It is to the relocation of the business activities of an organisation (e.g. IT, finance and accounting, back office, and human resource) to a foreign country. Here two important questions could come up in Your mind: why is offshoring becoming more and more popular and how could I benfit from it?
Key drivers of IT offshoring
- Structural and worsening capacity problems in Europe regarding skilled IT professionals. Nowadays it is more and more difficult to find a candidate to an IT position
- Increasing expenditure on IT and software development
- The ability of the developing countries to supply highly-skilled English speaking IT professionals
- The significant investments in education and infrastructure in the developing countries, and their mproved business, economic, and political climate.
- The development of technolgy rearding the Internet and telecommunication
- Last but not least the standardization of IT processes and communication protocols and the expanding success of Open Source also contribute a lot in the growth of the offshoring business.
Benefits of IT offshoring
- Cost advantage, thereby your company can easily achieve higher economies of scale
- Increasing competitiveness, flexibility, and efficiency by concentrating on core activities and focusing on achieving key strategic objectives
- Accessing to unique expertise, special capabilities, and innovative abilities that cannot be found in home country