Offshore outsourcing is emerging as a flexible and powerful approach that companies can use to achieve a wide range of tactical and strategic aims. Many organizations are outsourcing their software development, testing, support, technical design, application and data management, thereby enabling them to focus more on understanding customer needs, achieve better product positioning and enhance customer satisfaction.

Why Companies Outsource?
Outsourcing requires an understanding of the concept of core competencies. Core competencies are the capabilities of an organization that truly distinguish it from its competitors. They are unique capabilities upon which the success of the company, both today and in the future depends. Core competencies are what give an organization its clear leadership position as seen by its customers. All remaining activities are non-core, and executives are now asking if their company is best in world at performing these activities. If not, they explore how outsourcing these activities might enable the company to deliver greater value to its customers at lower costs.

The Outsourcing Institute, New York, defines the practice as "the strategic use of outside resources to perform activities traditionally handled by internal staff and resources."

Pricewaterhouse Coopers commissioned a study of Outsourcing Trends among the top 300 global companies. And according to the report, 73% of those companies have outsourced at least one process. Some of the main reasons why companies outsource are:

• Concentrate on Focus Areas / Core Competencies.
• Access to World Class Capabilities, rather than possessing them.
• Risks can be shared in terms of Capital Investments, etc
• Reduction in Operating Costs.
• Resources not available internally. Companies outsource because they do not have access to the required resources within the company. Sometimes this is due to expansion or reorganization. It may also be due to changing business requirements.
• Accelerate re-engineering benefits. Outsourcing is often a by-product of another powerful management tool, business process re-engineering. It allows an organization to immediately realize some benefits from this process.
• Cash Infusion. Outsourcing often involves the transfer of assets from the customer to the provider, such as equipment, facilities, leases and licenses.

Infotech's Outsourcing Models

• Total Offshore Model: In this case the total work is done offshore, away from the Clients Location. Within this model, a Dedicated Offshore Development Center (ODC) can be set up for the client, or a dedicated pool of people can work for the client on a project-to-project basis depending upon the requirement and the workload of the Client.
• Offshore but not in India: In this case Infotech can run an Offshore Development Center elsewhere which is suitable for the client's requirements. For example at Infotech Aerospace Services Inc located in Puerto Rico or another suitable location for the client.
• Offshore/Onshore Model: In this case part of the work is completed offshore whilst the remainder is completed onshore in our local offices. This is particularly effective when data is sensitive or requires proximity to a clients location but the more routine and less sensitive tasks can still be completed offshore.
• Offshore/Onsite Model: In this case, major portion of work is done offshore, however parts of work like training, implementation, etc are done onsite by the company providing offshore services. Also the work involved may require one of the consultants to be onsite through out the project. Various Scenarios can be recalled in this kind of an Offshore Model.
• Offshore/Online Model: Infotech delivers its outstanding services on-site without the added cost and time of travel etc. Instead, via an efficient broadband communications and latest thin client technologies, Infotech is able to deliver data as if its team sits in the client's office. When the crunch is on, an added bonus to off-site support is having additional Infotech staff available on an "as need" basis.
• Total Onsite Model: In this case full time consultants are placed onsite at the clients location to perform the work.
• Total Onshore Model: In this case all the work is done onshore at our local offices using local teams. In some cases, offshore teams can be brought onshore and work within our local offices.

Regardless of the outsourcing model chosen all project management is handled onshore by our local offices. There are many advantages with maintaining onshore responsibilty but some of the key ones include: no time differences, no language or culture barriers, and improved relationships through easy access to key personnel and regular face-to-face meetings.