software outsourcing

A blog related to software development company and offshore software outsourcing

Sunday, October 09, 2005

Software Outsourcing and Benefits

In a recent survey by DiamondCluster International, there is a high increase in the premature termination of the offshore outsourcing software development contracts. Number of satisfied buyers have decreased from 79% to 62%. According to Tom Weakland, it is not right to blame only offshore software development service provider. Although, many buyers are outsourcing their software development work, they still lack quality to get maximum benefits of outsourcing.
This was the third annual study by DiamondCluster and first of its kind where buyers mentioned they are planning to reduce their software outsourcing.

Software outsourcing benefits

To consider the biggest benefit of software outsourcing, companies mentioned reallocation of internal resources to more critical functions. Also, cost saving was another primary reason but it was second in consideration.
Report also mentioned that, companies are learning that, there is no tremendous cost savings. As attrition rate is high in countries like India, companies are also learning cost of losing good people and cost of losing people with specific knowledge.
Stellar Tech - Software outsourcing and offshore software development company from India with satisfied clients in US, UK, Italy, Belgium, France, Sweeden and Spain.
Thursday, October 06, 2005

Outsourcing trend

Above 53% of the silicon valley software companies are doing software outsourcing. According to the survey above 50% of the total outsourcing jobs are going to India according to survey performed by Santa Clara University. India has work force which is well educated and speak English. So it becomes an ideal place for software outsourcing. Although, India is the leader in offshore software development, other countries like China, Russia and Philippines are also emerging along with some east European countries. China has captured 8% of the outsourcing while other Asian nations got 11%.
Although outsourcing has become flavor of business today, sectors like manufacturing are decreasing. 39% of the manufacturing companies mentioned that they outsourced their manufacturing operation during the last 3 months which is down from 48% two years back. Major drops are in semiconductor and electronics business. It is expected that this trend will increase in manufacturing jobs.
Stellar Tech - software outsourcing India
Our services include offshore software development and offshore outsourcing in different Microsoft technologies.