Offshore advantages

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Offshore Advantages

The table below gives a summary of major points. Click on a heading to see more information.

Quality and Technical knowledge	Some of the very best developers available anywhere are offshore, and you can have a top notch team working for you in very little time. All the latest development tools and training are available. Careful selection of the right company is key.
Cost	We know companies that charge between $10 to $35/hr. for services. Savings can thus be enormous. Several companies also offer fixed-cost contracts. There can be additional communication costs plus there may be some travel costs. We can help you keep these low.
Start-up Time	Often this is MUCH faster than trying to staff a project in-house. Small projects can be started within days. Just be sure to get a company that can really fulfill you needs and one that actually has the skilled resources.
Communication	Satellite, internet, voice, and video conference technology are available and in use by good companies. We can help you here: Not all companies have good access to these services or have them as an expensive addition. Poor communication a key cause of project failures.
Security of data, etc.	Excellent security exists, and many governments now have enacted extensive intellectual property rights legislation. Some offshore firms are US Corporations and thus operate under US law. Actual practices vary widely between companies. You must pick companies with the right resources for your needs.
On-Time Delivery	Several companies offer delivery guarantees and most can quickly add additional developers if needed. On-site inspection of actual resources helps minimize expensive surprises.

Quality: The knowledge to do nearly any job well is available offshore:

Many of the world's major software programs are developed in whole or in part offshore.
Nearly all of the Fortune 500 use offshore development services or have their own branches set up offshore.
Major hardware and software giants like Microsoft, Apple, Novel, Sun, IBM, Compaq and Texas Instrument have extensive offshore operations.
Training on the latest technologies and modern hardware are easily available.
A large number of companies are ISO 9000 certified

In short, the ability to do nearly any software project is available offshore - IF one chooses the right company. We often find offshore companies state they have the ability and seem to have all the right credentials, but on closer inspection they did not have the real experience to get the job done, or the team with the experience is fully involved on other projects. This is why our method of really inspecting companies works so well.

COST: Savings of over 50% are typical and can be much higher.

We can usually save companies over 50% of the costs of hiring personnel and even more if the solution was to use contractors. You wind up with all the normal outsourcing benefits of no continuing personnel cost obligation and have a much lower cost as well.

In general, here are costs you can expect:

Developers	Generally, $20 to $30/hour, depending on country and type of work contracted. Some work can be done for less, while specialties like SAP can cost more. There is usually an additional charge for project management for all but very small projects.
Data, Voice and Video Communications	Minimal if requirements are not excessive and the internet can be used. Dedicated Satellite links can run over $1,000/month, but few need this level of service. Highly secure connections are easily available now. (see communications)
Transportation, exchange of personnel	Nearly all larger project necessitate some of the offshore team be at your site for spec gathering in the beginning. Large projects may mean you will have Offshore company personnel at your site throughout the project. You pay airfare, expenses and a per-diem. It often highly desirable that some of your personnel visit the Offshore facility. We can advise you on typical costs based on the kind of project you have.
Equipment Costs	Offshore companies commonly have modern PC, UNIX workstations and certain mainframe equipment available. If additional equipment is needed, it is usually supplied by the client. Some countries impose taxes on this equipment while others charge nothing as long as it is used exclusively for you project.
Legal	Minimal unless you want to set up your own offshore company (not recommended for first time users!)

Start-up Time

The actual time it takes to get your project started depends on several factors:

Project Size	No one really has huge numbers of developers sitting around waiting for a contract from you. Firms often do have a few developers they can free up to start small projects or to get started on a portion of larger projects. Project managers are another key element. With a large number of companies to choose from, and actually inspecting available resources, we usually can find solutions that get you started rapidly and far quicker than you could staff a project internally.
Type of project	If your project requires special training, it will take extra learning time. Personnel will usually be sent to your location and then return and train offshore personnel.
Specifications	In nearly every project, some time must be devoted to gathering and submitting specifications. If you project has poor documentation, more time must be allocated.
Communication	It does take some time to establish good understanding and communication between your key people and offshore personnel. We can help you minimize any delays here to guarantee good communications and project management routines get established rapidly. Lack of attention here nearly always causes problems.

Communications:

The past few years have seen huge improvements in communications. It is now easy and inexpensive too exchange data, voice, and video over very secure links. The least expensive method is via the Internet. Phone is often fairly expensive, but costs can be cut by using voice or video over IP.

Top companies have set up highly secure servers that enable you to have near instant communication anytime with high level encryption. You can easily review progress or have all work submitted daily for review over these secure links. Usually, one sets up a schedule when "meetings" will be held to review progress and any desired changes.

If you need extensive interaction with people within your company, project management personnel and some developers can be posted at your site. They interact with your people, attend your meetings and run the offshore team from your location.

If very large amounts of data need to be exchanged instantly, satellite links are available. Several offshore companies have satellite links to branches here in the US and will contract time-sharing on these to you. You can also set up your own dedicated link. Many do not need this level of service and the Internet can be used for daily data (Megabytes) exchange with inexpensive courier services used for huge (Gigabyte) transfers.

SECURITY OF DATA AND INTELLECTUAL PROPERTY RIGHTS:

Security is an issue, but in general projects sent offshore are no more at risk than anything outsourced domestically. A security breach is a terrible stain on any companies reputation, and most take it very seriously. Top offshore companies can offer security on par with US corporations with extensive background checks and identification requirements for anyone entering areas that have customers code available. India has made Intellectual Property violations a non-bailable offence.

Some offshore companies have set themselves up as US Corporations which means any contracts you sign with them are governed by US law, and disputes would be handled in US courts.

ON-TIME DELIVERY

One of the biggest things we look for is the ability of a company to meet delivery schedules. Huge cost savings are of no value if there are completion delays. Experienced project managers that know how to properly set schedules, create realistic expectations, and maintain communication well with clients are essential. A good company will not accept un-realistic schedules. Top companies will give you realistic schedules and even guarantee completion dates and/or costs.