HomeShoring: An Alternative to Offshoring

HomeShoring is Aelera's U.S.-based alternative to offshoring.

By leveraging lower-cost application development and business processing outsourcing centers in smaller U.S. metro areas, Aelera completes projects 20% to 30% below standard industry rates, particularly for development projects that take less than 12 months.

What's wrong with offshoring?

Conventional wisdom holds that low labor costs in India, China and the Philippines translate into 40%-plus savings for application development and technology support services.

Many large technology services firms are acquiring offshoring firms and entering partnerships to quickly build offshoring capabilities.

The math seems simple: a U.S. software developer with a master's degree may earn $80K per year while an Indian equivalent may earn $50K.

However, in the haste to leverage labor arbitrage, senior management and technology executives are finding hidden costs and differences in operating models which significantly alter cost expectations. In addition, serious problems with knowledge transfer, quality controls, cultural differences and employee turnover add costs and extend timelines. Additionally, negative backlash such as customer loss and employee morale has proven to negate expected offshore project costs. Outsourcing IT: Over Here vs. Over There - The Promises and the Perils research report is available upon request.

How HomeShoring works

Aelera delivers significant savings by combining solution teams using a proven methodology with delivery centers in smaller metro areas where talented, motivated technical professionals readily trade lower wages to do challenging, interesting work in premium lifestyle cities such as Savannah, Georgia.

Minimal travel, labor, training and project management costs result in lower costs for clients and a proven methodology shrinks delivery cycles while negating the multiple potential problem areas associated with offshoring.

For more information on Aelera's HomeShoring approach, contact Aelera via email at info@aelera.com or 770.751.3500.