“In the long run, outsourcing is another form of trade that benefits the U.S. economy by giving us cheaper ways to do things.” – Janet Yellen
What is globalisation, and how does it allow the modern business to function as well as remain competitive and turn a profit?
Globalisation: The past and the present
In a nutshell, the definition of globalisation is the “process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.”
In my opinion, there are two parts to understanding the idea of “globalisation”:
Firstly, the original concept of globalisation goes back thousands of years where people have been trading goods to each other from distant countries. Possibly the best example of the long distances that people in the Middle Ages used to travel to buy and sell goods is the Silk Road that connected China and Europe across Central Asia.
Secondly, technology has been the main driver of the modern version of globalisation. Ergo, the technological developments of the last 20 or 30 years have increased in cross-border trade, migration, and investment. For the first time, it does not matter which country you live in; there are opportunities to do business across the globe.
The rise of the Internet and high-speed connections have further increased the opportunities to trade with companies and people across the globe. For example, should you wish to contract an offshore software development company to develop an eCommerce website for you, it’s very easy to communicate with the offshore company in order to discuss the website specifications, etc.
Reasons to partner with a foreign-based software development company
There are many arguments for the outsourcing of your software development to an offshore company. Here are the most important reasons:
Companies choose to outsource their software development projects because of the savings in operational and labour costs. When an offshore software development is properly executed, it has a significant impact on a company’s revenue.
Leverage world-class technical skills
Some of the world’s brightest minds live and work in the developing nations across the globe. Therefore, by outsourcing your software development project to an offshore company, you will be leveraging a world-class, global knowledge base with the result being a product that will give you the competitive edge in the marketplace.
Focus on your core business
It is important to focus on your core business and not diversify too much; otherwise you will end up diluting your efforts; thereby, losing your focus and competitive edge in the marketplace.
Re-engineering existing business processes
According to the BusinessDictionary.com, the re-engineering of existing business processes is the “fundamental rethinking and radical redesign of business process to achieve dramatic improvements in critical measures of performance such as cost, service, and speed.” In other words, the offshore specialist software developers will brainstorm ways to improve your existing business processes in order to give you an edge over your competitors.
It cannot be disputed that the primary reason for you to be in businessis to make money. Therefore, it is worth contracting your software development project out to an offshore software development company!