software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, May 25, 2010

Outsourcing to India is Helping Foreign Companies Tide over Their Recession Woes

India is the hotspot outsourcing destination for the software development, from world over. The rich pool of talented software programmers, developers and engineers has propelled India ahead of other countries. India is home to world class software companies which provide cutting-edge software solutions to their clients. With 65% of the world’s CMM level 5 companies, India has become the most favored software outsourcing destination for foreign companies located in USA, Europe and Australia.

Foreign companies gain a lot by outsourcing to India, their projects. As Western economies struggle out of the recession, they find Indian software companies very attractive because they get the best software services in world at very competitive rates. This saves them good amount of capital. They do not have to spend on the infrastructure or hire expensive manpower. This increases the productivity and pushes up the return on investment, which is very critical for the success of their business.

Foreign companies outsourcing to India, get the benefit of technical finesse, which the Indian software workers have in them. The clients stand to gain from the expertise because the partner company to whom the work has been outsourced is usually quite proficient in its field. This increases the quality of the output and helps the foreign clients to maintain competitive edge over rivals in their local market.

As majority of the American companies are outsourcing to India, they enjoy a turnaround for their project, especially in software development. This is because when it is night in USA it is day in India. This time zone advantage, allows the Indian companies to finish any urgent work and dispatch it back to USA, the next day. As a result the clients are able speed up the delivery to their local customers.

Outsourcing to India is a blessing for foreign companies because it has helped them out of   recession by reducing their daily operational costs, without compromising the quality standards. Indian software companies have developed the knack to deliver quick, cost-efficient and customized services to their clients. They have created a niche for themselves on the world level through their dedication, expertise and customer-centric approach.
Monday, May 17, 2010

Adopting the Right Software Development Methodology to Deliver Software Solutions

Software development is a sequential process in which the software development company adopts a singular or combination of two or more accepted methodologies to create software application or program. The project is analyzed and all the associated risks are taken into consideration before initiating the project. This approach minimizes the risk and helps to reduce the total cost of the development.

In computer programming, the programmers design, develop and test the main source code of the computer programs. The purpose of the programming is to customize the software for the clients. Software development extends beyond programming. It includes research and development, modification and re-engineering, maintenance and trouble shooting, to create the desired software product.

The software development company can adopt a structured approach in which the pros and cons of the project are well understood and effective strategy is developed, and followed meticulously. This is time bound approach and the results are delivered within deadline. The whole process is split into series of phases and tightly controlled. The end user and software development firm interact with each other from the beginning to the end of the project so that desired results are achieved.

The other type of methodology which adopts an extreme approach uses hit-and-trial strategy. Here the risks are high and the outcome of the results cannot be guaranteed. In such a scenario, a software development adopts Incremental methodology or Prototyping.  In Prototyping the incomplete version of software programs are created and tested. In case of failure, it is shelved and a new prototype is developed, which might be closer to the desired product. As the final outcome is not envisioned, prior to commencement of the project, risk involved is quite high.

The software development firm keeps in mind the needs and aims of the project before choosing a methodology. The chosen approach may also consist of structured and extreme methodologies, which synchronize with each other to deliver the desired software solutions. Waterfall, Prototyping, Incremental, Rapid Application Development (RAD) and Spiral are some well known methodologies used by the software development company today, to deliver customized software programs to the end users.
Tuesday, May 11, 2010

What does the New Outsourcing Tax Law has in Store for India?

At the start of this year the Federal Government announced plans to slash taxes for American companies who generate jobs in the US. The matter of the fact is that now there will be heavy taxes laid on the companies who outsource their jobs from cheap-labored countries like India. India has long been a resourceful country that has helped numerous companies in the western countries from offshore software development. America plans to encourage the creation of more jobs in the US and curtail outsourcing to India and China. So now what? These plans make the future of software outsourcing industry in India look bleak.

As India provides about three quarters of its software outsourcing services to the US alone this new policy comes as a setback for the offshore software development industry in India. Yet IT gurus in India are not much worried as they believe that due the high cost advantage from outsourcing software development to India and China the American firms make huge profits that cannot be brought down by imposing taxes.

Furthermore, this new taxation policy may very well backfire and directly affect the American public. As software outsourcing and allied IT services yield better quality products with cost effective rates as compared to the jobs done nationally, if the companies opt out of software outsourcing then they will be paying more for the onshore production. Hence by saving taxes the companies will subsequently increasing their development costs and hence the consumers will end up paying heavier service taxes. This will directly affect the American public and the tax on outsourcing law can eventually backfire.

With all said, it will be wiser to wait and watch till the Federal Government implements these laws. Also it will be interesting to see how the American market reacts and how the companies cope with the new software outsourcing restrictions. How the government will monitor the outsourcing of software development to India and China? Will American firms overlook the huge cost differentiator and decide to invest in jobs in American soil? Will they be able to find skilled labor just as easily within the American shores? Will these firms find loopholes in the new policy and work around it to continue with their outsourcing activities? How does the government propose to keep retail costs low when the product is manufactured in US, itself?

Everyone in the offshore software development industry is waiting with baited breaths for these tax policies to be implemented. Till then the work will flow as it has been over these years. American protectionism or something else, whichever is the case, surely has significant effects underlying it. Hence it would be hard rather than unfair to speculate the outcomes and their effects on India and the IT industry.
Tuesday, May 04, 2010

Why Software Outsourcing to India?

Software development has become a menace for non IT organizations. No enterprise can survive without technology in the time of the Internet. All have to make their presence felt over the Internet. What about the companies that do not have software development competencies in their business? They have a convenient option to outsource their IT jobs to experts like the< software development companies in India. Software outsourcing to India has become a hot market and offers high quality software development solutions at competitive prices. Last few years have seen India become the leader in software outsourcing worldwide. Software outsourcing to India has solved many a dilemmas of companies worldwide pertaining to their IT solutions. In fact the Silicon Valley biggies like Microsoft, Google, and IBM are setting up their development centers in India.

Software development adds strength to client business by providing competent technology that would not only automate business processing but also improve productivity. The good thing with software development outsourcing is that software can be custom built, i.e. one can get a precise software solution that would suit their business perfectly. India has a pool of IT talent that is capable of taking up challenges coming from any industry vertical and business domain. So software outsourcing to India gives you the opportunity of getting a tailor-made software solution that stands up to your business requirements and specifications.

Advantages of software development outsourcing to India:
  • Low software development costs
  • Concentrate more on core business processing
  • Top quality services with precise solutions inside time constraints
  • Understanding vendors that study your business well
  • Global reach by working with international clients
  • Lesser HR hassles
  • Contemporary IT infrastructure with latest technological skills
  • Excellent 24X7 technical support

Software development outsourcing to India saves two main resources of the foreign clients – time and money. Thus the international clients can spend more time on marketing their products, improve their customer relationships, and maximize ROI with increased profits.