software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, May 05, 2006

Offshore Software Development does not put jobs at risk

Offshore Software Development does not put jobs at risk according to the experts. In IT Industry the development trend is changing as companies prefer more to take the help of IT Outsourcing service providers. Because of that the local market is paying the price. But this rumor is not true. No doubt that Offshore Software Development is replacing the in-house services and IT companies now seek more overseas service providers. The main reason behind this stuff of the company is to cut the cost of the development of the software. In US and Australia the development cost is around five times higher than it is in India or China. In these countries talents in the IT Industries are working for almost the lowest labor rate. Because of this India and China has been the IT Outsourcing giants.
US and Australia based IT companies prefer India and China for lower labor rate and sending the development job work to these continents. But because of this attitude the local talents are loosing the job in their own countries. Lots of protests have also taken place to oppose this attitude of the IT companies in these companies. Local talents and professionals think that they are loosing jobs and work because of the company’s attitude of sending development work to the cheap labor destinations like India and China. But this is not true. Companies are also giving the same opportunities to the local talents also. Still the main point remains the of the higher development cost.

Offshore Software Development services

As far as companies concerned they state that Offshore Software Development services are very much useful to them as they can save lots of cost. They also argue that the cost saved by IT Outsourcing services are invested in new businesses in the country and talents and professional are given open sky to perform and show their knowledge in those areas. Companies involved in Offshore Software Development just want to expand their market globally by Software Outsourcing services. They also argue that it is fact that services in India or China are quite cheap and they provide the qualitative services. They also get the flexibilities and can focus on them main aims of the business.
They also argue that they are not leveraging Offshore Software Development as a head-cutting resource, but they want to be competitive in the market. And with the higher development price in the local market they can’t be competitive. So they are shifting the IT Outsourcing services. They can also increase and decrease their pool of talents as required by this business development way. For such Offshore Software Development companies are doing the front-end coding at home and send the back-end coding services the overseas destinations. This alternative helps them reduce the cost of the development and also provides the faster development services.
Though, IT Outsourcing is not that much hurting the local talents, but they should also think about the development price to the market. Companies are right at their end for the selection of the Offshore Software Development. But they should also put more efforts to provide more opportunities for the local talents.