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Articlesbase.com, Dec 18, 2007
http://www.articlesbase.com/software-articles/offshore-software-development-the-best-way-to-cut-down-on-expenses-284851.html

Offshore Software Development - the Best Way to Cut Down on Expenses!

By John Wircken

Offshore software development is a kind of outsourcing in which work related to software development is transferred to an offsite location. Offshore Software Development has become very popular with more and more companies looking to save money and increase their international business prospects. As the latest and most prevalent trend in the IT industry, offshore software development is the best that a company can do to cut down on its expenses and at the same time make no compromise on quality.

By engaging in offshore software development, a company can minimize its production costs to a great extent. Companies that utilize offshore development can lower their annual outgoing expenses due to lower salary bills and lower expenditure. They will also save money spent on taxes. Many companies in developing countries do offshore development for large-scale companies in the developed countries. For instance, there are many offshore software development companies in countries like India. Such companies provide qualitative and affordable solutions to companies on demand.

Offshore software development has many advantages and disadvantages. Normally brand new companies are unable to understand the process of offshore outsourcing. They fail to perform up to the expectations of clients and fail due to these reasons. This is the main drawback of offshore software development. But many advanced and experienced companies perform well and deliver high quality outputs. Since offshore development means reduced expenditure, many developed countries choose developing companies for their offshore development purposes.

Countries like India and China are perfect for offshore developmental purposes. India is a densely populated country which has many skilled software professionals. This is the main reason why US companies select India for offshoring their work. Through this the companies save a lot of money. But there may certain barriers in countries like India also. Offshoring requires transferring important work to a place other than your workplace. In such a case, deputation of work is involved. For proper deputation of work, communication is very crucial. Language plays a vital role here. Hence is it always better to choose a country which has English as a second language.

There are also certain risks associated with offshore software development. Stability of the offshore countries is a major area of concern. Before offshore outsourcing, companies must ensure that their offshore software development companies have business continuity and disaster recovery plans. Otherwise the offshore company must prepare for the non-availability of their outsourcing partners anytime as most of the offshore countries are prone to terrorists attacks or similar other risks.

There are few tips to be successful at offshore software development. When selecting an offshore software development company, make sure that the company has extensive experience working on complex projects. Many software development companies will have a wide number of specialists. They may not be on the company payroll, but the company may depend upon such professionals for completing the most critical tasks on time and within the budget. In such a situation, if those professionals fail to perform well, the quality of work may be affected. The offshore software development company that you choose should adhere to high standards and should be able to perform custom software development for any type of business. If you choose a company considering all these factors, you will receive an excellent return on investment.

An ideal offshore software company will usually be enriched with huge resources, so that it can carry out custom software development processes effectively without any hassles. offshore software development has become a successful business strategy. It offers huge benefits to companies to improve their finances and resources. With great competition in the IT industry, it is the best way to make the most of a business venture. Offshore companies develop high quality software at the lowest possible prices.

The benefits of offshore software development are immense. Offshore development has extended beyond software development now. It is practised in areas like content management, web application development; outsource help desk support with consulting and global staffing.

 
 
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