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Outsource Offshore to Reduce Costs
Outsourcing offshore can also contribute to cost reduction by providing access to skilled labor at lower rates. Of the Info-Tech survey respondents, 28% chose an offshore vendor, with 66% of offshore projects being outsourced to India. Additional analyses revealed that those organizations that use an offshore vendor are more often successful at reducing costs than those that outsource onshore (see Figure 1).
Figure 1. Offshore versus Onshore: Success at Cost Reduction
Source: Info-Tech Research Group
Organizations that are interested in reducing costs through application outsourcing should consider offshore. However, it is important to carefully research possible vendors to ensure that they have the technical expertise and industry experience needed for the project, as well as processes in place to manage differences in time zones, culture, and language.
App Outsourcing as a Strategy to Reduce Financial Risk
Application outsourcing is an excellent strategy to minimize financial risk during uncertain economic times, as scalable resourcing often results in rapid delivery with good cost control. Refer to the following case studies to see how organizations use application outsourcing to minimize financial risk.
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