| Offshore product development has caught the | | | | One of the most plausible and successful reasons to |
| imagination of the entire business world. Offshore | | | | offshore product development is to acquire expertise |
| product development can be used in for various | | | | not currently available within the company. This lack of |
| reasons and for various fields. Sometimes, an | | | | expertise could be because of a specific, or it could be |
| enterprise opts for offshore product development to | | | | due to sudden rise in demand that exceeds the |
| manage costs, boost bottom line and save time for | | | | company's existing capability. In both situations, |
| core activities. Other times, some strategic purposes | | | | offshoring product development is an excellent way to |
| such as dispense with some centers located at critical | | | | plug the need for expertise. |
| geographical regions have bearing on the option for | | | | Other very pertinent reason to outsourcing is to |
| offshore product development. There are several | | | | minimize costs involved in the development of |
| reasons for offshoring option. But the basic question | | | | products. Offshoring seems to be a better and |
| which comes in everyone's mind is when and where | | | | cost-effective measure, if you take into consideration |
| does it make sense. | | | | all costs involved in maintaining the necessary |
| Here are few points which can answer the question: | | | | capabilities within your company, which include: |
| - There is a need for resources the company currently | | | | Employee costs, Overhead expenditure on office, |
| does not have to complete all of the required work. | | | | Supporting costs on information systems. |
| - It incurs heavily to keep up internal teams to do some | | | | In addition, organizations having internal product |
| or all of the development projects. | | | | development resources that choose to offshore |
| - There is a desire to incorporate standard practices | | | | product development projects can have the following |
| or fresh approach in the product development | | | | benefits of outsourcing: |
| processes. | | | | - Gaining new perspective & process |
| - The capabilities to find, evaluate, and hire the | | | | - Acquiring quality system reviews, and |
| outsourcing firm. | | | | - Gaining industry standard practices |
| - Methods, protocols, and resources for communicating | | | | Most would agree that firms that don't usually offshore |
| and managing the outsourcing firm. | | | | product development should periodically do so to know |
| - Tools, and plans for gaining, storing, and using | | | | how they could improve the results of their internal |
| knowledge transfer. | | | | development teams. |