Offshore India

Wednesday, June 29, 2005

More and more offshore software outsourcing work is going to India because India offers many more advantages. There is a lot of negative press coverage, some political oppose and scams like recently exposed by a UK based newspaper. Yet, India is maintaining its edge in offshore software outsourcing. Many factors affect this advantage of India like its price, quality, economic policies of the Indian government, big English speaking population.

Offshore India Software Development Companies

To match the expectations of global multinational companies, Indian companies started implementing CMMi Maturity Level 5 quality assurance procedures and today, India has highest number of CMMi Maturity level 5 software development centers. Rather then providing raw low quality low cost coding, Indian companies are determined to provide quality coding at higher cost. Indian software companies are increasingly adopting the standards of US companies to provide quality.

Although, in offshore outsourcing deal, quality is not a very important factor. Once a client and service provider starts working together, and software outsourcing service provider starts providing good service, the customer generally continues with the same vendor for the longer term. Generally, clients don’t leave software outsourcing service providers unless there is a huge difference in cost by other providers or something goes dramatically wrong. Offshore software development companies are nowadays continuing to improve their quality process. Because they understand the importance of achieving domain expertise and quality along with specialization rather than the one-stop for all service.

In India, cost of programmers is increasing rapidly. Every year 15-20% increment in salary is lot higher then programmers in US who get around 2-3% increase in salary. But an Indian programmer gets around 25% of the salary of his American counterpart. As this difference is very high, there is enough room to grow for Indian offshore software development companies. Along with the cost, Indian companies also started recruiting their managers from US and other countries. This reduces cultural difference between client and offshore outsourcing team.