Posts Tagged ‘Offshore’
December 8, 2011 | 
Author Post by Daven Michaels
Details technology outsourcing has emerged to cater for the requirements of many companies globally. Numerous companies seek to minimize the price that they would have to incur by operating large IT infrastructure, and engaging skilled IT pros for computer software development and upkeep. Today, a substantial number of international aid agencies, universities, tiny, medium and huge businesses have opted to outsource their software management processes to offshore IT outsourcing service providers. Countries such as India, China and the Philippines have gained worldwide recognition on their vast skilled IT manpower which has observed them ably take up and manage huge software outsourcing centers.Difficult economic occasions in their home markets as well as elevated competition and the profit expectations of shareholders has noticed numerous businesses seek out the software program services of offshore IT outsourcing service providers. When a company is has a software program management department in house, it is solely responsible for getting a hold of individuals willing to do the work, do the resource planning and make certain projects are completed as per expectations. However, when software program development and management is outsourced offshore, access to a cheaper workforce makes the entire approach that significantly less expensive. For instance, in India there are more people graduating in IT and software degree, diploma and specialist courses than in the US and Western Europe combined. This crowded job market place automatically depresses wages. Prior to a business resorts to seeking the services of a third-party offshore IT outsourcing computer software service provider, it should cautiously weigh the impact of such a selection on its overall achievement as an organization in meeting its goals. At the top of the list, the organization should assess the service provider’s know how, understanding of software development trends and the methods applied in the computer software development lifecycle. Even though language could not be as essential in software program development as it is in call center services, it is nonetheless crucial to make certain that menus, commands and software program text is in suitable spelling and grammar.Information security is one more important consideration when outsourcing computer software. Does the offshore IT outsourcing company provider adequately safeguard the details in its custody? Breach of confidential records would have main repercussions on the organization and can lead to loss of clients and expensive lawsuits from aggrieved clients. The service provider should clearly demonstrate the specific actions they take to protect information. There should also be channels for communication if the info ever ends up in the incorrect hands.
About the Author
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Offshore Currency Risk
(PRWEB) July 7, 2005
International commerce has rapidly elevated as the web has provided a new and far more transparent marketplace for individuals and entities alike to conduct international business and trading activities. Significant adjustments in the international economic and political landscape have led to uncertainty concerning the direction of foreign exchange rates. This uncertainty leads to volatility and the require for an powerful automobile to hedge foreign exchange rate risk and/or interest rate adjustments while, at the exact same time, effectively ensuring a future monetary position.
Each and every entity and/or individual that has exposure to foreign exchange rate risk will have specific foreign exchange hedging needs and this internet site can not possibly cover each and every existing foreign exchange hedging circumstance. As a result, we will cover the much more common reasons that a foreign exchange hedge is placed and show you how to properly hedge foreign exchange rate risk.
Foreign Exchange Rate Risk Exposure – Foreign exchange rate risk exposure is frequent to virtually all who conduct international business and/or trading. Buying and/or selling of goods or services denominated in foreign currencies can instantly expose you to foreign exchange rate risk. If a firm price is quoted ahead of time for a contract using a foreign exchange rate that is deemed proper at the time the quote is given, the foreign exchange rate quote may not necessarily be proper at the time of the actual agreement or performance of the contract. Placing a foreign exchange hedge can help to manage this foreign exchange rate risk.
Interest Rate Risk Exposure – Interest rate exposure refers to the interest rate differential between the two countries’ currencies in a foreign exchange contract. The interest rate differential is also roughly equal to the “carry” expense paid to hedge a forward or futures contract. As a side note, arbitragers are investors that take advantage when interest rate differentials between the foreign exchange spot rate and either the forward or futures contract are either to high or too low. In simplest terms, an arbitrager may possibly sell when the carry price he or she can collect is at a premium to the actual carry expense of the contract sold. Conversely, an arbitrager might acquire when the carry expense he or she might pay is much less than the actual carry price of the contract purchased. Either way, the arbitrager is seeking to profit from a tiny price discrepancy due to interest rate differentials.
Foreign Investment / Stock Exposure – Foreign investing is considered by many investors as a way to either diversify an investment portfolio or seek a bigger return on investment(s) in an economy believed to be growing at a faster pace than investment(s) in the respective domestic economy. Investing in foreign stocks automatically exposes the investor to foreign exchange rate risk and speculative risk. For example, an investor buys a certain amount of foreign currency (in exchange for domestic currency) in order to purchase shares of a foreign stock. The investor is now automatically exposed to two separate risks. Very first, the stock cost might go either up or down and the investor is exposed to the speculative stock cost risk. Second, the investor is exposed to foreign exchange rate risk due to the fact the foreign exchange rate might either appreciate or depreciate from the time the investor first bought the foreign stock and the time the investor decides to exit the position and repatriates the currency (exchanges the foreign currency back to domestic currency). For that reason, even if a speculative profit is achieved simply because the foreign stock price rose, the investor could truly net lose cash if devaluation of the foreign currency occurred although the investor was holding the foreign stock (and the devaluation quantity was greater than the speculative profit). Placing a foreign exchange hedge can help to manage this foreign exchange rate risk.
Hedging Speculative Positions – Foreign currency traders utilize foreign exchange hedging to shield open positions against adverse moves in foreign exchange rates, and placing a foreign exchange hedge can help to manage foreign exchange rate risk. Speculative positions can be hedged through a number of foreign exchange hedging vehicles that can be used either alone or in mixture to generate entirely new foreign exchange hedging strategies.
John Nobile – Senior Account Executive
CFOS/FX – Online Forex Spot and Options Brokerage
Post Source: http://EzineArticles.com/
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