software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, May 19, 2006

US Companies try competing India and China for Offshore Software Outsourcing

India and China at present are covering the IT market globally for Offshore Software Outsourcing. The main territory that is heavily involved with these countries for IT Outsourcing services are United States and Australia. Because of the heavy flow of shifting the jobs to the overseas locations the ratio of unemployment is increasing. Even the local companies are also facing lots of as well as heavy competition because of the excessive overseas dealings. So US Companies try competing India and China for Offshore Software Outsourcing services from there country.
The main reason for which the US and Australian companies are seeking help from India or China is the availability of skilled and talented men power with the lower labor cost. But now slowly it is marked that American companies have started to equip themselves to fight back to these overseas service providers. But the real question is “will these companies be able to compete India and China for IT services”? It is marked that IT companies from US have started to compete with competitive prices and supreme services and offerings.

Offshore Software Development Services to India and China

Though the companies from here started to fight back with the competitive prices, but would it be possible for them to provide services with such less and competitive prices? The IT development cost here is almost 4 to 5 times higher compared to Offshore Software Outsourcing services to India and China. So reducing price to this much extent won’t be possible for them. Because for any business the bottom line is to increase the profit of the company at the end of the day. Because of the higher development cost on shore IT companies here are looking for IT Outsourcing service providers from overseas.
Some of the IT companies are now trying to come up in the market with some unique service models against the Offshore Software Outsourcing services. The main purposes of these models are to make businesses run efficient and effectively, faster to market, flexible services, lower amount of risk and efficiently. Companies are also developing a stable mix of assessable results to assure the most cost-effective and convenient means of project management without ever compromising quality of the work to compete with the Offshore Software Outsourcing services. The companies from the US and Australia are trying to put all possible efforts to pose a challenge to IT Outsourcing process from their country.
Though, the companies are putting lots of efforts but still it doesn’t seem possible that they would be able to beat India and China for lower labor cost and best quality services as far as IT Industry is concerned. Reasons like faster time to the market, lower development cost, availability of the skilled and talented men power would always attract the local companies to take the help of Offshore Software Outsourcing services to India and China.