Why Offshore

Experts like the Gartner Group and Forrest Group have projected that nearly half of Fortune 1000 global enterprises will derive business benefits from shared IT utility infrastructures that are owned and operated by service provider hybrids. Speed and agility are essential in a world of constant change. Companies that identify and recognize the changing trends, key drivers and factors for optimal sourcing strategies like not only seek local vendors but offshore partner as well.

The fastest way to respond to competitive threats, restricting budgets and immediate need for technical headcount for pressing business goals, is to look offshore for support. CIO’s and CFO’s find that they can achieve both high quality products and speed of delivery for their organizations with the offshore model.

According to Gartner, by year-end 2004:

• More than 80 percent of executive boardrooms in the United States will have discussed offshore outsourcing, and more than 40 percent of U.S. enterprises will have tried a pilot program or actual outsourcing either offshore or near shore.
• Eight out of 10 CIO’s will have direct marching orders to move offshore at least part of the technology services they provide to their businesses. Four out of 10 companies will already have done so.
• Traditional methods to local outsourcing may have many benefits, but cost savings is usually not one of them. The most cost effective method for application development is to seek global solutions with lowest rate structure to meet your specific business needs.Once the outsourcing decision has been made, the next piece of puzzle is the delivery model. As the global economy emerges, companies are vying for global resources, to meet their business goals. One of the popular delivery models now being considered is offshore outsourcing.

Corporate and IT decision makers have agreed there are key benefits that make offshore outsourcing extremely attractive as a strategy. Some of the benefits include:

• Scalability of resources
• Access to cost effective world class technical pool
• Cost Effective Infrastructure
• Faster time to Market because of the time zone differences and the round the clock working times
• Enable R&D efforts with less risk
• System migration to latest technologies without disturbing the current business