By Erran Carmel

Most sensible off shore ebook out there... nice info...lays it out lovely instantly. effortless to appreciate and follow.

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The firm had roughly 300 employees in its Hyderabad (India) locations scheduled to double within 2 years Oracle began offshoring in 1990. By 2003, its Indian centers grew to 3000 developers with a stated goal of doubling to 6000. Oracle also performs offshore R&D in Ireland and China The offshore spending is disproportionately concentrated in larger firms, particularly in financial services. But even among the largest firms, only a minority is actively offshoring. 1, indicate that in 2004 only about 10% of these US firms were past the experimental stage of offshoring in which more than 10% of their budgets were devoted to offshoring.

These extra costs can sometimes offset wage advantages making offshoring a losing proposition. The extra costs of offshoring are covered in Chapter 2. What is done offshore? ” Director of an offshore development center, Motorola There is no consensus on the question of whether all software activities can now be done offshore. 5 Offshoring by phase of the software life cycle. 14 Survey results of US development managers/engineers in projects that were already partially or fully offshored. Numbers do not add to 100 because the activity could be both in-house and offshore and because some projects did not use some phases.

Stage 2, “Experimental,” is a transition stage in which companies test the offshoring waters for a year or more. For large corporations this stage’s expenditures could be as large as 10–20 million USD per year. Experimentation is a wise approach for organizational learning and risk reduction because of the many difficulties in offshoring. 4 Offshore Stage Model. managers experiment to the point where they see measurable, positive results, and only then do they grow to the next stage. 6 In Stage 3, “Cost Strategy,” companies begin to experience significant and consistent cost savings in their IT work.

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