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Entrepreneurship: What does it REALLY mean?
Introduction:
In a world where ideas drive economies, it is no wonder that innovation and entrepreneurship are often seen as inseparable bedfellows. The governments around the world are starting to realize that in order to sustain progress...
How To Offer Individual Praise Without Undermining Team Efforts
by Carole Nicolaides © 2002 http://www.progressiveleadership.com A lot of discussions lately are centered around teamwork and leadership. This is especially an issue after all the leadership scandals that have been brought to light in corporate...
Offshore Outsourcing -- Future
Offshore Outsourcing
provides the ability to hold skilled overseas staff at a small
part of the labor cost which is exhilarating to several
entrepreneurs. The vistas in which Offshoring can be utilized
especially in: accounting, advertising,...
Revenge of the Sith – Creativity and Structure
The common belief is that lack of structure and randomness enhances creative output, whereas in truth, creativity is enhanced when it is organised, systematic and based on highly structured processes. This article will use Episode III of the Star...
The Entrepreneur's Toolbox
You have permission to publish this article electronically or in print as long as the resource box is included. Please notify me of publication by sending a website link or copy of your publication to claudette@metavoice.org. Word Count: 771 words,...
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Future of Offshore Outsourcing
Offshore Outsourcing provides the ability to hold skilled
overseas staff at a small part of the laborcost which is
exhilarating to several entrepreneurs. The vistas in which
Offshoring can be utilizedespecially in: accounting,
advertising, animation, Human Resource Management and
Development, health care-related jobs, IT projects, financial
investment and consultancy, legal services, and network
security. The concept of Offshore Outsourcing is couple of
centuries old when the colonial powers started taking raw
materials from their respective colonies and then selling them
after processing them into manufactured commodities. In 19th
century the Britishers (and other imperialist/colonial powers),
because of industrial revolution, rampaged the small-scale and
cottage scale industries in India (and other respective
colonies) by selling processed goods to the natives having a
better quality. Now in 21st century the tables seem to have
turned on the colonizers (or neo-colonizers). Taking advantage
of the cheap labour in developing countries, many MNCs have set
up subsidiaries in India and in other places (like China,
Canada, South America, Africa, Israel, Ireland, Russia). In the
past decade, US companies alone have invested $7 billion in
their subsidiaries in India, picking a net saving of more than
$26 billion. Telstra, an Australian telecom company, for
instance, saved more than $75 million a year by outsourcing many
jobs to Indian enterprises. Latest modifications in the way U.S.
companies are using Offshore Outsourcing Industry have generated
heated controversy, which is comprehensible considering that
jobs are at hazard in an already tense economy. But whereas it
may be human temperament to adhere to the status quo, the
software industry will be better off in acclimatizing to these
changes and allowing innovation to thrive. Detractors have fated
offshore development as everything from shortsighted to
un-American--but it may well conclude salvaging the U.S.
software industry. For staying competitive in the global market,
U.S. software companies must persist in driving innovation.
Nevertheless, innovation today is being choked through
Associated Websites
deficient
R&D budgets on the company side and an overspending menace on
the customer side. Offshore development can help on both sides.
In fact, as pointed out in a recent report by the US Chamber of
Commerce, the main cause of increased unemployment in the US,
Britain and other developed countries is the enhancement in
productivity due to continuing advancements leading to massive
unemployment; and, two, that it has not contributed to
unemployment, as is sought to be made out. Here are the reasons:
For a mature software company, expending on proper product
innovation is much less than what you might think. It by and
large accounts for less than 30 percent of the R&D budget. This
small piece of the pie is being further clutched from two
directions. First, overall R&D spending by public U.S. software
companies is lessening. In fact, in 2002 it fell by 2 percent,
after having consistently grown at 15 percent annually since
1998. Most of these cuts are captivating a bite out of new
product development. Second, R&D budgets are being consumed by
ever-increasing maintenance-related activities, such as
bug-fixing, upgrades and minor enrichments. Maintenance
agreements with a huge customer base mount up over the years
mandate this support. With such restricted resources accessible,
software companies can't successfully produce real advance.
Instead, many of finest and brightest are jammed down in what
amounts to software maintenance tasks. The irony is that many of
these developers would be happier with--and better suited
for--truly pioneering work. But companies have painted
themselves into a corner. This is where offshore development can
facilitate. In most cases, a well-executed offshore development
program can help release an added 20 percent of the R&D budget
for new innovation while continuing to meet the maintenance
obligations of mature companies.
About the author:
For further information on offshore outsourcing and
offshore software
development, please visit http://www.a1technology.com
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