SaaS and Offshore Development
Because of changing software licensing models, software vendors are facing increasing competitive pressure when building their core businesses. The reality of shortened product cycles often forces them to rush the introduction of new products. Economic realities also force them to maximize their resources for critical tasks while at the same time reducing back-office costs. Many companies are finding it increasingly time consuming and expensive to develop and implement their IT infrastructure, locate and maintain limited technical resources, and control IT costs.
Software-as-a-Service or SaaS is the answer to such challenges. Instead of purchasing software and subsequent upgrades and expending resources on technical training and infrastructure, SaaS provides a better alternative. Because SaaS is subscription-based, routine upgrades are included in the terms of subscribing and Service Level Agreements ensure needed services and support within the framework of a fixed budget.
Subscribing to SaaS provides the following benefits:
- Management can focus on core business instead of IT and allow them to allocate their budget to customers and other revenue producing activity.
- Less cost. The total cost of using an on-demand software package can be half that of implementing and managing an on-site solution.
- Businesses using Seas often realize results in weeks rather than months because the web-based software, hardware and infrastructure are already in place and tested
- Incremental application enhancements and releases are supplied via a subscription.
- Flexibility of scalable business solutions without the need to upgrade or replace outdated equipment.
- Appropriate levels of service and support.
- Superior security and back-up/recovery services.
Cloud computing provides what IT has always needed: a reliable approach to expanding capabilities and capacity on the fly. Most importantly, it allows for this to occur without the expense and time consuming task of acquiring new software licenses, adding new infrastructure, or training and retraining. This approach ensures consistency and predictability that enable businesses to guarantee the security and service often difficult to previously provide in a cost effective manner. There can be no doubt that cloud computing is a growing trend with no limits in sight.
Offshore development and outsourcing has evolved from its beginnings as merely a cost-cutting tactic to a successful business model for cost effective, highly efficient and technologically advanced business expansion. The trend of offshore development crosses all political, language and cultural barriers to provide high-quality service coupled with a decided cost-advantage. A business gets greater value for its money by looking to offshore. Such development is a highly cost-effective solution due to lower costs and ready access to skilled resources.