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Outsourcing industry: The present and future
According to the studies, about 60 per cent of outsourcing projects fail to achieve the desired results, while about 75 per cent of the deals are cut short by the buyers themselves. Still several IT companies across Us continue to outsource work
WHILE RESEARCH reports suggest that many outsourcing projects have ended up as failures, IT companies continue to feel the pressure to outsource product engineering tasks to offshore software development centers. According to the studies, about 60 per cent of projects fail to achieve the desired results of the client, while about 75 per cent of the deals are cut short by the buyers themselves.

Though many engagements fall short, there are various avoidable reasons for it. Many have succeeded in outsourcing product engineering services while some have even built up offshore centers.

Analysts say that it is necessary for client companies to venture out and get references for offshoring partners. Some of them look for quality rather than cost cutting and hence their entire project is budgeted. Some companies want an extended part of their team which can suggest lucrative techniques and recommendations about content and coding techniques as well.

Though the common belief is that most outsourcing providers are looking for cost-cutting, their success is not based upon that entirely. Though 70 per cent of the client companies outsource product engineering services to India, China, Philippines, only those companies become successful who fine the right talent for their work. Sometimes keeping focus away from cost-savings works as a key success factor.

Most US companies find a talent crunch when it comes to the people who are well-versed with IT services and software development within their own region or country. Cost is the second issue which poses problems. Software developers charge heavily than their eastern counterparts. Lack of quality is also a major cause of concern among software companies. For this, outsourcing IT services to offshore software development centers is by far a lucrative and viable option.

Lack of quality is a problem with the East too. Countries like India and Philippines, which rely on cheap labour are said to be less qualitative in terms of productivity. But it also depends on the client companies, which prefer immediate profit in lieu of quality.

The scope for product engineering solutions outsourcing is vast and holds great possibilities for substantial growth. Many companies can be approached for to maintain quality and precision at only a part of the cost and is waiting to be exploited. It is also pointed out by analysts is that client companies need to have patience and temperance when deciding and approaching their offshoring software development partner. Most of them pose stringent of measures for them and in result do not get a lot of productivity for the same. Also, the remuneration needs to be at least satisfactory so that those who dwell here can be faithful the company for many years to come.

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