Why Software outsourcing in India?
Infrastructure that is of importance in the IT industry
includes telecommunications, electricity, access to computers,
number of Internet hosts, number of ISP's and available bandwidth
and broadband access.
Software Technology Parks of India offer world-class infrastructure and various incentives and concessions to encourage foreign investment and promote software development in India e.g. 100% foreign equity is permitted and approved under the Automatic Route delegated powers to The Director STPI, tax holiday until 2010, etc.
Communications is one of the critical infrastructure requirements
of a country. India, with its one billion people, over 500
districts, around 5,000 villages and large metropolitan cities
having population equivalent to that of many countries needs
an extensive infrastructure to serve such a population.
Excellent telecom, ISP, and cellular networks are available in all cities & towns in the country. India prides in the reliable satellite and submarine communication links that facilitate good band connectivity with the rest of the world. Thus companies engaged in IT outsourcing to India, can be in touch with the vendors without any connection hurdles. This plays a significant role in determining the success of offshore outsourcing to India.
Telecom bandwidth issues have also been addressed. Many private ISPs have come in this sector and telecom costs have dropped.
Power availability has also improved dramatically and has become more consistent throughout the country.