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Is It Worth To Outsource? How One Can Outsource Wisely
Recent trends in software development market show that it is no longer the most efficient way to work onshore. Competition is too high and in some particular cases, US or European IT people even go farming rather than admit the situation and adapt themselves. This article is mainly for those who are going to stay straight in the industry whatever surprises it keeps bringing. International division of labour has done its work. So nowadays, if you ask anybody about the regions he associates with IT-industry, you'll get quite a short list: India, China, Russia, Eastern Europe. No wonder, historically these regions had the most efficient technically oriented education. In addition to lower cost of labour in the East, that is their main selling point, which determines their competitive strength. As a logical sequence, almost each leading company engaged in IT sphere, whether publicly or secretly, outsources a part of its current work to third parties, often offshore. No wonder that Indian and other offshore software development companies prosper. So what are the key factors that make companies outsource? 1.Cost of labour is often several times less than onshore. 2.There is no need to maintain the whole technical infrastructure 3.Company can concentrate mainly on marketing tasks Although that sounds good and promises several times bigger profits, incautious outsourcing can be a trap for any company. Don't forget that you entrust your reputation to a company that is thousands miles away. Hence, if you have made a decision to outsource a part or the whole project to some company, you should take into consideration five simple tips. Make proper research Consult alliances and associations Communicate carefully Ask for references/samples Phone or visit them If you can do at least three of these five steps, there will be little chances for you to be cheated by an unreliable company thousands miles away. You'll be able to experience that kind of wise outsourcing that can give you required competitive ability. Each time you are going to give some project for offshore development, take into account that you should be an initiator and wise decisions maker. Research, consult, and communicate. That's the motto of any company that is successful in outsourcing. It's not too complicated, is it? Alex Polonski is a Senior Sales Manager in XITEX Software Company, Ukraine. The company works in offshore software development market since 1999 having fair expertise in J2EE and .NET technologies. Among company's own-developed and marketed solutions, one can see a J2EE content management system, Xitex WebContent M1.
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