Today, businesses irrespective of their size and location are adopting Offshore Outsourcing to gain cost benefits and deliver quality services to their customers. But what exactly the Offshore Outsourcing is and why businesses are implementing it?? Let's find out.

What is Offshore Outsourcing? - An Eye Opener

Offshore Outsourcing is the modern business approach of outsourcing / assigning some of its commercial activities to expert offshore companies in order to fetch better quality, cost and technical excellence than what is available domestically.

"Hire rather than own expertise" is the concept behind Offshore Outsourcing. Rather than spending money on developing and maintaining certain non-core activities, businesses can outsource them to offshore experts and get quality work at much lower price.

Gartner, one of the world's largest research and analysis organization, has predicted that total global offshore spending on outsourcing IT Services will reach $50 billion by 2007. The report has also mentioned that emerging countries like India, China, Brazil and Russia possess required capabilities in terms of labour, technology and infrastructure to undertake IT related outsourcing activities successfully.

Benefits of Offshore Outsourcing

Offshore Outsourcing offers businesses multiple benefits in terms of Cost, Quality and Technical Excellence. Here are some of the noticeable benefits of Offshore Outsourcing:

• Realistic cost savings of about 40% as compared to onshore or domestic markets. (Source - Ventoro Research Report)
• Quality Product Delivery by offshore companies using their expertise, extensive domain knowledge and implementation of Matured Execution Models in their processes. (Source: NASSCOM)
• Technical Excellence offered to clients by capitalizing on quality Human Resource, robust infrastructure and domain related Research and Development (R &D).
• Maximum time benefit by leveraging the time difference between service provider and service requester.
• Reduced project cycle by implementing globally recognized Project Management systems in their operational activities.
• Operational Flexibility by quickly adapting to changes in business requirements.
• Better finance management through clearly defined financial obligation and reduced cost.
• Improved competitiveness since offshore companies deliver quality services at affordable rates.
• Renewed focus on company strategic plans by outsourcing certain non-core business operations to offshore companies.
• Exposure to new markets by making alliances with offshore companies and taking business to unexplored areas.

How Offshore Outsourcing Works? - Implementation

As mentioned above, Offshore Outsourcing is based on "Hire rather than own expertise" concept. In other words, businesses prefer to outsource/transfer their non-core activities to offshore companies who are experts in their working domains.

By doing this, businesses get expert services at low cost as compared to the domestic market. Besides, businesses also get more time to concentrate on their growth plans that they might have spent in maintaining these activities.

India Advantages

It won't look surprising if we call India as "Mecca of Offshore and Outsourcing". According to a study conducted by Forrester in November, 2001, India's edge over other competing nations in the IT outsourcing business is based on the country's decade old experience in this area, fluency in the English language, supportive Government policy, infrastructure, and high quality offerings. (Source: NASSCOM)

Below, we present you some reasons that justify why India is a preferred destination for businesses to outsource their offshore-based activities: -

• Large Human Resource with approximately 17 Million people available in IT industry by 2008. (Source: NASSCOM)
• Maximum Cost Advantage. An independent report estimated that for every $1 invested in India via Offshoring, the American Economy gained $1.14 in direct and indirect benefits. (Source: NASSCOM)
• Incorporation of Quality Standards like globally recognized SEI-CMM, P-CMM Levels and ISO 9000 Certification by Indian IT companies to ensure quality services for their customers. As on 31 st March 2002, India had 42 companies at SEI CMM Level 5 assessment and 316 companies who have already acquired quality certifications worldwide.
• Friendly Government Policies towards Offshore Outsourcing by offering various tax benefits and sops for IT and ITES industry.
• Address security concerns by introducing IT Act, 2000 that legalizes laws and policies related to data security and data crimes.
• Quality Manpower with strong technical skills, good language command and eagerness to accommodate Clients
• Strong Education System that emphasizes on mathematics and science along with English language proficiency.
• Decade old Experience in Offshore and Outsourcing justifies why India is considered the best in this business.

Outsourcing FAQ:

• What kinds of projects are usually outsourced to WEB DESIGN SOLUTIONS INC.?
  • We have worked with various customers who have outsourced projects ranging from documentation to post rollout maintenance including
    • Technology feasibility studies / Prototyping
    • Requirements capture, design and documentation
    • Project Implementation
    • Productization (full product from concept to roll out)
    • Maintenance
    • Enhancements
    • Testing & Quality Control / Analysis
• Does outsourcing mean losing control over the entire project?
  • web Design Solutions takes over the responsibility of completing the project with a specified requirement set, budget and schedule defined in the contract. But that does not mean that the customer loses all control and visibility on the project.
    
    There are key phases in a project where customer involvement is mandatory such as requirement finalization / changes, project planning, reviews of work products (optional), acceptance testing, and schedule.
    
    To ensure visibility periodic status reports are sent and status / milestone meetings held. The customer is also free to audit the development process at WEB DESIGN SOLUTIONS INC. at any point of implementation to ensure that the contractual terms are followed.
    
    web Design Solutions will also sign a Non-Disclosure Agreement (NDA), to protect your intellectual property and maintain confidential information. This is normally part of the project development contract.
• How can I save money by outsourcing my work to WEB DESIGN SOLUTIONS INC.?
  • Savings are dependent on various factors such as:
    • Type of work
    • Volume and duration of work
    • Technologies involved
    • Whether you contract us directly or through a third party
    Over all, the cost of getting your software developed by WEB DESIGN SOLUTIONS INC. will be cheaper by 30 - 50% even after including your overheads. This is an indicative figure and does not apply equally to all cases.
• Can I be sure that the charges are fair and the project is being done properly?
  • Customers are welcome to be involved in every stage of the project implementation. In fact we positively insist that you get involved. The following is our process to ensure transparency and visibility:
    • Project Plan & Schedule given at the start
    • Under normal circumstances, any changes are possible only with your approval
    • Project Status Reporting on a weekly basis
    • Major activities during the week
    • Reasons for deviations if any
    • Planned activities for the next week
    • Issues (if any)
    • Proposed changes in commitments (if any)
    • Anticipated risks
    • Online Monitoring
    Our customer can review all the work products and track the project progress, risk, quality and cost. For large products or in special cases we provide our customer an onsite coordinator for daily and closer interaction (charged at actuals).
• Who are your main customers?
  • WEB DESIGN SOLUTIONS INC. has customers from around the globe operating in different verticals like Automation, Security, Consumer Electronics, Life Science, Automotive, Networking and enterprise solutions. In case you are interested in knowing more about specific domains and customers, please mail us at mail@webdesignoutsource.net
• What is the language of communication with your team members?
  • We speak and write English fluently. We also have engineers on our team who are fluent in Japanese, German and French.
• Do you have any experience with complex software projects?
  • Yes, we have developed business critical software solutions that with hundreds of thousands of lines of code, hundreds of man-years, and team sizes ranging up to 50.
• How can you prove that your software is of high quality and reliability?
  • Quality is the prime objective of our workflow. We implement Software Quality Assurance (SQA) processes that addresses the quality assurance needs at every phase of the development cycle. This ensures that every solution that we deliver matches customer expectations. In addition, & evaluated at CMM-Level 5 & CMMI-Level 5
    
    The Quality team tracks that the project and ensures that it conforms to specified / expected processes, procedures, and standards.
• Can you provide me an initial technical proposal?
  • WEB DESIGN SOLUTIONS INC. will provide you a technical proposal specific to your project based on initially available documentation.
• Can we have long-term cooperation?
  • Yes. We are open to long-term contracts / relationships. In fact, it is the preferred mode of working with our larger customers. WEB DESIGN SOLUTIONS INC. operates exclusive development centers with dedicated staff and infrastructure for many organizations. We have a customer retention rate approaching 90%.
• How big is your team?
  • WEB DESIGN SOLUTIONS INC. employs 25+ software engineers at its development facilities in India. In addition. The engineers are experienced in multi-cultural, multi-lingual work environments.
• Can you continue doing my project from any stage?
  • Yes, we do undertake projects from any stage, though we prefer involvement starting at an early stage.
• How do you monitor the time spent on a project?
  • The project schedule and plan is submitted for your review up front. Details of deployment and effort will be included in our weekly status reports. In turnkey projects that we usually execute, the customer need not worry about the effort deployed since he / she needs to pay only the original contracted amount.
• Do I need supply project managers?
  • All our projects include project management. We have a staff of senior project managers with wide ranging experience who are capable of handling complex projects. Many of them are MBAs / PMPs.

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