software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, December 20, 2005

Predictions of valuable software outsourcing India

According to a report India's Information Technology Outsourcing and Business Process Outsourcing (BPO) services industry could be bringing in US$60 billion by the year 2010, growing at over 25% a year. In product of Software outsourcing development, companies have started to establish niche.

Overall prediction in Information Technology Outsourcing market out of India will grow to $8 billion by the year 2008. Today, India’s reputation to do product development and move up the value chain is getting established. True strength of India is the fact that it has a strong and growing pool of young high-end technical talent. Several large companies setting up their Development centers in India have proved this. It will provide India a long-term play in this space. Software product Outsourcing (SPO) is emerging rapidly and is likely to be among the fastest growing segments of Information Technology Outsourcing to India in the next few years.

According to a report published by, Research and Development (R&D) Outsourcing market for Information Technology in India will be estimating to grow by $9.1 billion by 2010 from $1.3 billion in 2003, at a compounded annual growth rate of 32.05 percent.

Business Process Outsourcing Industry is currently seeing a boom in our country. While it is creating some perceptions that India is a low cost- low value destination, we see the BPO boom as a means to create an ‘India’ brand in the western markets. If we can able to build on this and change perceptions by delivering high quality which we are doing, this exposure can be used to engage with the same customer for high-end work.

Software Outsourcing

Software Outsourcing India and services exports were less than $18 billion in the fiscal year ended March 31 2005, which rouse by nearly 35 percent from the previous year, the total addressable market for global Offshoring is near by US $300 billion, of which US $112 billion will be Offshored by 2010. By 2010 the Indian Information Technology Outsourcing and Business Process Outsourcing services industry could directly employ 2.25 million people, besides providing indirect employment to more than 6.25 million workers.

A large number of multinational technology and user companies are stepping up Outsourcing to India. Microsoft Corp. announced last week that it would increase its staff in India from 4,000 to nearly 7,000 workers over the next three to four years.

Software Outsourcing is big business, generating global revenues more than $298 billion in 2003. Outsourcers reap gross margins of 25% to 50% on projects sent overseas. A contractor typically pays between $11.75 and $16.50 per hour, including benefits, to a computer programmer in Mumbai, India, and charges its American client between $18 and $25 hourly for that worker. Software Product Development in IT is a rapidly growing market that is turning India into a destination to Offshore Outsource high end applications is clearly visible with the space and time keeping into account.