software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, June 20, 2006

India Software Development helps economy

According to study, shipping IT services work to India Software Development helps economy of nation and might lead to higher real wages for American employees due to higher productivity and lower inflation. In the latest meeting where debate going over sending technical work to offshore outsourcing nations, a report sponsored by an industry group says that the practice is good for the American economy and their employees. Offshore Outsourcing to India Software Development and IT Outsourcing Services tasks are not only boosting the American GDP but also creating some USA jobs, that includes good positions in the sector of Information Technology, according to one survey report.
All organization is locating their operations in lower-wage nation’s likes of India, and there would be good development of India software development industry, including some of the members and technical giants like Electronic Data Systems, IBM, and Accenture. While doing Offshore Outsourcing and IT Outsourcing, it has definitely displaced and it will displace employees in software and IT services for future time as well. But due to the increase of occupations the economic activity has created a wide range of different and newer jobs, both in the field of Information Technology and India Software Development. As the advantage compound over the time, American economy will operate efficiently, and going to achieve good level of output, and it will create double the amount of jobs than displaced due to overseas services and increases the real average real wage. Real wages were 0.13 % higher in year 2003 and are expected to be increase 0.44 % in year 2008.
As a practice, the study reveals that due to farming out of high-skilled tasks to low-wage nations and it becomes a hot-button issue as part of the American presidential campaign, so called Offshoring is also pitting organization against employees. The Outsourcing of high skill and high wage jobs to low salaried nations poses a long-term, serious challenge to the American countries with technological leadership, economic vitality and military security.

India Software development and software outsourcing

The year 2003 was devoted to India Software Development and Software Outsourcing by more than 2.3 % total software and IT services spending by USA, according to the report. And this figure is going to rise more than 6 % in year 2008. During the same time, total savings from Offshore Outsourcing is going to expect 21 billion dollars. So it is but obvious that inflation would decrease and productivity will increase due to the cost savings from Offshore Outsourcing resources and will boosts business & consumer spending and will increases economic activities.
The study says that India Software Development have added 33.5 billion dollars to real GDP in the America in previous year. By year 2008, the real Gross Domestic Product is expected to be more than 124 billion dollars. The activity of incremental economy from offshore outsourcing and India Software Development have created more than 91,000 new jobs in year 2003, and that is expected to create more 318,000 new jobs with in year 2008.