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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
Independent Research Firm: Independent Software Vendors see Significant Offshore Savings That can be Re-Invested in the Business
Independent Research Firm: Independent Software Vendors see Significant Offshore Savings That can be Re-Invested in the Business

HACKENSACK, New Jersey, May 17 /PRNewswire-FirstCall/ -- Forrester Research states that "Managed effectively, firms see significant offshore savings that can be re-invested in the business." (1)

'Taking Software Product Development Offshore' was the topic of a workshop convened by Ness Technologies and featuring Forrester analysts John McCarthy and Stephanie Moore last week in Santa Clara, California. The workshop brought together representatives of independent software vendors (ISVs) to discuss issues associated with offshore outsourcing.

"Taking product development offshore is an evolution not a quick fix," stated John McCarthy, Vice President, Asia Pacific Research, Forrester Research. "Pricing pressures and the need to tap into new markets drive globalization of product development." (2)

In the presentation, McCarthy touched upon the dominance of India in IT offshore outsourcing, and stated that "The lack of sophisticated Chinese providers as well as language, IP, cost, and skill issues will keep China a distant second.

China is the only country that can potentially match India's scale, but it will take a long time and is not yet there." (1)

"Offshore captive centers (centers owned and run by independent software vendors - ISVs) have a slower ramp up, they face complexity of understanding HR, legal/tax, and political issues in low-cost countries, they do not have access process expertise of offshore players, and the set-up costs are expensive - not cost effective for less than 500 people," stated McCarthy. (2)

"Captive strategies are popular but ultimately not practical, unless the client has or wants a presence in the foreign geography, if legal or regulatory reasons compel the client to employ resources who are processing certain transactions, etc, if the client is in the IT services or high tech business, or if the client wants to be in the IT services business," stated Stephanie Moore, Vice President, Forrester Research. (3)

In a panel discussion with representatives of four of Ness' offshore clients - Business Objects, Indus International, The Cobalt Group and Micromuse - the participants said that Ness Technologies treats their offshore employees the same as they treat their onshore employees.

"Ness' Managed Labs division offers an Extended Lab approach to ISV's offshoring," said Shashank Samant, President of Ness Managed Strategic Services. "Over the past several years, our R&D extension centers with marquee ISVs (today more than 20) have created an ISV ecosystem that draws from the mutual experiences of both our ISV clients and other ISVs/platform-vendors. Ness' close association with platform owners like IBM offers an efficient and effective technology channel to this ISV ecosystem. A true industry differentiator, Ness offers a collaborative, value-added experience to ISVs in their product development lifecycle."

"By hosting this interactive and informative workshop, Ness offers a view of this unique ISV ecosystem, highlighting emerging trends in R&D offshoring, from the perspective of leading industry analysts," said Samant.

Ness Technologies provides product development outsourcing services from its three offshore centers in India - in Bangalore, Mumbai and Hyderabad - and from its outsourcing centers in Israel and Eastern Europe, where Ness has operations in the Czech Republic, Romania and Slovakia. Ness offers end-to-end business solutions designed to help clients improve their competitiveness and effectiveness, encompassing all technologies and IT services related to that process. Ness' offshore and near-shore centers house outsourced software R&D labs for independent software vendors (ISVs), as well as application development, maintenance and support for information technology and information systems organizations. Ness was recently named to Global Outsourcing 100, the International Association of Outsourcing Professionals' (IAOP) list of the world's top outsourcing service providers.

About Ness Technologies

Ness Technologies is a global provider of end-to-end IT services and solutions designed to help clients improve competitiveness and efficiency. Specializing in outsourcing and offshore, systems integration and application development, software and consulting, and quality assurance and training, Ness serves a blue-chip client base of over 500 public- and private-sector customers. With 7,000 employees, Ness maintains operations in 15 countries across North America, Europe and Asia, and partners with over 100 software and hardware vendors worldwide. For more information about Ness visit

Forward Looking Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often are preceded by words such as "believes," "expects," "may," "anticipates," "plans," "intends," "assumes," "will" or similar expressions. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Ness' actual results could differ materially from those anticipated in these forward looking statements as a result of various factors. Some of the factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in Ness' Annual Report of Form 10-K filed with the Securities and Exchange Commission on March 15, 2006.

(1) Point/Counterpoint Debate of Offshore Issues, Forrester Research, Inc., May 2006

(2) The Evolution and Governance of Taking Product Development Offshore, Forrester Research, Inc., May 2006

(3) Internal Due Diligence: Preparing to Outsource, Forrester Research, Inc., May 2006

Media contact: David Kanaan USA: +1-888-244-4919 Intl: +972-3-540-8188 Email: Investor contact: Drew Wright USA: +1-888-267-8160 Email:

Ness Technologies Inc

CONTACT: Media contact: David Kanaan, USA: +1-888-244-4919, Intl:
+972-3-540-8188, Email: Investor contact: Drew Wright,
USA: +1-888-267-8160, Email:

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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