Way to go… Outsource to the US and cut cost

K. Bharat Kumar


Chennai, Nov. 7 Offshoring to India is old hat. Outsourcing to the US is the in-thing! Yeah. You read right.

Computing and power supplies are more reliable, and cheaper, in the US. Mr Shiva Ramani, Co-Founder and CEO, Cybernet-SlashSupport (CSS), which is into technology and operations management, puts it succinctly: “We are keeping the people in India but moving computers back to the US, for, computing power and bandwidth are cheaper there.”

“Take my payroll application. It is power-intensive and hardware-intensive.” So, instead of spending on computing power and air-conditioning to maintain those servers, Mr Ramani outsources those requirements to Amazon’s S3 service that is available online. For the data his company sends and receives for nearly 5,000 employees, CSS spends a mere $10 a month for processing and storage.

“Compare that to nearly Rs 50,000 a month I would spend on purchasing and maintaining a couple of servers and on manpower deployed to run and maintain applications,” he says.

http://www.thehindubusinessline.com/2007/11/08/stories/2007110852240400.htm