software outsourcing

A blog related to software development company and offshore software outsourcing

Monday, April 10, 2006

The Offshore Outsourcing history

The idea of Offshore Outsourcing has its basic roots with competitive advantage theory for country like India. The meaning of Offshore Outsourcing has been undergoing several changes since long years. As shifting of manufacturing process to nations that provide cheap labor during Industrial Revolution had take new connotation for scenario of today by starting off. In today’s globe IT has became the backbone of businesses organizations thought out all the industry.
Offshore Outsourcing' is the process by which an organization hands over part of its work to other organization, which makes it responsible for the purpose of design, development and implementation of the business enterprise process under some strict notifications regarding needs and specifications from the Outsourcing firms. It would be beneficial to both the outsourcer firm and the vendor, as it gibes chance to the outsourcer to cut costs and increase quality in non core areas of enterprise and utilize the expertise and competencies for the maximization and now we can see the benefit to the Software Development service organizations in India.
During the year 1990, when the globalization started in India with governments have started programs liberalization and privatization of economic reform. In year 1994, the government had announced an encouraged policy for the sector of liberalized and private participation. With the New Telecom Policy in year 1999 bring further changes with the IP telephony introduction and that ended the state monopoly on international calling facilities. Although, the India Software Development industry has existed since the year of 1981, but it has taken some years to emerge as offshoring industry until mid 1990s.

Offshore Outsourcing Services

Look at the first of Offshore Outsourcing services provided by the Indian was in medical transcription, but offshore of business processes such as data processing, billing, and customer support began after the nineties. With the success of Indian Software Development industry, the central government identified Business Process Outsourcing as a key contributor for economic growth prioritized the attraction of Foreign Direct Investment in the segment of establishment of Software Development Technology Parks and Export Enterprise Zones.
The Offshore Outsourcing industry is a young sector in country of India and has been in existence for just more than five to six years. Despite recent arrival of the Indian scene, the industry has grown phenomenally and has now become a very important part of the export oriented Information Technology environment. The initial movement of industry began as an activity confined for MNC’s, but today it developed with a broad based enterprise platform backed by leading Indian Offshore Outsourcing in IT and software services.