Tuesday, May 30, 2006

The Offshore Software Outsourcing History of India

The Offshore Software Outsourcing history of India is one of phenomenal growth in a very short span of time. The idea of software outsourcing has its roots with the competitive advantage. Over the last few years, the meaning of the term Offshore Software Development has undergone several changes. With the started off from the shifting of manufacturing to nations providing significant cheap labor at the time of Industrial Revolution, has taken on a new meaning in today's scenario. In a world where Information Technology has become the backbone of global businesses, Software Outsourcing is the process by which any organizations hands over part of their work to another firm, and making it responsible for the implementation and design of the enterprise business process under some strict guidelines regarding needs and specifications from the Offshore Software Outsourcing organizations.
The process is advantageous for both the Offshore Software Outsourcing firm and the service buyer, as it enables the offshore service buyer to decrease costs & increase quality for non core areas of business by utilizing the expertise with competencies for the maximum. And now one can see the real benefit to the service organizations in India as the time of they matures, prosper of building core capabilities beyond possibilities by the Offshore Software Outsourcing companies.
Since with the globalization in India during year 1990, government of India has pursued programs regarding economic reforms committed towards privatization & liberalization. Till year 1994, the telecom sector of India was under direct control of government and the state owned their units with enjoyment of a monopoly in the real market. Further the New Telecom Policy in the year 1999 brought some changes by introduction of IP telephony that helps to end monopoly of the state on international calling facilities. This reduced the heralded of the golden era for the IT Outsourcing/BPO industry with ushered in a larger number of inbound/outbound call centers and data processing centers.

Offshore Software Outsourcing Services

Although the IT and Offshore Software Development industry in India has existed since the early years of 1980s, but with the mid 1990s it saw the emergence of real outsourcing work. One of the 1st services that outsourced was medical transcription, but business process outsourcing such as data processing, billing, and customer support began at the end of the era 1990. When multi national companies established wholly owned subsidiaries which catered to the offshore outsourcing needs of their parent organizations. In the market of India American Express, GE Capital and British Airways were the early players for such type of offshore work. Organizations of India are providing numerous variety of Offshore Software Outsourcing services that are ranging from clients care, database marketing, transcription, and billing services to Web design, sales/marketing, transaction document management, accounting, tax processing, telesales/telemarketing, Human Resource and biotech research.
The ITES and BPO industry is a young and developing sector in India and it has come in existence before 5 years or so. On the Indian scene it has arrived just recently, but the Outsourcing industry has grown phenomenally and has now become a very significant and important part of the export-oriented software and IT services. Initially it began their activity for MNCs’, but now it developed into broad based platform of business backed by leading IT and software Outsourcing Indian companies. The market for ITES and BPO has expanded its base by the entry of Indian IT Outsourcing organization and the global ITES market is characterized with the existence of IT leader that are able to provide their broad skill of sets to global clients by offering a wide spectrum and services in these days.
The National Association of Software and Service Companies-NASSCOM have created very well platform for the dissemination in knowledge and research for the industry by their survey & conferences. The organization acts as consultant, coordinating body and advisor for the IT and Offshore Software Outsourcing firms and coordinate between the state and central government committees with the industry body. With the look at the success of IT Outsourcing India, the central government identified some of key contributor towards economic growth that are prioritized with the attraction of ‘Foreign Direct Investment’ in the sector of establishing Offshore Software Outsourcing Technology Parks & ‘Export Enterprise Zones’.