software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, February 07, 2006

Offshore Outsourcing business in India

Offshore Outsourcing business in India is expanding not by the day, but in minutes we can see the outsourcing industry gaining momentum success. Accenture, the consultancy and Offshoring Company announced India as most active developing market in Software Development, playing a key role in international delivery model and network.

The American based global Information Technology services and solutions companies, plans to invest Rs. 810 million to expand its operations in India, including its human resources, over the next five to seven years. During the expansion plan, that includes setting up of India Software Development centre, which will be in addition to the existing international services centre in city like Bangalore, with 150 IT Software professionals. This organization also has long-term partnerships with NIIT and Tata Infotech for Information Technology and business process outsourcing services by Offshore Outsourcing process.

Unisys Software projects across the verticals and horizontals, including banking and financial services, transportation by airlines, government, public sector and media partners have collectively more than 500 people dedicated workers in their segment for these software projects.
Chairman of Accenture, who was on a visit to India, said that the growth had been so rapid that the organization doubled its size of workforce to 11,000 in the past year. The Indian Software employees today constitute 10% of the 1, 06,000 workforces through out worldwide and it might move in internal functions for India, like Human Resource, knowledge management capabilities and financials. He also said that it continues to see demand and will leverage the talented people here in India to expand the operations for Offshore Outsourcing process.

Software Outsourcing

Along with the rise of headcount in the segment he also added that BPO operations have risen in the past few years. Business Process Outsourcing gives great opportunity for vertical expansion as it is fast expanding sector. Apart from India Software Development center, is the most aggressive growing; centers in the Philippines and China which are growing rapidly as well. Still they lack aggressiveness as India Software Development is producing in its own region and center.Further he added saying, the areas where there enter for making deals receives only 2% competition and they bag around 87% of them. These deals are in SAP and Oracle-based programming solutions and are $1million to $25 million in size. The revenues of the organizations last year were more than $13.7 billion out of which 35% was contributed by Offshore Outsourcing and the remaining by consultancy.

The fledging Offshore Outsourcing India industry is poised to grow more than 50 percent in year 2006 as the country's IT industry continues to impress the global market with its low-cost, high quality service in Software Development. According to a study by India's Software Offshore Outsourcing, it will continue to grow and will bring in $22 billion in revenue in the coming three years. There was fear of election, John Kerry he would have pulled the plug on Offshore Outsourcing. After re-election, India's offshore organizations survived a major scare and now at least for another four years, India's Offshore Outsourcing industry looks secure.

The study said the cost savings from Offshore Outsourcing would create an additional $30 billion per year in new investments for U.S companies. It also says that up to 15 percent of Information Technology jobs required by American based organizations will be performed in India by 2010. By then, the Indian IT labor force will be more than 3 million, and half of the workers will be performing jobs for American organizations. The Indian firm is delivering high-value, low-cost services. While Indian providers struggle to understand all the intricacies of the United States and European markets, a focus on process, quality, and low cost will make them hard to beat in the long term Offshore Outsourcing market.