software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, March 07, 2006

India is getting leadership in IT Outsourcing & BPO Industries

The Indian IT industry is on the boom as overseas contracts and business deals are catching up fast in the global ring. In the last decade, the IT and BPO industries have seen considerable doing well in overseas dealing. The figures indicate that India is getting leadership in IT Outsourcing and BPO Industries. It is also marked that country has been the leading and dominant destination during this time period. Country at present accounts for almost 60-65% of the worldwide industry in Offshore Software Development and 43-46% in Business Process Offshoring (BPO) industry. It is also marked that country’s overall global IT Outsourcing market continues to grow fast, as the more and more companies are adopting the best possible combination of the services.

Research also suggests that Software Development India is on the rapid growth for both IT and BPO industries. Companies from the house of India have enough potential for each service line. It is also marked that more global market for overseas services is now shifting towards traditional IT outsourcing service lines such as hardware maintenance, software maintenance, network administration and other services like help desk. It is also marked that global BPO industry is equally sizeable and could enlarge by more than 10 times from its current range.

India at present is on the top for IT and BPO services. This leadership is on the basis of some advantages like skilled and talented manpower, reforms in telecom services, continue growth in the domestic IT industry which is also helpful in enabling infrastructure. Country’s overseas industry has proven to be significant economic growth that has helped the country in one or more ways.

Challenges for IT Outsourcing

Inspite of all these benefits country is facing some of the challenges for IT Outsourcing. Country’s is facing the shortage of talented and skilled workforce. Moreover, union and political opposition to offshoring grows in the country. It is found that companies in Europe and North America are growing more cautious of sending no. of IT jobs to India as a part of IT Outsourcing. Country is also required to improve the quality and skills of its workforce. Though the talent from the country is very much comfortable with English language but they are still lacking behind in languages like German, Japanese, and Spanish. Another challenge for the country is the urban infrastructure. All these seem to be the challenging tasks for the country.

Country should aspire to maintain its current leadership by assisting the growth of the offshore market. It should also concentrate on maintaining its current market share in the heavy competitive scenario from other low-cost destinations for Offshore Software Development. India is main destination for many companies from Australia and America, but pitfalls described above might pose some problems for the country’s IT Outsourcing services in the future if not taken care off properly.