Facts and Trends
Currently the large companies are active players in the field of outsourcing. Outsourcing is quite a step to take but more and more medium and small scale companies discover the potential of outsourcing. Companies currently outsource for 17 billion dollar a year and is expected to increase to 25 billion in 2007.
Global giants such as IBM, Microsoft, Novell, Oracle, AT&T, Fujitsu, Motorola, Digital, Hewlett-Packard Philips, General Electric, IBM, Reebok, Fujitsu, British Aerospace, General Motors and Sears are keeping ahead of their rivals thanks to the competitive advantage conferred on them by some of the best software companies in India. But by far the most important benefit of outsourcing for us is the increase in flexibility. If we need a large project we are no longer restricted by the capacity of our own IT-department in USA & India.
Pitfalls
Although outsourcing offers many benefits, there some aspects that require special attention:
- Communication barriers
- Cultural hindrances
- Language difference
- Partner selection
- Management of collaboration
