software outsourcing

A blog related to software development company and offshore software outsourcing

Saturday, January 21, 2006

India Software Development and Competition

India Software Development is facing lots of competition worldwide in Information Technology Industry. At present Indian IT market is on the boom worldwide and most demanded one also. India is the country which is preferred the most for the software development and IT problem solutions. India is the country which has the pool of the talents who are ready 24*7 to serve the needs and demands of the Information Technology worldwide. Indian economy also got improvement as the name of the country’s IT industry became popular globally for services and problem solutions. More and more Foreign Direct Investment in the country helps in improving the economy of the country. More and more local companies are also coming into existence in the field of Information Technology in the country. As the name and fame of the country are growing higher and higher, more competition it faces. India Software Development is the most competitive name in the market of Information Technology worldwide.

India Software Development is the one which has played the major role in the business trend of Information Technology. More and more foreign countries are now getting attracted towards Indian talents for IT solutions. The main reason behind this much popularity of the country is the lower labor rates and the overall cost cutting advantage it has. Indian companies are now up against the competition from the MNCs who are entering into the market having the both price advantages and ability to offer services from more than one location. No. of MNCs such as Accenture, IBM, Unisys and many more are setting up the service operations in India to take the advantage of skilled manpower and lower cost of the production and posing competitions for the India Software Development companies. In the past these companies used to avoid the contracts, but now they are also bidding for the contracts which require the entire process of the services to be done from overseas locations. These MNCs overseas service seems to have decided to accept the lower profit margins to gain the market share of India Software Development, though their initial investment is so high.

India Software Development

To pose the challenge for India Software Development, MNCs are now giving lower price than the local Indian companies. With the increased scale of the overseas operations of MNCs, their costs of the services have dropped. Countries like China and other countries are also creating the problems for the Indian Information Technology industry. They have literally crashed the market of IT by the lower labor rate. One thing is also true that the quality is also of lower level as the price goes down compared to India Software Development.

India Software Development at present facing lots of challenges worldwide regarding the price and manpower. More and more entrance of the MNCs in Indian market making local companies face the challenges and also creating problems by the process of brain drains. But still the demand of the India Software Development is as it was globally, though the competition is rising.