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enter As information technology responds to leadership demands to “do more with less,” the appeal of utilizing offshore services is alluring. Businesses are increasingly looking to foreign resources to augment and, in some cases, even supplant domestic IT efforts. The potential benefits of lower costs, higher quality, and “follow the sun” development to gain faster delivery of projects offers a compelling case for offshore services.
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In a world of increased competition, organizations increasingly are turning to support as a way to achieve long-term differentiation for their products and services. Customers often see as much or more value in the support that an organization offers as a part of its products and services than in the products and services themselves. Best-in-class support organizations confirm that the optimal way to master support is to achieve success initially from within the organization, and then expand these efforts outward through the distribution channel and ultimately to their customers.
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Whatever the current trend in information technology and business processing outsourcing, the key issue confronting lawyers representing customers remains the same — how to allocate the costs and benefits that will result from changes to the outsourcing relationship over time.
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Just a few years ago, businesses viewed outsourcing as an opportunity to gain a competitive advantage from business processes enhanced through the strategic application of information technology. Corporations invested significant resources and expected substantial returns. Vendors, for their part, envisioned healthy margins and long-term revenue streams, and committed themselves to delivering the best skills and the latest technology innovations to their clients.
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Application outsourcers use quality certifications as a key competitive differentiator. Enterprises must understand what these certifications mean and how vendors’ internal processes have been strengthened by them. The growing use of offshore service providers (predominantly in India) for mainstream application outsourcing deals is changing the competitive landscape. Most large Indian external service providers (ESPs) emphasize their credentials by pointing to their superior quality certification.