Software Outsourcing and India

Sunday, June 26, 2005

There is much opposing offshore software outsourcing. But every company should consider software outsourcing. Because Software Outsourcing is a megatrend and it is changing how business is performed. The cost difference is such a low that, developing countries which can offer highly skilled but low cost educated software programmers can reduce software development cost very low and can provide faster time to market. This offshore software outsourcing is not just for big companies that have millions of dollar turnover but it can benefit small companies too. So, it is a myth that only large corporations can only benefit from software outsourcing.

Why Software Outsourcing India

India has a very large education system which produces above 3 million graduates every year. Apart from that, India has the highest number of English speaking people after the United States which is a key factor in the growth of the Indian outsourcing market. Offshore outsourcing started in India way back in the ’90s and since then it has grown and matured the outsourcing process to match standards like CMMi Level. Many big companies like General Electric and British Airways were the first to start a business processing center in India before many years to reduce the cost. Although at present, there is oppose on offshore outsourcing, many giant US companies have shifted their important back-office work to India. That gives geopolitical stability as the US will prefer to avoid tension with India on this issue. So, also there is some risk, actual risk compare to benefits is negligible.