They say that they've invented a way how to save US economy from loosing money in outsourcing schemes. Is it really so? Time will show this!!!
I've decided to write here some reasons to Onshore Model of software development:
The Homeland Onshore Model (HOM) allows participating firms to take advantage of highly trained and experienced U.S. labor pools utilizing lower cost jurisdictions throughout the United States via high-speed telecommunications vehicles.
On the supply side, our research indicates that, in many cases, U.S. based resources can be delivered to the client for "out the door" costs that are 25% to 40% less than current employees total cost (salary + burden).
Savings are realized by the elimination of all employee overhead and burden. Infrastructure and real estate costs are transferred to the knowledge worker.
In addition to the advantages listed above, language, time zone and cultural issues are greatly reduced or eliminated all together. Managers maintain control of their projects and resources, and service levels can be more tightly controlled.
In short, firms can still realize the benefits of the Global Delivery Model while significantly reducing hidden costs and mitigating risk. We believe that decision makers in most organizations will realize that as long as the work is being done well, it does not matter where the workers are that do it.
Saturday, September 29, 2007
Thursday, September 13, 2007
IDC states that China can become an outsourcing center of Asia
Is India’s software services industry light years ahead of China? Or are the Indians about to lose their lead to the up-and-coming Chinese? Over the past few days, two very different answers. According to a new report from IDC, the Indians have reason to worry. The research firm, headquartered in suburban Boston, has announced that its analysts have come up with a new “Global Delivery Index” that, according to an IDC statement, “compares 35 cities in the Asia/Pacific as potential offshore delivery centers, based on a comprehensive set of criteria such as cost of labor, cost of rent, language skills and turnover rate.” This new index puts Bangalore No. 1, with Mumbai No. 3 and Delhi No. 4. (The only non-Indian city among the top four is Manila, at No. 2) But “Chinese cities are on the rise and closely nipping at India's heels,” IDC adds. “IDC forecasts that Chinese cities will overtake Indian cities by 2011 due to massive investments made ( e.g. infrastructure, English language, Internet connections, technical skills, etc) which are favorable towards offshoring.”
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