Offshore Outsourcing Models
Offshore and Nearshore
Outsourcing can be done either offshore or nearshore. A
software company showing a greater degree of innovation in its IT initiatives
would prefer to ship its work offshore rather than inshore as offshore
development provides access to talented, experienced developers who can respond
to the need for a complex business solution or application, quickly and cost
effectively.But There are risks involved with geogrophical locations of offshore companies aswell.
There are several other models to choose from,
including those with and without a U.S. presence.
Offshore firms without a US presence:
Difference in the time zone may raise the problem of
communication between the client and the offshore project manager in the case
of a firm without a US office. Communication is usually via email or telephone
but at times it becomes absolutely necessary for the project manager to travel
across the globe to visit the offshore needs. The offshore company generally
has its resources intact and can work on the project right away but at the same
time it is difficult to verify the technical expertise of the project team and
to establish a strong working relationship with the project manager.
Reliability and security concerns can also be issues when working with these
Company with only a US sales office:
They offer lower rates but despite a local escalation path,
the level of customer service they provide is limited by their lack of local
technical expertise. The project manager is located at the offshore facility so
communication occurs via phone and e-mail, and the lack of visibility to the
project team and facility can raise reliability and security concerns.
Company that has a US office:
With onsite analysts, project managers, and developers they
offer slightly higher rates, but they are able to respond to client requests
much more quickly and easily because local project managers team up with both
U.S. and offshore technical resources. Due to excellent customer service and
increasing popularity, this model happens to yield better gains than the