Outsourcing Software services

by | Nov 19, 2011 | Software

Globally rising prices have forced companies round the globe to outsource operations, may it be the Finance, the HR or the Accounts department . With advancement of technology, major software companies are facing stiff competition from each other. To move ahead in the rat race, most companies are looking for options to minimise the expenses fron production, advertisement and services segments. The motto of ‘producing the maximum with minimum’ is what every company is following. But, this affects the after sale services that comes with software products. Software services do pinch the budget expenses, so to deal with it, companies today are outsourcing such services to other countries.

The major reason for offshore software services is that the cost involved in setting up a back office for such services is comparatively cheaper than set up in their own backyard. Most offshore services are provided to developing countries with Asia taking a major pie. Asian nations particularly India, Bangladesh, Malaysia are the major countries providing outsourcing services. These nations have good proportion of computer graduates passing out every year. English speaking population in large numbers adds to the advantages these countries offer for offshore services. And the most important factor involved is that the workforce in such nations are readily available at comparatively cheaper cost than paying for the stafff in their own nations.

After outsurcing software services, the cost involved has gone down significantly and relative growth is visible in the profit section. Another advantage that outsourcing offers is that round the clock services are available because outsourcing is mostly done in eastern part of the world which caters to the need of the western region. So, even if a person calls up in night from west, it is still morning in the other part and so no trouble for either party.

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