Offshoring and outsourcing are the terms often misinterpreted
to have the same meaning. But there is a slight demarcation
between the two – The shifting of production,
manufacturing or services to another country that
offers better competitive advantages such as lower
costs and fewer regulations is called Offshoring.
The complete transfer of business is involved in Offshoring
where the head office is present at the onshore region,
but the offshore base is the production and development
site. Outsourcing on the other hand is the transfer
of only a part of the business process to a cost-
effective and efficient site.
The core process is performed by the mother company
whereas the non-core jobs are done by the service
provider on the other side of the globe. Business
Services are sorted into components and each component
is dealt with efficient and cost-effective measures.
The practice of outsourcing was prevalent from the
80’s, but the quest for cost-effective and quality
work increased offshore software outsourcing in the
21st century. The boom in IT enabled services and
the influx of MNC’s spreading their web for
outsourcing business processes from Banglore, Gurgaon,
Chandigarh etc, have added impetus to offshore software
development. Software development has come a long
way via offshore outsourcing. Business giants like
Infosys and Wipro are the forerunners in offshore
software outsourcing. Software development companies
outsource services from companies outside their region.
Outsourcing any business service, production or manufacturing
from an offshore company is known as Offshore Outsourcing
and offshore software development is a part of the
same frame. Professionals in India offer expertise
in software development, custom software development,
web application development, web programming, application
development, business process outsourcing, content
management etc.
The Indian service providing market is a huge cauldron
with prime factors such as cheap labour, cost- effective
production, quality work and a population that can
understand and converse in English attracting more
American business groups seeking trust in Indian talent
and excellence. These are not the only factors that
make India a golden bird in offshore outsourcing.
The dual effect of technical brilliance and the advent
of information technology suffice the requirements
for outsourcing software development from India. The
time zone creates differences in the working hours
of both America and India, but this has proven to
be a boon as the working process continues round the
clock. The offshore companies that have their base
established in India generate revenue more than what
they would generate if they had used their own task
force for developing software. Apart from the above
mentioned qualities, Offshore Software Development
in India has also supplied with more and more job-opportunities,
thereby solving unemployment crisis. Countries like
America and UK feel secure in outsourcing services
from India as they tap the Indian talent and brilliance
at a far cheaper rate. But, a question may arise as
to whether there is frequent communication between
the offshore and onshore base?
Indian offshore software companies maintain their
communication with the onshore base regularly for
development and maintenance of software. Before the
software is brought on floor, the production site
sits with the onshore base for a healthy business
discussion either by a face to face interaction or
through voice support, mail or chat. Also, the development
is executed on the basis of a process model prescribed
in accordance with the onshore style of working. India
has in all such contexts proven to be the best option
for offshore outsourcing of software development.
