Software outsourcing, offshore software development

   

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Software outsourcing

  • Outsourcing view

    Outsourcing is one of the key trends of the global IT-market development. Actually, the term "IT-outsourcing" implies a wide range of services, but the term itself came into use several years ago in particular due to the development of computer software. Here in its turn two main components can be distinguished: outsourcing inside the country and transferring of services abroad. The latter case refers right to offshore outsourcing.

    The leading consumers of offshore services are the USA and, to a lesser degree, countries of Western Europe. The surge on this market at the end of the 90-s of the past century was triggered by many factors, and above all, by the natural process of globalization. However, a significant role can be attributed to the nowadays forgotten but sensational at that time Problem 2000, characterized by the sharply increased demand for programming services, rather routine at that. One more important factor was the economic crises at the beginning of this century, forcing western clients to reduce expenditures on IT and to seek cheaper ways of settling their current matters.

    Over 2 ml contracts of Americans in employment (i.e. their recruitment, dismissal, salary payment, skill improvement) are managed by specialized companies on labour resources management. According to some estimations this kind of business is experiencing a 30 % grow in the USA and is providing an opportunity for clients to save up to 30 % of expenses on maintaining human resources department. The global market of specialists outsourcing is predicted by different sources to grow up to 11 bl by the year 2005. It makes it possible for companies to reduce their expenses on staff management by 10-20 %.






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