that are organizationally
driven, improvement driven, financially driven, revenue driven, or cost driven.
Outsourcing can be viewed as a component of corporate and industry international
expansion and restructuring.
Five horizons of the global industry value chain
Market entry
Product specialization
Value chain disaggregation
Value chain reengineering
New market creation
8. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
Why Do Firms Outsource?
Product specialization
Market entry
Entering a country for purposes of market expansion
Product specialization
Specialization takes place in different locations. Each
location may engage in final goods trade with each other
Value chain disaggregation
Product components are manufactured in a certain location
and assembled elsewhere
Value chain reengineering
Reengineering processes to capture additional advantages
from production cost differentials
New market creation
New market segments are penetrated as a matter of capturing
the full value of the company’s global activities.
9. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
When to Outsource?
Product specialization
Factors that Support Outsourcing
Characteristics of today’s outsourcing environment are many and varied. The
strategic change to outsourcing is highly evident in the software industry. Frequent changes to
software especially often result in an organization turning to outsourcing as a solution. Reasons
studied for this can be generalized to all outsourcing, and include:
The turbulent market will need corporations to be customer
focused
There are pressures on corporations to continuously develop new
product at reduced cost
Extensive customization is enabled by IT through mass
customization
The market need can be fulfilled by flexible and adaptable
organizational structure which is possible with IT-enabled processes
10. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
When to Outsource?
Product specialization
Factors that Support Outsourcing
Previously identified factors include
time compression, short product life cycles,
strategic discontinuity, increase in knowledge
intensity, and customer-focused approach.
These changes are:
11. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
When to Outsource?
Product specialization
Factors that Support Outsourcing
Customer focus
Shrinkage in product/systems life cycle
Competition and real-time operations
Societal, political, and ethical factors3
4
1
2
Global economy
Changing workforce and job loss
Technological innovations and obsolescence
Organization structure and corporate culture
5
6
7
8
12. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
What to Outsource?
Product specialization
The Risks of Outsourcing
Despite the purported benefits of outsourcing and the wide
range of success stories that have stimulated an unprecedented growth
rate, there are potential risks as well. An outsourcing project might fail
because of poor selection of the vendor, mismanagement of the
outsourcing contract, inferior performance by the vendor, lack of
acceptance by the end consumer, or other reasons
Selection of the Vendor
Mismanagement of the Outsourcing Contract
Inferior Performance by the Vendor
Lack of Acceptance by the End Consumer
13. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
What to Do and Not Do?
Product specialization
Core Competencies and Critical Success Factors
Decisions as to what and whether to outsource should be tied to an
identification and understanding of an organization’s core competencies and
its critical success factors. Such an identification and understanding can be a
lengthy process. However, it is the one true way to determine whether a
project should be or should not be outsourced.
14. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
What to Do and Not Do?
Product specialization
Core Competencies and Critical Success Factors
If a task is a both a core competency and a
critical success factor, it should not be
considered for outsourcing. Such tasks are at
the heart of the company.
Tasks that are core competencies but not
critical success factors should be reassessed.
Those tasks which are not core competencies
are the most likely candidates for outsourcing.
If an organization intends to bring an
outsourced task back in-house a some future
time, managers should be cautious. Once the
expertise has been released to the outsourcer,
it is difficult — if not impossible — to regain
such expertise in-house.
15. www.softheme.com Outsourcing to Softheme™ Software Outsourcing: Why, When, What
What to Do and Not Do?
Product specialization
Outsourcing Trends and Future Projections
Outsourcing of information technology functions
Outsourcing of pharmaceutical functions
Outsourcing of customer care functions
Outsourcing finance and accounting (F&A) functions
Outsourcing of human resource (HR) functions
Outsourcing of research and development (R&D) functions
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Product specialization
Outsourcing Trends and Future Projections
Outsourcing of information technology
functions is a huge marketplace. IT outsourcing
began as a cost-reduction tool, but has evolved into
a component of businesses’ overall corporate
strategies. It has grown from simple applications to a
much wider set of business functions: logistics,
payroll, human resources, legal, and so forth. It has
become pervasive and strategic.
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Product specialization
Outsourcing Trends and Future Projections
“Back-sourcing”
IT off-shoring
Web-based and
e-business
outsourcing
partnerships
Application
service provider
(ASP) industry
Growth Areas
in
IT Outsourcing
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Outsourcing Trends and Future Projections
Outsourcing of pharmaceutical functions traditionally has taken the form of
outsourcing drug development and manufacturing to contract research organizations
(CROs) and contract manufacturing organizations (CMOs).
Outsourcing of customer care functions by moving entire contact centers
off-shore has become very popular. The functions performed by customer service
centers are more important than their location. The discrepancy between labor, real
estate and infrastructure costs on-shore vs. off-shore, makes this a logical function to
outsource. Customer contact centers are a $650 billion industry (Cleveland, 2003).
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Product specialization
Outsourcing Trends and Future Projections
Outsourcing of human resource (HR) functions, such as
payroll, recruitment, hiring, training, benefits management, employee
assistance programs, executive compensation, as well as health, safety,
and regulatory compliance, is gaining momentum.
Outsourcing finance and accounting (F&A) functions have
been prevalent since the beginning of business. Now, there is a growing
trend for F&A functions to be outsourced off-shore, primarily to save
labor costs.
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Product specialization
Outsourcing Trends and Future Projections
Outsourcing of research and development (R&D) functions takes
various forms. Drug companies contract with outside firms to explore new
compounds for possible testing and launching. A different form of R&D
outsourcing is used by companies such as Dell, Motorola, and Philips which buy
complete design of digital devices from Asian developers, tweak them to their own
specifications, and attach their own brand names. Another approach is that used
by Boeing Co. which contracts with India’s HCL Technologies to co-develop
software for everything from the navigation systems and landing gear to the
cockpit controls for its upcoming 7E7 Dreamliner jet.