Who should be considering offshoring?
AA: One answer is that everyone wants to do it for cost reduction but you need to look at the type of projects. If a project requires lots of interaction, its not a good candidate. It depends on the project and level of communication. If youre designing a GUI and 10 people are giving their input, outsourcing isnt the best thing to do. There are companies that can help you do SAP, CRM systems and other complex applications and then there are companies that are actually building serious IP out of India. Start-up companies in Silicon Valley are pretty much required by the VCs to have an offshore center. Large companies like HP have figured it out and the start-ups have no choice but to figure it out. The problem is with the mid-size companies. They are reluctant to start their own centers and they need to figure out a strategy to identify high-quality partners in India. In terms of the types of companies that are aggressive in outsourcing, financial companies and banks are the leaders. Te
