While reducing the costs is still the number one reason for the outsourcing trend, another key factor is that companies are looking to free up internal resources to focus on more critical initiatives. Globalization creates new opportunities for those businesses that know how to establish sophisticated and interdependent relationships with their offshore vendors. These enhancements relationships are typically for the maturity phase of IT outsourcing.
At its maturity phase, outsourcing advances beyond the conventional project model: offshore vendors provide their customers with exclusive full-time dedicated resources on a long-term basis. An Offshore Dedicated Team (ODT) customized to the customer’s requirements, practices, and even culture operates as an extension of the in-house staff. The ODT model sets the customer free from such problems as incorporation, recruitment, office lease, infrastructure set-up and maintenance. Using an ODT, a business can reduce development costs, get access to specific skills, gain better control over the entire development process, achieve easy scalability, and have the accumulated expertise transferred back in-house.
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