Cost and quality fuel offshore outsourcing

Lower costs and better quality are the most common reasons why UK-based companies outsource development projects to offshore facilities, rather than an inability to source staff.

A study of IT staffing decision makers from 93 leading UK companies commissioned by offshore resourcing specialist Silverline Technologies found that two thirds of respondents have considered using offshore resourcing for IT requirements.

Users rate new software developments, in particular web-based projects, well ahead of projects involving customisation of packaged software, maintenance of existing applications and legacy transformation.

"Traditionally there's been a lot of cultural resistance to the idea of using non-local employees," said Albert May, chief executive of Silverline Europe.

"However, perceptions are changing and the skills shortage, exacerbated by the fact that people in the UK don't have the right skills, is driving demand for offshore resourcing," he added.

Some users still have negative experiences of offshore resourcing, however, including communication problems, a lack of understanding of the customer environment and extra overheads associated with developing relationships.