software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, August 22, 2006

Offshore Software Development brings jobs back to home

The latest study suggests that Offshore Software Development brings jobs back to home because of lack of resource in overseas countries. Most of the IT companies from Unites States, UK and Australia are heavily involved in Offshore Outsourcing and development assistance to the countries such as India, China, Philippines and Russia. In last five years of time period the flow of sending the development work to such countries has increased by 10 to 15 times more. The process of Offshore Software Development has become one of the most important parts of almost all the IT Organization in US, UK and Australia. It is marked that IT Companies from these countries are heavily taking help of India and China for lower cost software and other IT development services.

If we compare in the current market for the best overseas IT service providers, India is the best destination amongst all. India stands first for the software services while China stands first for hardware development services globally. Both the countries are rivals of each other for overseas IT services. Most of the software related business comes to India because of its cost-effective and high quality resources. IT talents from the house of India are demanded the most globally for their qualitative development services and expertise. India also has upper hand because of a huge English speaking people. It is also one of the reasons for the high popularity of India for overseas IT development services.

Demand of Offshore Software Development globally

But with the higher demand for overseas development services, it is also marked that countries like India and China are now also facing the shortage of talents because of higher demand of Offshore Software Development globally. It is also marked that labor cost is also rising in these countries but still there is not any changes in the popularity of India for possible Offshore Outsourcing services. Overseas companies are hiring Indian talents with higher pay package. But with the shortage of the talents it is also marked that many of the development jobs are now going back to home in many countries. Many of the IT companies have to employee local resources due to the shortage of Offshore Software Development resources in the countries like India and China. Both of these countries must take some serious actions to meet the global overseas development requirements.

There are some key and important reasons behind the popularity of the Offshore Software Development and overall Offshore Outsourcing business process. It provides lots of flexibilities in the business and helps the IT Companies to concentrate on the prime and core business operations. The development work in India and other service providing countries is also less expensive, so such overseas development is proven to be cost effective also. These factors and many others have really made the Offshore Software Development process the most important part of today’s modern business process.

All these indicates that increasing overseas development craze has really posed a great challenge for the service providing countries and slowly the process of Offshore Software Development is replaced by in-house services.