A case study of offshore subcontracting

In offshore outsourcing, an external organization from a foreign country is contracted to do a project simply because offshore software development companies charge less costs compared to in-house consulting without compromising quality or time management . Let’s look at the case study of this topic.

Reasons for the boom in offshore outsourcing

1. Globalization
2. Competition in the IT and ITES industry
3. Cost reduction and revenue potential
4. Need for highly skilled and dedicated developers
5. Need for international standard experts
6. Need for an organization to perform subsidiary tasks
7. Offshore Software Entrepreneurship Success Stories

Risk factors in offshore software development

1. Exposure of Trade Secrets
2. Staff proximity deficiency
3. Difficulty monitoring remote management
4. Communication and cultural barriers
5. Increased labor costs

Solutions to problems in OSD

1. Educate and train workers in improving communication and cultural difference.
2. Hire experienced and well-qualified offshore consultancy
3. Analyze the infrastructure, communication lines, Internet, electricity and management in general
4. Scans through protection law, management documentation, and government policies
5. Compare labor cost advantages and proximity to offshore destinations

Today, outsourcing abroad is an inescapable business management among contemporary competitors. Year after year the growth and average income of this business have been successful. India, Ireland, Canada, Russia, the Philippines and a few more countries have seen remarkable gains in offshore software development that have almost led to revolution in the economic policies and employment opportunities of the respective countries.