Profit From The Outsourcing Rebirth After The Downturn

Cost cutting in the area of software development. Image credits: stock.xchngBefore the downturn, outsourcing was becoming more and more popular mainly thanks to unrestricted access to resources and knowledge of specific domains. Partial reduction of incurred costs was another reason for it and it turned out to be the main reason during the downturn. Nowadays, outsourcing seems to start increasing again. Considering your IT outsourcing providers as a business partners could additionally speed up your recovery once the market starts growing again.

Invest with focus on the result

Is there any point to give up the business strategy that is successful for your company? Needless to say, more favorably would be to retain an outsourcing strategy that works for you. During the past years outsourcers drew a conclusion from the lesson they were given by the downturn. Their investments seemed to be more focused on the result they are going to achieve, which is rather reasonable and healthy thinking. During the downturn firms were forced to put their IT budgetary allocation on hold, however, now they are more willing to renew their spending on IT projects, calling them “discretionary spending”.

Make use of the higher efficiency of offshore teams

Duke Offshoring Research Network’s (ORN) fifth annual report on offshoring trends, shows us doubled amount of U.S. companies collaborating with IT outsourcing providers and it only regards to years 2005 – 2008. Duke concluded that offshore development teams are more efficient and that’s what makes outsourcing so attractive. We fully agree with this conclusion. Offshore developers in general are able to focus more on their work, they are not being disturbed. Thanks to more formal procedures they know better what to work on. Besides they are able to specialize themselves in a more narrow IT domain. By considering your outsourcing provider as a real partner you will also be able to profit from this efficiency gain. So why shouldn´t you? I am curious about your experiences and opinion, feel free to share them below, or meet and discuss on Facebook or through Twitter via @GOYELLO or @PetersOpinion.

VP Software Development Europe for Aspire Systems. Sociologist and electrotechnical engineer, a great combination that stimulates him to look for the best working software solutions for clients. Passionate about converting great ideas into new solutions. Married and a proud father of 3 great sons. Training for and participating in triathlons/runs to stay fit.