November 2, 2016 4:38 pm | Updated 5 years ago.
Offshore outsourcing was initiated with the primary objective of saving cost from the IT budget of organizations. Offshore outsourcing initiatives generally focus on the following key issues. They are-
- cost effectiveness
- offshore processes related to knowledge transition, knowledge retention and overall knowledge management
- security aspects to ensure the protection of competitive and confidential information relating to enterprises and finally
- Strengthening of offshore processes to improve quality of delivery, adherence to schedule and SLAs, change management and program management
Along with constant changes in the business environment, technology, and increasing competition outsourcing vendors and clients keep on innovating new means to stay afloat. One such initiative is the Bitcoin or Cryptocurrency. Bitcoin is one of the most important aspects of IT offshore outsourcing in today’s world. Bitcoin is a virtual currency and payment system which enables payment between two parties directly without an intermediary. The transactions are recorded in a publicly distributed ledger called the block chain. Bitcoin is slowly getting a foothold, primarily because transaction fees are much lower than service fee of the payment gateways like Paypal of the Bank charges for money transfer. The bitcoin transaction costs range from 0 to less than 2%.
IT offshore outsourcing vendors and clients are both embracing this decentralized digital currency. One of the foremost examples is that of IBM and its customer the Bank of Tokyo jointly took a decision to initiate the blockchain technology to automate business processes between the two companies. This innovative step will explore the benefits of using the block chain methodology in IT Offshore outsourcing deals. They also envisage on launching this technology sometime early next year.
Advantages of block chain in IT Offshore Outsourcing:
- Increase in efficiency – As offshore outsourcing companies constantly experiment on smart contracts, block chain will digitize every component of a contract for IT outsourcing deals. It will revolutionize every aspect of SLA (service-level agreements) .A block chain enabled SLA management system will bring in efficiency, speed, and accuracy to the entire process. Smart contracts also give enhanced security to both the concerned parties. As more and more organizations will gradually harness the benefits of the block chain, quality standards, and maintenance issues will be looked into critically. IT Offshore outsourcing vendors can leverage cost effectiveness, improved knowledge management along with improved quality of delivery and better management.
- Useful for multi-vendor approach – The blockchain technology would prove useful in complex multi-vendor IT offshore outsourcing. In a process where many vendors are responsible for a single outcome, blockchain will help keep a track of the entire system. Once a supplier uploads his data all the people in the system will have a copy of that record. This will bring in transparency to the entire process.
However, IT offshore outsourcing companies are yet to leverage the benefit of the blockchain. As companies adopt digital transformation Bitcoin and blockchain will gradually gain prominence. Commercial organizations are developing software’s that have been inspired by blockchain. Microsoft Visual Studio is making the Ethereum Solidity language available to application developers.D2e D2E’ Aggregator platform has a number of specialty vendors that focus purely on IT offshore outsourcing to provide innovative solutions leveraging current advances in technology for the customers.