The offshore outsourcing market has evolved over the last decade. Today, most of the companies are relying on offshore software developers and Business Process Outsourcing for Customer Support Services to explore the business with low investment cost.
Offshore services are categorized into three parts -
Most mature - Application maintenance and management, application migration, and legacy application development.
Medium maturity - New custom application development, enterprise application integration, implementation of application packages (e.g., ERP, CRM, SCM), and business integration.
Least Mature - Call centers, business process outsourcing (BPO), infrastructure outsourcing, ERP services, remote network management, product engineering, embedded software, and technical services.
The two fastest growing segments of the offshore services market are application management and business process outsourcing (BPO). BPO is capturing the attention of many executives, as a way to reduce the costs of business processes such as customer care, billing, collections, claims processing, and various other back office functions and leaves business owner free to focus more of the other resources to maximum benefit.
Offshore providers will strive to create or extend differentiated capabilities and continue to expand their services portfolio offerings to include higher value add project-based services. Given the growing level of competition in the services outsourcing market, companies that don't have unique capabilities will be subject to downward pressure on billing rates.
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