Understanding Global Software Outsourcing

What is outsourcing?

Outsourcing is a process by which any work is outsourced to a third party company in order to reduce labor costs, and to improve the quality of work. Outsourcing is done generally by companies based in countries where the operating costs and labor is costly like the United States and the United Kingdom, these companies in order to save the labor costs outsource the work to companies based in technologically developing and English speaking regions like India, Ireland, Mexico and China

The process of outsourcing is just like division of labor and it is of the following types:

  1. Regional Outsourcing
  2. Global Outsourcing.

Regional Outsourcing is a form of outsourcing in which work is outsourced to a region within the regional framework of the companies based in that country. For example a US firm based in New York outsourcing work to another firm based in Texas.

Global Outsourcing is a form of outsourcing in which the work is outsourced to a region which is out of the regional framework of the company outsourcing the project. Find more info on learning management systems at www.eleapsoftware.com .

For example a firm based in the United States outsourcing projects to an outsourcing firm based in India.

When Global Outsourcing is applied to the Software domain then the whole process is known as Global Software Outsourcing. Most of the Silicon Valley based companies follow Global Software Outsourcing since labor is expensive in the US and talent management is difficult. The employees of the firm do not wish to work overtime and do not take additional workload, this is the reason why the software projects are outsourced to knowledge based technologically developing economies like India and China, where the work is done much cheaper and the quality of the products is very high, since the people of these countries are intelligent, highly professional, work according to the global standards, and also take very little salaries in comparison to their counterparts in the United States.

This is the reason why Global Software Outsourcing has resulted in the development of these Information Technology hubs using project management software like Wrike, and now India boasts of having the highest amount of skilled and highly qualified software and IT professionals like nowhere in the world. The reason for the success of the Global Software Outsourcing business in India and the Indian professionals lies in their excellent English language as well as Technical Skills and also their professionalism. The Indian companies are specialized in Operating systems and programming skills. This leads to their extra edge in the outsourcing business.