software outsourcing

A blog related to software development company and offshore software outsourcing

Sunday, July 30, 2006

India Software Development still attracts the globe despite rising Labor Cost

The latest study suggests that India Software Development still attracts the globe despite rising Labor Cost in the country. As we all know India in the leading destination for any type of Offshore Software Outsourcing Services. Along with rapid increasing demand of India, the global competition is also increasing and the study suggests that slowly the labor cost in India Software Development is increasing for a year or so. As India is very-well known for its lower labor cost and good quality services, so increasing labor cost might affect the image of India. But the study suggests that India could maintain its image as the best IT Outsourcing Destination despite of rising Labor Cost.
The study suggests that, for overseas companies cost advantages of hiring IT talents from India is likely to continue at least for another 5 to 7 years. Though, many of the local Indian IT Brand companies feel that increasing salary is decreasing their profit margin. The overseas companies such as IBM, Accenture and many others are increasing their presence in India rapidly and posing heavy competition for local Indian Brand Names for staffing and other facilities. This seems to be the most effective reason behind the railing labor cost in the country. It is also marked that the salary pay scale ratio for Indian Developers and Programmers is increasing at almost 12% to 15% every year.
As the development as well as the labor cost is increasing in the country, the service providers are adopting newer ways of dealing with it and trying to improve the productivity that will help them in reducing the hiring of the staff. The vendors from the India Software Development are sure about such policy to reduce the hiring of the talents and would help them in keeping the cost low for Offshore Software Outsourcing Services. It is also marked that salaries for the experienced developers are increasing rapidly, while the salary structure for the fresher is still flat. India Software Development is a vast pool of talented and skilled software engineers and every year hundreds of thousands of engineers passes out from some of the best universities of the country. It is also true that no other country can offer services and talents that India can offer.

Success of India Software Development

The experts predict that the overall value of Offshore Software Outsourcing contract globally would remain lower in 2006 than it was in the year 2005. As far as the share of the India Software Development is concerned, rising in the pay scale will not affect the demand of the country up to any heavy level and the demand of the country will continue globally. No other countries have the best combination of talents and cost that India has and this factor plays the key role in the success of India Software Development. The opportunities in the country are also increasing in the software products and services.
One thing is sure that the demand of the country would not have any adverse affect though the labor cost and development cost is increasing. The offers and services from India Web Development in the field of Offshore Outsourcing would continue increasing the demand of the country.