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Thursday, October 06, 2005

Outsourcing trend

Above 53% of the silicon valley software companies are doing software outsourcing. According to the survey above 50% of the total outsourcing jobs are going to India according to survey performed by Santa Clara University. India has work force which is well educated and speak English. So it becomes an ideal place for software outsourcing. Although, India is the leader in offshore software development, other countries like China, Russia and Philippines are also emerging along with some east european countries. China has captured 8% of the outsourcng while other asian nations got 11%.

Although outsourcing has become flavour of business today, sectors like manufacturing are decreasing. 39% of the manufacturing companies mentioned that they outsourced their manufacturing operation during the last 3 months which is down from 48% two years back. Major drops are in semiconductor and electronics business. It is expected that this trend will increase in manufacturing jobs.

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