Software outsourcing to IndiaThursday, June 09, 2005
India has quickly become the benchmark for offshore software development center. Every year, the national association of software service companies (Nasscom) hosts a conference in the UK. The motive of this conference is to bring more UK organizations to outsource their software development and IT-enabled service business to India – outsourcing to India.
There are many British companies like British Telecom and banks like HSBC and Standard Charted who heavily rely on outsourcing to India. This outsourcing to India saves above 50% of the cost according to many analysts. The analyst also predicts that soon one Indian IT company will be among the top five technology companies in the world.
Currently outsourcing to India is $10 billion and out of that, 2 billion businesses are from Europe. This is growing at the rate of 30% and according to Mr. Karnik, president of Nasscom, by 2008, Indian export earning will be $50 billion and total revenue will jump to 87 billion dollars. IT outsourcing and software industry is accounting for 25% of all exports for India and a massive 8% of the total GDP. But it is employing just 0.25% of the total population only. With this massive demand in software outsourcing to India, India is providing 500,000 new IT and engineering graduates every year to meet the demand.
Many other countries have entered in the software outsourcing bandwagon like china, Russia, and eastern European countries. But India is far ahead in this race. China has a chance of developing a competitive offering but it will take a few years.
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