Wednesday, September 3, 2008

Outsourcing Application Development

Despite the ever dwindling exchange rates, outsourcing of application development is still a viable option for companies in the western world. In fact many years of outsourcing has resulted in the development of key competencies in nations such as India and China, which have been the hub of most of the outsourcing activity in the past decade. These competencies ensure the smooth functioning of outsourcing relationships as well as handsome returns.

Let’s try to understand what are the reasons for making the outsourcing of application development such a viable option.

Cost Savings: The falling exchange rates have had little effect. There are still substantial cost savings possible through outsourcing arrangements. In fact, over the years, the rapid increase in the number of vendors has made the industry highly competitive resulting in greater benefit for the outsourcing companies.

Abundant Resources: Countries like India have very high levels of technical education and produce millions of quality technical professionals every year. These professionals prove to be an invaluable resource in providing the essential element of quality to the outsourcing business.

Operational Synergy: Over the past few years, even Asian countries have immensely built upon their pools of competencies. As a result, they are now able to offer far better levels of operational synergies as compared to earlier times.

Improved Infrastructure: An outsourcing arrangement is highly dependent upon the appropriate communication infrastructure. The rapid development of fibre optics and satellite based communication has allowed for seamless operation of outsourcing activities.

Better Quality: Studies indicate that well managed outsourcing arrangements help organisations increase their product and service quality. The main reason for this being that once the routine processes are outsourced, organisations are in a better position to focus on core business activities.

Process Improvements: The continuous communication between the vendor and the outsourcing company provides a rich platform for skill enhancements and information transfer. The dynamic interchange of knowledge allow for unprecedented benefits in process improvements and building of mutual competencies.

The message is clear. If you have yet not experienced the benefits of outsourcing your application development work, the time is now!

Author :- Jack Albert is a dedicated writer writes for NetProphets Cyberworks, which is develop CRM Applications also one of best web designing company in India.

1 comment:

Damodar Sharma said...

Nice posting about application development...

Thanks Dhanjit..