The Global Recession and Its Impact on IT Outsourcing

Since last decade outsourcing software developmentmore businesses in USA and Europe started to take
projects is getting lots of attention and manyadvantage of offshore software development to
companies in USA and Europe has opted this option.reduce their operating costs.
Outsource or not to outsource was always been aFew of the advantages of Outsourcing are:
challenging question till early 2008.* When you hire an offshore software development
But recent global recession has hit the internationalcompany as your IT service provider, you never have
market, Outsourcing became more widely acceptedto worry about putting them on your payroll. Instead of
business decision. Companies which always thoughthaving to hire an employee and add them to your
that outsourcing can be a risk and hassle to deal withmonthly payroll, you can simply set your terms up front
started looking into offshore software development towith your service provider.
cut down or reduce fixed cost without cutting down* If you hire a new employee your company will have
on their Information technology related requirements. Into offer him/her a wide range of benefits beside
today's fact pace world, cutting down on yoursalary, which can cut into your profits over time. But
companies technology requirements may translate intowhen you outsource a project you will never have to
loosing valuable business opportunities. In order to keepworry about benefits because you are hiring a
up with competing market demands, lot manycompany which will deliver your software
companies have started to outsource by establishingdevelopment requirements with no permanent string
strategic partnerships with offshore IT serviceties.
providers.* In last two decades, countries in Asia like India,
We have to look outsourcing business growth inPakistan, Philippines have developed tremendous
relevance to business growth in other industries sinceamount of expertise in handle international projects and
economic meltdown. While businesses in differentdeliver them on International Quality standards. Thus
sectors closed down or hardly survived, IT servicequality may not be a risk factor in dealing with well
providers sustained this global financial crunch becauseestablished IT Company overseas.