software outsourcing

A blog related to software development company and offshore software outsourcing

Monday, July 04, 2005

Software Outsourcing

In 2004, 75% of the US companies did software outsourcing of all or some part of their information technology work. And with software outsourcing booming, in the year 2005, that will increase. This was mentioned in a report on outsourcing and offshoring by Horasis and Going Global Ventures. Out of those 75% companies only 32% companies have done software outsourcing to offshore and half of them have cut their full time jobs.

Software outsourcing to India

For software outsourcing, India is the most popular destination. And it will remain leader in the year 2005 too. But according to the report China will be the leader in next ten years. This report also rank countries base on their risk, costs and opportunities for software outsourcing for now and also for the future. This report was compiled by Frank Jrgen Richter, president of horasis and Mark Minevich who is international strategic advisor and principal at Going Global Ventures. Going global is US based consulting and venture advisory firm while, Global visions community is a geneva based strategic advisory firm. Software outsourcing is a very hot issue because of fears of job loss. Because of that there is high oppose to it politically as well as by some organizations. But costs saving is such a huge that, corporates are going to work on this strategy. But corporates need to look at benefits, cultural difference, costs saving, risks etc. for each country.

Report mentions that, currently India, china, costarica, Czech Republic and Hungary are the top 5 destinations for software outsourcing. But in 2015, China, India, US, Brazil and Russia will be the top 5 countries for software outsourcing. Report was prepared using two different indexes - glbal outsourcing index - GOI and future outsourcing rank FOR. The GOI index is made up of cost of doing business in each country, risks associated with it and market opportunities. While future outsourcing index was made up of assesses the long term competitiveness of the top 30 future outsourcing countries.