Application maintenance outsourcing (AMO) is an important part of application outsourcing. With AMO, you can outsource all the maintenance activities, such as enhancements, corrections and patch developments. Image credit: Flickr You can get the resources that you need for the maintenance phase of your project on a contract basis. These resources include the manpower with the required technical skills, technology and other required resources. Application development and maintenance form about 80% of the total work that is outsourced. The number of outsourcing companies is also increasing due to the huge demand. Thus, let’s take a look at the several pros and cons it comes with. Pros of AMO AMO is a cost-effective solution and improves your operations and technology well. Here are some benefits of AMO: Cost and time saving It lets you have more time to develop the app and for other operations. It lets you concentrate on the core business. It makes use of external expertise. Gives you access to industry experts without paying a big compensation as you would for a normal employee. Allows your work to be flexible. Gives you access to talented IT professionals, better tools, equipment, and technology. Improves the performance, productivity, and customer satisfaction. It allows work to be continued in different time zones. Enables you to go without a payroll system. Nullifies the worry about losing key employees. Cons of...
Outsourcing was considered a taboo in its early days, but slowly it is proven as one of the most significant business models. The rosy days of the global economy are gone and so, while, lowering financial liabilities, organisations have to sustain the quality of service and employ a workforce that is economically affordable and efficiently skilled. Many countries like China, Malaysia, Philippines, Mexico, Indonesia, and Thailand are rapidly growing as preferred destinations for global outsourcing, but India leads the race by a wide margin since the inception of outsourcing. So, let’s see why and how India managed to remain in the spotlight. Cost Effectiveness Every business strives to be as cost effective as possible, and one of the best ways to cut down on operational costs is to reduce manpower expenses. India qualifies well on this metric and hence attracts foreign companies to invest here, as resource wages are comparatively lower as compared to other countries. With low labour costs, immense human resources and excellent infrastructure, offshore companies can invest and expect their projects to be completed with high quality and minimum expenses within strict deadlines. Skilled, Professional Manpower Currently, India has about 2.75 million software developers in the national workforce. By 2018, this count will reach 5.2 million, a whopping 90% increase. India’s software development growth-rate is attributed to half the population being under 25 years of age and current economic policies. India is a budding hub of developers and coders, promising to provide world-class services to outsourcing companies. Apple Inc., the leading technology giant, is looking into setting up a company-owned, technology development centre in India. If this happens,...