As clouds of hesitancy concentrate around the IT outsourcing arena, enterprises across business verticals have started exploring alternate models of off-shoring.
As a matter of fact, outsourcing is posing as a big-ticket expenditure item, as offshore contracts account for up to 20 per cent of an enterprise’s total Ecommerce Agencies. And though cost savings is the foremost reason for which IT firms outsources projects, the actual savings turn out to be only about 15 per cent.
Furthermore, the difference between Top Ecommerce Companies offshore and onshore labor costs is curtailing. As a result, the original concept of outsourcing has hit the downhill and businesses are exceedingly exploring alternate models.
Eyeing the eroding profits resulting out of typical outsourcing contracts, some major models that are being taken into consideration are as follows:
Selective Multi-sourcing: Multi-sourcing is considered to be the most apt way to outsource services, as it ensures that each outsourced task gets ‘best-of-the-breed’ services.
However, many organizations find this model daunting, as it is intricate to manage multiple vendors in a single work environment that is interconnected. However, over the period of time organizations have strengthened their governance capabilities and developed internal organizations for vendor management.
These internal agencies prevent value leakage by overseeing particular outsourcing vendors. With a noteworthy increase in maturity and experience, various organizations have pulled up their socks to take up multi-sourcing responsibilities.
Another variation seen in the traditional self-governed model is the hiring of a third party to oversee and control the governance of multi-vendor environment.
The concept of in-sourcing has picked up steam especially in cases where customer satisfaction or service delivery issues have cropped up time and again. This model is being increasingly adopted by organizations that have sour relations with their outsourcing vendors or are finding it challenging to manage outsourcing transactions. Organizations usually make this decision depending upon the type of service and continually outsource the ‘towers’ for which service provider is rendering satisfactory efficiencies. In this model, all major in-sourced activities are removed from the scope of the IT outsourcing company.
This requires the scope contract to be revised, including renegotiation of related conditions and associated terms. Organizations need to be mindful that the resulting contract should clearly demarcate outsourced and freshly in-sourced functions.
Despite of all major benefits, in-sourcing comes with its own set of downsides as well. Thus, companies should carefully weigh the decision of in-sourcing.
Captive Offshore Centers: Multinational companies pioneered the concept of captive offshore centers in the early 1980s.
While cost-saving is an overriding benefit of this model, it also bestows upon organizations the freedom to safeguard and retain their data, key processes and skills. It also enables them to steer their operations in a strategic direction, rather than depending upon a third party for making leadership decisions.
Though examples of successful captive offshore centers are easy to locate, some companies find it challenging to hire labor for their work centers when juxtaposed with global outsourcing leaders, and thus are unable to deliver similar service quality and work efficiency.
With the changing scenario, however, as the growth of offshore service vendors has steeped low, companies are able to bag in best resources from the offshore talent pool that can operate locally at a long-term basis.
This model is not suited for small scale firms but can prove highly attractive for multinationals, which have devised plans to establish and foster their marketing horizon in the offshore locations. It also gives organizations a chance to absorb work culture of a particular area.
As off-shoring and IT outsourcing fails to generate expected cost-savings every web development company is looking forward to alternate models as the next big thing.
Things You Need To Be Aware Of For A Better Web Application Development Process
Do you think launching your brand new website or re-developing the existing website a simple process? If so, then you might need to change your perception as there are a lot of things one need to consider before diving into the world of web application development. How to approach?
Well, this article is all about a few of the possible ways through which you can achieve a better web application development process while leveraging from the sweetest fruit of success through clear idea about the website, well-planned and smoother interaction with the web application development services provider.
Do you think launching your brand new website or re-developing the existing website a simple process?
If so, then you might need to change your perception as there are a lot of things one need to consider before diving into the world of web application development or choosing a web application development services, and it turns out to be a lot more complicated things than just defining the budget.
One thing that everyone should be clear about is that a website is not just a product, it is a service. Therefore, choosing a right of web application development services has become more crucial and quite a daunting task. Moreover, more than 80% of the organizations had faced terrible issues when it comes to launch their website. Do you know the reasons?
Well, one of the main reasons is that web development industry is quite new with a very tiny set of standards. Generally, it will take a lot more time to appropriately define the development process than what it will take to set up an entire website. Sometimes, the plan of developing a website is defined by the client instead of being a combined decision of the client and the development agency.
Setup an entire new website is not a kid’s toy. It goes far ahead from simply identifying the amount of space you need to cover and what kind of stuff you will need to make the things work. Developing each and every website is not always the same process as no project or website requirements are same like the other. Due to this, approaching for the web development service provider or developing a site is totally different and is far ahead from being the standard process.
So, how to approach? Well, below are a few of the possible ways through which you can achieve a better web application development process:
First and most important thing is to find out the goal of creating a website or web application. It is must have a clear about the business goals. You should have a clear picture about what you would like to see on the website for your business prospective rather than thinking from the website’s look ‘n’ feel prospective.
How will you measure the success of your web development venture? What are the actual user requirements? How can you convert them into a customer? Most of the site owners try to analyze their competitor’s websites to get an idea. If you are doing so, then stop doing it and try to give your own input to accomplish your goals.
Establish business objectives and a budget as it will help you make your investment a worth spending for your business. The professional service providers will bring a lot of options to choose from based on your requirements.
Don’t try to interfere with the development team. In order to speed up the development process, it is very essential that you allow the team of developers to input their own creativity and ideas in order to achieve your business goals.
You should definitely give your feedback on their ideas, but make sure you never interfere in their work. It will help you achieve a smooth interaction during the entire project and ensure far better results.
Last but not the least thing is that try to entrust the service provider you have hired for your web development venture.
The process of creating a better website requires a trust and showing your faith in the agency will help you leverage from better results and a long-term relationship.
Have you had any bad experience during the development of your website? Share it with us…!