To start with let me tell you Offshore development is a kind of outsourcing. Soon after knowing this a question arises why outsource. There's an answer. But before I get into that let me tell now a days majority in the market, don't ask 'Why Outsource' but instead all are now asking 'Why not outsource'. I think that statement itself is self-explanatory. The market today very well knows that outsourcing works great for both big and small businesses alike. Outsourcing has turned out to be a tried-and-tested model as of now. It is now recognized as a long term competitive strategy for success and profits.
Alright! Now that we know about outsourcing, let's get into offshore development. For all those who are new to this topic, offshore development is development of a software project in some foreign country. Basically the center where offshore development happens is called an offshore development center-ODC. As Wikipedia quotes it 'Offshore development center (ODC) is one of the business models by which a provision of offshore programming is undertaken.'
Now, since we know what's outsourcing and what an ODC is, let's get to the topic which is benefits of an ODC.
1. Reduced costs /Cost effectiveness - Salaries of IT professionals are significantly lower than those in the west, so one can take full advantage of low labor cost.
2. Access to various skilled resources- One can have access to the best possible technology and skilled manpower. One gets direct access to skilled diversified set of professionals.
3. Leverage strong project expertise and Best Practices- Offshore outsourcing companies are focused heavily on innovation, quality and continuous improvement. Thus one can get strong expertise with highly experienced team of experienced professionals.
4. Avoid wastage of time on errors and bugs- Offshore development centers operate at high levels of efficiency, and reliability. One gets access to quality processes operating at the highest possible software development quality. This ensures minimum error rate and rework.
5. Faster Project Start-One can leverage the ready infrastructure provided by any (ODC) to start its projects. This considerably, shortens project start-up time span.
6. Shortened Development Cycles-As work allocation happens at a differ location and task accomplishment happens at different location, the time ideally taken for development reduces considerably.
7. Minimization of Risk- Involvement of many skilled professionals and teams greatly reduces the risk of project failures. This provides significant advantage when managing service level agreements
8. No extra expenditure - No extra or new infrastructure needed to complete projects.
9. Satisfying results - One can get high quality work from the skilled offshore team, without much training.
Other benefits include virtual expansion of your team and accelerating time-to-market for products.
Offshoring projects is ideal for today's organizations, who are finding ways to cut costs and obtain higher productivity from skilled resources. Offshore outsourcing helps companies meet these objectives easily at lower costs in half the time.
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