Offshoring & Decos Software Model
Concept of Offshoring
Outsourcing is a business activity through which business firms attempt to reduce or eliminate its non-core areas of functioning by contracting with another company who provide services at lower costs that might otherwise be performed by in-house employees. This arrangement would lead to lesser resource consumption and increase the competitiveness of the business organization.
Two outsourcing models that are popularly adopted are -
Nearshoring (also known as “nearshore outsourcing“) means sourcing service activities to a foreign, lower-wage country that is relatively close in distance. The expected benefits are from one or more of the following constructs of proximity: geographic, temporal, cultural, linguistic, economic, political, or historical linkages.
Offshoring (also known as “offshore outsourcing”) literally means outsourcing your activity to one who is positioned in a country that is geographically remote from your premises or who is beyond your shore.
This has further given rise to the concept of “Offshore Development Center” or ODC where a dedicated team of programmers and developers are handpicked to complement the customer’s skill set and culture. This customized team works exclusively on behalf of the customer at the service provider’s site or their own captive site in a secure environment. The infrastructure and security can be designed to meet the customer’s specific standards and specifications, and may include co-branding. Indeed, the closer the synergy between an ODC and an organization’s own IT/development department the better. The ultimate goal is for an ODC to be a seamless extension of an organization’s IT department.
The main reasons why one might opt for software offshoring
- Limited Resource capacity: The number of developers to work on a project may be insufficient and there may be a lack of finances for hiring more. In this case Offshoring proves to be extremely cost effective and also gives scope for hiring a team of developers at a low cost.
- Technology expertise: Offshoring gives access to a pool of resources across various technologies & skill sets. There is a rich availability of senior software engineers with expertise on various technologies, industry experience & knowledge and good qualification. You can choose a team of engineers with expertise on a particular technology or a mix of technologies to complement your project.
- Resource availability: In the offshoring model there is abundance of resources giving scope to quickly allocate an extra resource as per the need of the project. This gives the flexibility to rapidly scale up the team size to accelerate the completion of a project or accommodate new development plans.
- Budget: The offshore model gives the advantage of bringing in resources within the allocated budgets for software development. This is possible because the rate/hour for a senior software engineer in this model is very low. This allows a company to continue with the current software development and also to plan new projects such as – new product development/testing or product enhancement.
Advantages of Offshore Delivery Model
- Excellent results: Clients can get high quality work from the offshore resources. If the offshore team consists of senior software engineer with good technical expertise the success of the development is ensured in terms of both- delivery & quality.
- Access to various technologies & skill sets: Client can have access to the best possible technology, skilled manpower and equipments. Qualified and talented senior software engineers are available with expertise & experience on the desired technology.
- Gain a competitive advantage in the market: Clients can focus on business planning, sales, marketing and branding goals, while the operational aspects of related development & maintenance of software applications & products are managed by the offshore partner.
- No infrastructure investment: Client doesn’t have to worry about the infrastructure needed to complete the project as it is made available by the company providing the offshore team.
- Reduced costs: Advantage of low labor cost, which will be reflected in drastic reduction in the overall costs. The average rate/hour for a senior software engineer in India is €20-25, which is extremely economical.
As Dutch companies learn more and more about offshore outsourcing, slowly but surely they are adopting offshore practices. For service providers the major challenge in the Netherlands has been to propose a mutually beneficial and strong value proposition which can take care of -
- Concerns & reservations that Dutch companies have regarding offshore outsourcing.
- Communication model & Time difference.
- Understanding of Dutch culture & businesses.
How can Decos Offshoring Model help address the concerns above?
Decos Technology Group (DTG) is a Dutch company providing cost effective Offshore- Software Development, Maintenance & Testing services in the ICT industry in the Netherlands, Sweden and Europe for the past 22 years. With a primary focus on the Dutch and Swedish Market, Decos is successfully serving more than 25 European companies as their outsourcing center.
From small start-up ventures to Fortune 500 corporations, Decos provides software solutions, products, testing & development services – to help these companies to manage their IT projects & enable their growth by offering onsite & offshore highly skilled & educated software engineers.
Decos has the experience, credibility and technical competencies to work on joint development of products & projects in verticals such as ICT, Telecom, Finance, Insurance, Retail, Travel & Tourism, Logistics, Healthcare and Manufacturing.
Decos provides a pool of technologies to choose from – ranging across Microsoft technologies, Open source technologies and latest Web Development technologies such as Web 2.0.
Decos has its own line of products developed In-House and hence has expertise in complete software product life cycle from conceptualization, final product development to quality management & testing.
Decos Software Development processes adheres to the requirements of Quality Management System under ISO 9001:2000, assuring high standards of software quality & 100% success in project delivery.
Decos has developed a unique offshore model which focuses on providing dedicated offshore teams of highly qualified & experienced software engineers working directly as an extension of the client’s on-shore team. This dedicated team works in the European business hours.
Decos has a state of the art infrastructure that facilitates multiple communication channels while ensuring timely project completion.
Decos Offshore Model ensures process transparency, flexibility and goal oriented software services and has been very successful.
This makes Decos an ideal partner for companies looking for outsourcing or offshoring solutions.
- “Het is handig als iemand je verstaat” “It is useful if someone understands you”
Decos has established long term Partnership for joint development of products / projects with many Dutch companies and has contributed in enabling their growth. Over the past 22 years Decos has built strong partnerships with Dutch companies gaining immense knowledge from them and a deep understanding of the Dutch culture and businesses.
Offshore Outsourcing in a difficult economy
In difficult economic conditions Offshore Outsourcing becomes significantly useful as a lot of companies have tight budgets but still have to manage the operational side of business such as product development, testing, enhancements, maintenance etc…. Offshoring provides a reasonable alternative and can save a company from cutting down on software development or enhancement costs/budgets. Offshoring alternative can empower you with all the necessary support to move ahead with expansion, new development plans, new product launch and maintenance in turbulent economic conditions, thus allowing you to remain competitive and get an edge over your competitors.
Thus, Offshoring becomes a well considered strategy to help save as much as possible, and with a good partner like Decos- offshoring becomes an easier & safer option.