software outsourcing

A blog related to software development company and offshore software outsourcing

Monday, April 03, 2006

Market for IT Outsourcing

Number of leading analytical agencies last year in their lists of the international leading markets for IT Outsourcing but, few years ago it was hard to foresee the nation receiving such lime light. Over the last three years the average growth rate among Indian Offshore Software Vendors has been more than 35 per cent. International analysts recounted that it is a major step forward the marketing of services provided by India based export oriented Software Development firms . Year 2005 was marked by $1 billion of market volume and with that it can expect the 35 per cent growth trend to continue into this year as well. And even some of the organizations have performed too well in the IT Outsourcing sector.
If one wants to see the example of Russian IT Outsourcing industry, every third Russian organization has a sales & representative office in America or Canada. With one third of Software Development vendors have sales offices in different parts of Europe. With improvement in foreign perceptions of India the credibility of Russian IT Outsourcing organizations is on the global market and is increasing day by day allowing them to participate in tender lists. There is another sign of international recognition, that is number of India Offshore Software vendors have either been acquired by another larger organizations or invested by a third party.
The typical of the organizations is specialization in some of applied fields and close, focused ties with a limited number of customers. Despite the interesting correlation between risks and returns, the approach of company often results in being acquired by a strategic customer. The third group of organizations follows the Russian way of trying to increase sales in the International market.

IT Outsourcing personnel

Results in highly qualified IT Outsourcing personnel by most Indian Information Technology employees hold masters or specialist degrees. One can forget the outsourcers for repeating a work, large Software Projects that made in India, urgent in U.S, however low prices and under-developed IT Outsourcing infrastructure leads to smaller return on investment than other approaches. Indian possesses a unique intellectual capital and that is known for its resource pool of well-educated talented personnel, so that is constantly increasing in terms of quantity and quality.
It suggests that the effectiveness of programming in software development project is managing of skills, which belongs to American external service providers. India will be seeing more and more Software Development tasks with weight on Research and Development, entrusted to overseas companies. Indian outsourcers are known overseas, increasing turnover of 21 percent to 99 percent per year, though it is still debatable whether this growth results from the quality of services or the small size of the IT Outsourcing Organizations .