Off-shoring is a process where services like customer support, software development and maintenance are moved to areas where labour costs are less, for example countries like India, China or Europe.
Globalization also influences factors like technological development and its maintenance in the business. Companies are planning to decrease the maintenance costs by adopting global standards for desktops, e-mail systems and servers.
Globalization also affects in the process of application development. Accendo Technologies has a team of technically skilled people who creates advanced Information Technology systems which enhances the operational efficiency of their clients.
Global management of skills helps to minimize the costs. Let us see the effect of Globalization on offshore IT application development and maintenance sector:
- There is greater investment by software companies in global business services models, shared services and offshoring under a same governance platform. Accendo Technologies implements detailed offshoring methodologies and infrastructures and treat their clients as a part of their team.
- Recent trends in offshore application development and maintenance services sector indicates specialization and fragmentation of IT outsourcing among various vendors. It is due to the globalization of large companies. Accendo Technologies is a fast growing IT company provides services related to offshore IT application development and maintenance.
- Globalization leads to a development of catalogue driven model. Where everything like Storage, Communications, Network and monitoring are provided as a service. Customers have various options to choose. They can select their desired services off the shelf with defined validity. This enables them to opt for customized solutions as well.
- Automated self-service platforms are offered which helps customers to perform tasks like testing or application development and maintenance. Globalization helps buyers to seek standardized solutions from their outsourcing companies, who need to differentiate themselves through performance and not by pricing. There is a strong competition for short-term cost pressures and to provide flexible pricing contracts on service providers.
- Companies functioning in the areas of offshore IT application development and maintenance have started moving from pure maintenance to full life-cycle projects. With the multiplication of locations and division of teams, the costs of hardware/software and their administration is increasing significantly. Also network bandwidth and reliability is improving and becoming cheap.
In view of global economy – areas related to offshore IT application development and maintenance will continue to evolve. Service providers will need to constantly assess and upgrade their portfolio of services with adequate supply of skills.