software outsourcing

A blog related to software development company and offshore software outsourcing

Monday, October 30, 2006

Increasing demand of Offshore Outsourcing

With the increasing demand of Offshore Outsourcing from UK at a rapid pace, IP protection and IT Outsourcing backlash is gaining voice in the country. NASSCOM, authorized body for an Information Technology industry told that the recent changes in laws of United Kingdom point to protectionism taking root in the country for Offshore Outsourcing processes. By protection of employment, the revision for the transfer of undertakings regulations indicate some signs of protectionism taking root in the UK that have been quite open to Offshore Outsourcing, said president of National association of software and Services Organization.

For transferring of undertakings protection of employment increasing demand of Offshore Outsourcing Regulation, the new law by UK passed in last week mandates companies to take over the responsibility of finance for employees that lost their jobs due to Offshore Outsourcing. The department of trade & industry in UK said that transferring of undertakings protection of employment regulation is applicable with those employees that are shifted from United Kingdom to offshore countries under a new Business Process Outsourcing service provider. It sought to give some of security for workers of companies when it was acquired by another firm.
Earlier these regulations were applied for manufacturing companies, but now it has been amended for consideration to outsourcing services of Software and Information Technology.
Though it won’t impact as bigger as one have think but the regulations on Indian companies does matter with some concerns. It’s small step from the government to regulate and control, Mr. Karnik said earlier.

Today, we could see businesses of Offshore Software Outsourcing in India becoming more competitive with international market, using IT as a key enabler. The survey itself indicates the trend among Indian vendors of IT Outsourcing for increasing focus towards domestic market. In India the user industry is also outsourcing parts and entire IT infrastructure from specialized service vendors that require world class standards, and best practices. Increasing usage of Information Technology and adoption within the country is enhancing competitiveness in Indian economy and the user community.

With the increased Offshore Outsourcing adoption by user companies in the country, at both ends operational & advanced levels, the phase of ongoing investment from the industry will need a gestation period for exhibition of full potential. An industry of Offshore Outsourcing will need continuing the existing focus with sustaining of growth curve by investments and adoption. One hopes that the government will become a major Information Technology services user through the program of e-governance. The regime and favorable taxation policy will give a boost to greater usage of IT for the country with benefits and efficiency, productivity & employment.