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Product Component Outsourcing.
In product component outsourcing, the developer
is contracted to develop one or several parts of a software system.
In case of complex systems when the organization does not have
the capacity or required skill to develop a particular component
such component is outsourced. Software Development Process Component
Outsourcing In outsourcing parts of software development cycle,
the customer organization contracts for an external group to perform
all or certain functions of one or more of their process steps.
Software Development Order (total outsourcing)
In this type, the organization outsources
each and every activity associated with the software, which includes
design, development, programming, testing and maintenance. The
main benefit of this type of outsourcing is to focus on the organization's
core activities.
Pros of Outsourcing
Two or three years ago the main argument
for outsourcing was a cost saving. Saving is achieved through
specialization of outsourcer that on one hand reduces costs by
means of knowledge and skills wholesale, while on the other hand
provides quality of functions at the same price due to competition.
Nowadays the majority of managers think of focusing their efforts
on core competencies of the business by outsourcing functions
of developing and maintaining of electronic sales system to a
specialized company. For example, the trade company itself may
concentrate upon a range optimization, logistics, market research,
and above all upon sales and their planning. That is what the
vast majority of big international wholesale and retail trade
networks have done. When supplying needs are delegated to outside
firms rendering outsourcing services within specific area, the
company gets freedom to redistribute resources to support its
core activities. This results in more freedom for directing investments
to the company's infrastructure.
The Joint Center of Economic Studies
has found in executives' responses such arguments as quality of
services, risk sharing. Due to a "wholesale" of its
services an outsourcer has more reasons and opportunities to invest
into purchasing and mastering of new technologies that may be
unprofitable within individual company. It's important that outsourcing
implies performing numerous one-type tasks thus helping to acquire
a hands-on experience. To some extent this is the strategy of
risk diversification between consumer and contractor.
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| The following can be mentioned
as the main benefits of outsourcing: |
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| Global Software Outsourcing |
Global Software Outsourcing
(GSO), also sometimes called as Offshore Software Outsourcing,
is the outsourcing of software development to contractors
outside the client company's home country. The first cases
were as back as 1970s and 1980s. However, it was during
the 1990s that GSO really took off.
At that time Information Systems outsourcing
has been "normalized": come to be seen as a
normal part of a company's Portfolio / Case Studies of
management procedures. The metaphor of outsourcing has
changed its meaning from wild beast to be tamed, to beast
of burden to be harnessed. Sub-contractors move from arm's-length
hazards to potential partners.
Clients have therefore been keen
to normalize GSO procedures in order to increase the benefits
of outsourcing. These benefits include not merely the
greater savings but also improved access to local manpower
and IT market.
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| How it works |
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agreement of the project objectives and requirements we assign a
project manager to handle all the development process. This person
handles all the communication between the client and the team working
on the project. After final approval we start development in our
offshore facility, keeping the client informed about all stages
of the project development with the help of different communication
ways (KSSTech Inc. Project Manager, e-mail, live chat, phone).
At appropriate
stages of the project development the customer receives status
updates to control and correct, if needed, the development process.
Once
the project is completed, it is thoroughly tested by several control
cycles to ensure the maximum quality and flexibility.
After repeated quality
testing the client receives the complete installed and tested
product.
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