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With the proliferating growth in technology and Innovation and the necessity to use new technology skills, outsourcing has become a notable trend in the IT industry. Characterized by USP's like cost-effectiveness and timeliness, outsourcing companies has surged tremendously in the last decade. However, amidst the entire buzz, outsourcing has contributed to some major failures at recent times (A & M, 2016). That has even made organizations to critically think before going forward with an off-shore outsourcing company. A substantial issue on organizational capability and on-time delivery has questioned the very foundation of its efficiency. This has now leaded to surface some very extreme opinions about outsourcing, with rave reviews on good/ bad.
Software Development outsourcing encompasses a contract based voluntary relationship between vendors and clients, wherein a client outsources a part or all the business activities to the concerned vendor. However, an offshore outsourcing demands completely different capabilities as against a domestic outsourcing. To begin with, firms associating with off-shore outsourcing must need to compete against language constraints, cultural differences, contrasts in time zones and also the organizational structures. Next, an off-shore outsourcing has a far greater impact than a domestic outsourcing with the above constraints introduced before. With regards to the core knowledge capabilities, there calls for probable risks so as to understand the level of efficiency of the outsourcing companies (A & M, 2016). Together with the differences in legal laws, risks related to data security, privacy and intellectual property can be critical too. Such disadvantages in outsourcing can be a high limiting factor to the growth of these offshore outsourcing, hence it must, therefore, be necessary to understand the level of efficiency of an offshore outsourcing team before relying on them.
Patel, D. (2017). Key to Success of Offshore Outsourcing. Retrieved from https://digitalcommons.harrisburgu.edu/pmgt_dandt/19