Companies in the developed markets are continually facing competition in price, time to delivery and quality
It increases demand for the skilled resources and thus increased salaries
Lack of skilled resources in the markets like Singapore and USA to cater for the existing demand
Unavailability of resources on time
Lack of domain knowledge for available pool of resources
Lack of technical expertise for the available pool of domain experts
To get the necessary resources to complete the projects on time with quality and less cost - companies chose Offshore model
Why a onsite and offshore model for software development?
Web/Mobile Development Budgets
Global market for mobile enterprise solutions are set to grow to $12.15bil in 2007 (source: Business Insights by Gary Eastwood)
Worldwide application development and project and portfolio management software license revenue will grow from $7 billion in 2005 to more than $9.9 billion in 2010.
Challenges in Software Development today
Limitations on Development Resources
Short supply of technical experts
Platform and programming language
Domain expertise
Speed of Delivery – Time to market
High costs – higher demand and fewer resources
Support and Maintenance Issues
Source Code Issues
Intellectual property issues
Limitations of getting resources in right time
Retention of resources for complete duration of project
Worldwide trends in Outsourcing of Projects
The Datamonitor and outsourcing advisers Everest Group found the combined value of 2004 deals globally rose by 37 per cent to $163bn.
Outsourcing has become the most preferred means of achieving operational excellence across industries
Preferred destinations for outsourcing have been India and China.
While China has been conventionally considered the hub for manufacturing, India has traditionally attracted most of the services outsourcing projects.
The information technology (IT) industry has been one of the foremost industries to adopt outsourcing as a means of cutting costs and optimizing resources
Definition of Onsite and Offshore Model
In Onsite/Offshore (Hybrid) Delivery Model,
The outsourcing work is distributed between the service provider’s onsite center and the offshore development center &
Thereby the client gets the advantage of both types of outsourcing models.
Usually 20-30% of the work is done by the onsite center and the rest is done by the offshore development center
Tasks accomplished at the onsite center include:
Gathering initial information about the project through direct interaction with the client.
Understanding the requirements/specifications clearly.
Planning and initial designing as to how the project will go about.
Interact directly with the clients to accommodate any changes, so as to minimize/eliminate last minute changes.
Execution/Implementation of the project in accordance with client’s expectations and making sure that the client is fully satisfied with the end results.
Dealing with the client and managing partnership.
Tasks accomplished at the offshore development center include:
Understand the specifications and come up with a detailed design.
Responsible for the progress of the project.
Ensuring that the outcome matches to the specifications given by the client.
Crucial and continuous support to the onsite center.
Advantages of Onsite and Offshore Model
Direct dealings with the client:
Direct interaction with the client is possible through the onsite center. So no possibility of communication gap. Also the service provider gets a better picture of the client’s needs.
24/7 productivity:
Round the clock continuous work cycle is possible by making the best use of the time-zone difference.
Access to the most excellent resources:
Client can have access to the best technology, skilled manpower and equipment possible.
Great cost benefits:
Cost savings resulting from majority of the work being outsourced to the offshore development center where the resources are comparatively cheaper.
Best possible management of resources:
Usage efficiency of resources is highest with this model.
Does Onsite and Offshore
Model matter?
Lack of Skilled Resources
Delayed Time to Market
High Cost and Low retentions of Resources
“In today’s market it is how quickly we implement a system with quality, how cost efficient and how good is the support are most critical factors whether it is to an external customer or internal in the organisation”
The Web Synergies
Advantage
Successful Implementation
Its been a great success in last 9 years
Beyond the cultural differences
Web Synergies team of project managers has lot of experience in working multicultural environment
Satisfied Clients and No Difference
:
Executed projects in this model worth in millions without any difference to the customer. Customer never felt or expressed it is executed offshore
Transparent to Customer
:
Complete execution is transparent to customer i.e our efficient project management team will take care of all the issues involved in this model
Proven reliability:
Reliable and supporting our clients without fail last 9 years
Technology Advantage
Web Synergies is pioneer in adopting new technologies. It is adopted Microsoft .NET in 2002 and successfully delivered $500k worth of project in 2003.
Its also adopted .NET 2.0 and SQL in 2005 early 2006.
