Business Intelligence

An organization can be defined as a collection or grouping of humans working in coordination with each other without breaking link with the external environment (Weick, K). Classically, the structure of an organization addresses the issues of breaking down of a task into sub-tasks, allotment of teams to sub-tasks, coordination among the teams and exercising supervision These issues can be handled in a number of ways (Mintzberg, H).

The organizational structure has a close dependence on the type and strength of teams, goals of the organization and the technology used. The guiding parameters for an organization’s structural design are the number of management levels, level of delegation, staffing, reporting, linking and control mechanisms (Nadler and Tushman). We will focus our discussion on the dependence of organizational structures on Information Technology.

Information Technology has a telling effect on all the design parameters of classical organizational structure. Physical proximity of the task groups is no longer a requirement for the purpose of supervision. Other design parameters like, linking and control mechanisms have been automated (Rockart and Short 189-219). Information Technology has led to enhanced mission effectiveness through thoughtful adaptation of organizational structures. Multi-layered managerial tasks, as existent in classical organizations, have been thinned owing to electronic mailing, especially where administrative matters are concerned (Lucas and Baroudi 9–23). Enhanced reach of managers over a larger number of work groups has improved managerial efficiency by many folds. Automation of manufacturing processes has led to production automation, as is evident from financial industry (Lucas and Baroudi 9–23). Electronic linking has resulted in better interaction between the manufacturer, supplier and the customers (Venkatesh and Vitalari 1687-1706). Electronic linking has removed the geographical boundaries between the various work groups with in the organization and between the organization and the external environment. Now work groups can be easily formed and coordinate to achieve the ends. Electronic data interchange (EDI) between the manufacturer and the supplier has strengthened their integration, thereby involving the supplier in the organization’s manufacturing process.

Traditional organizational structures require being flexible and adapting to the new technology that offers expeditious interaction via quality information sharing. Thus the organizations should organize to derive optimum benefit from Information Technology.

Robert II Smith

Automation, improvement and speed, these are certain points that defines the superiority of software development today. Outsourcing software development is a kind of outsourcing in which the jobs of software development are transferred to offshore countries like Belarus. With increasing competition and demand of effectiveness and speed, software development processes are getting more sophisticated with the combination of trusted old and swift advance technologies. Mainly companies in USA and Europe transfer software development job to Belarus, Russia or other Asian countries. And in order to stay class apart and favorite to their customers, more and more companies are thinking of outsourcing software development meeting closely what their highly particular business requires. Some of the ultimate benefits and advantages of outsourcing given here can definitely boost up your belief in outsourcing.

In Belarus offshore software development has some advantages and also some disadvantages.

Advantages of offshore software development in Belarus

Cost factor enjoys being the foremost and preferred reason for the fame of software development outsourcing. Start up companies prefers to invest least amount of money as they have to set up many things at their infancy to grow up. Thus, outsourcing clicks them at the first moment. It will not only help them grow financially while saving money through outsourcing but also give access to modern infrastructure and skilled manpower. Outsourcing software development in Belarus resolves this problem. Along with the cheap labor Belarussian software professionals are so skilled and high mental level persons. This is the main reason that the US and Europe companies transfer their jobs in Belarus. By offshoring their jobs the companies will save a lot of money (around 60%). In US the average salary of software developer is $21000 per year. In Belarus the salary of software developer is too less in comparison to US or Europe.

Superior quality, affordable prices, assured winning results, what else a company needs to stand out in the market. Credited to these benefits, offshore outsourcing is proving outstandingly money-spinning for companies that are making use of it.

Disadvantages offshore software development in Belarus

There also some disadvantages of offshore software outsourcing in Belarus. Many outsourcing business fail due to business misunderstanding. Usually new companies are unable to understand the process of outsourcing software and fails before grow.

Offshore software development industry in Belarus is still new, young and largely unproven. However there are also lots of success stories which prove Belarussian offshoring is best.

Another disadvantage is that outsourcing in Belarus can also prove to be a threat to the security and confidentiality of issues of a company. If company is outsourcing business process such as payroll, email accounts or social numbers, confidential information such as salary will be known to the outsourcing service provider. Therefore one must be very careful and precise in choosing which business process to outsource and which one not.

Software outsourcing may also result into the possible loss of flexibility in reacting to changing business conditions, lack of internal and external customer focus and sharing cost savings. Loss of internally generated talent is yet another problem associated with the outsourcing as it may hamper the growth of an employee by depriving him from the experience he would have gained by handling the business issue himself then by passing it over to some other external party.

Vagner David