software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, May 09, 2006

Offshore Software Development threat is on the peak for IT developers

Offshore Software Development threat is on the peak for IT developers in the countries like United States, Australia, United Kingdom and many more. UK professionals and developers working in Information Technology industry say hardware maintenance and Software Development including upgrade projects and application development are probable to lose their job because of the increasing trend of Offshore Outsourcing. IT companies from these countries are looking towards the Offshore Software Development services as the local development cost is too high for them. Higher local cost of the country leads them to seek for the overseas service providers.

Offshore Software Development Services

In these countries Hardware Outsourcing is also on the boom. Along with it Software Development seems to be the next most probable export – astonishing presenting that the activity is more likely to be sent to the overseas location because of the lower development cost. Countries like India and China has been the more frequent visit for these companies for Offshore Software Development services. These countries have also been the suitable for them as the development cost in these countries are almost 4 to 5 times less. According to the experts application development still rates amply in the Offshore Outsourcing stakes. In spite of this many businesses are now experiencing real advantages from developing a co-sourcing and long-term relationship with service providers who are able to manage infrastructure issues as well.
These companies are finding a real, additional advantage available with the overseas development services. Another advantage to the companies is to link their application development / management development jobs with process outsourcing and infrastructure management facility and services. Experts says that the savings from such overseas help could considerably get increase a company’s competitive advantage and image in the market.
Moreover companies are finding almost 50% growths in Offshore Outsourcing. In the present scenario the market of Offshore Software Development is on the expansion stage, with the number of Information Technology Organizations using high levels of overseas activities and services globally set to enhance from 13 to 20% in the next two years time period. The majority of global organizations continue to favor India as an IT Outsourcing location. Along with India, China and Brazil are competing for second place for overseas IT services.
The market survey indicates that for European companies, India maintains its market lead for Offshore Software Development services. Still India is facing lots of pressures such as wage inflation and overextended infrastructure facilities. But in spite of all these issues India could mention its lead for IT Outsourcing services globally.
In short Offshore Software Development is beneficiary for the countries like India and China.