software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, May 31, 2005

Software outsourcing to India

India is leading offshore outsourcing destination since a decade. There are many reasons for that like cheap labor, technological agility, low cost and faster time to market, huge English speaking talent pool etc. In today's highly competitive software development business, offshore outsourcing is becoming necessary to maintain competitive advantage and drive down operating costs. US and European developed countries have discovered 40 to 60 percent cost saving as a result of software outsourcing. And what can be a preferred destination for that other then India. India is a talent-rich country. A huge pool of English speaking and computer literate manpower from Indian colleges can continue to cater to the growing demand of software professionals. India has 200 million English speaking people next to US which has 250 million English speaking populations.

Software outsourcing hub India is exporter of software development services to 95 countries. According to Gartner, India is leader in outsourcing and will continue its leadership till 2010. With export to many countries and relation to different culture, India is leader in global methodologies.

Leading companies world wide like Microsoft, IBM, HP, Sun have learned that to maintain their competitive advantage and stay ahead in the race and provide better value to their share holders, they need to reduce cost without compromising quality. For that, India provides highly skilled programmers and project managers who are tech savvy, reliable and innovative. Also, Indian companies are have developed world class systems for global majors. Quality and maturity of Indian software companies can be measured from the fact that, over 50% of the SEI CMM level 5 companies world wide are in India.

Also for software outsourcing, India enjoys confidence of multination corporations. According to a survey, 82% US companies mentioned that, India is their first choice for software outsourcing. Bill Clinton has applauded India's brain power and pointed that, Indian American run more then 750 IT companies in Silicon Valley. He also mentioned, ."You liberated your markets and now you have one of the 10 fastest growing economies in the world'. Bill Gates has mentioned that India is IT super power. That’s why Microsoft has strategic alliances with wipro and infosys for their .NET development platform. GE has $130 million technology center in Bangalore. It is largest research center outside US opened by GE. There are hundreds of multinational companies opening their offices in Bangalore.

Government of India is also keen to develop IT industry. India is biggest democracy of world and has world's 10th fastest growing economy. Indian government is trying to make India world's back office with its 1 billion population. According to Nasscom, India's revenue from IT enabled services will rich $16.94 billion. Government has also passed Information Technology Act 2000 which is now widely known as IT Act 2000. It brings e-commerce under law and states punishments for "cyber criminals". With this, India is in the league of 12 nations who have cyber laws. Government of India is providing tax benefits under STPI, SEZ and many other schemes to IT companies and promoting IT export. Special policies like single window clearance have been implemented. STPI offers world class infrastructure and various facilities, incentives to promote software development and export. It also allows 100% tax benefit. Because of all benefits given by government, Indian IT business is growing at the rate of above 40% and contributing heavily to its GDP.

Software outsourcing to India - Tatvasoft