IT Outsourcing: The Reasons

 

Facing increased competition, escalating pressure to reduce IT costs, and the need to deliver quality projects on tighter timelines, most of the organizations are realising that contracting to offshore applications development firms or establishing an offshore development center is inevitable.

 

The trend toward globally sourced development is poised to continue, especially considering its potential cost benefits as a complement to existing development teams and its ability to maximize onshore and offshore developer productivity. However, there are many potential pitfalls. Lack of IT governance, communication lags and productivity losses due to time, distance, cultural differences, and difficulties in sharing software assets can hinder achievement of overall project goals.

 

To realise the full potential of offshore initiatives, Organizations must carefully reconsider its development processes, as well as the infrastructure used to develop and manage projects. In addition we must also align with overall business objectives with offshore development strategies and implement governance to ensure measurable project success.