More and more US companies are now turning to a service provider based in USA for their IT projects. Yes, that is right! Compare to the last year and years before, many of the companies who tried to outsource their IT projects to an offshore service provider primarily to take advantage of low cost resources, are now bringing their projects back home. After dealing with the delays in the software delivery, headaches associated in trying to overcome cultural differences, and poor quality issues; even companies having skilled internal project managers in-charge of their outsourced projects have realized that the real cost savings are not as much as they expected it to be. In many cases companies have ended up shelving their projects unfinished or had to start over again making it a costlier affair.
The common problems faced in offshore outsourcing are
- No face-to-face communication
- Lack of cultural and business understanding
- Time zone differences
- Less than adequate communication skills
- Poor quality standards and efficiency
- Delays in delivery timeline
- Increased management overhead on client’s side for managing outsourced projects on daily basis
Besides the issues related to offshore outsourcing services, decreasing cost difference of comparable resources and ability of Local NJ IT consulting companies to provide a strategic combination of local and overseas resources has driven many companies to consider a local service provider.
So how do local companies prove to be a better choice?
- Local presence making it possible to have face-to-face communication between key project resources
- Better commitment to the success of project
- Reduced management overheads on client side enabling them to stay focused on the front-line of their business
- Better sync and alignment within teams due to service provider’s working experience in the same professional environment as their clients
- None to limited time zone differences
- Reduced delivery timeline due to higher efficiency and better quality standards
- Some consulting companies having ability to provide a strategic combination of local and overseas resources to remain cost-effective without affecting quality, efficiency, and delivery related issues
With the changes in outsourcing model, combined direct cost savings and ongoing return on investment, companies are finding it possible to save as much as 35% of their IT costs versus the maximum 20% cost savings they ever saw with the offshore outsourcing. That makes it a viable and wise decision for companies to turn to their domestic counter parts.