Software OutsourcingSunday, July 03, 2005
There is a huge political oppose in the US about software outsourcing. Yet software outsourcing will continue and according to Gartner research firm, out of every four high technology jobs in developed countries like the US, one will be outsourced to developing countries like India by 2010. Although China and Russia are emerging, India is yet an undisputed leader in software outsourcing. Gartner also mentioned that growth in offshore outsourcing to India is the biggest shift in the Information technology field in the near term. Nowadays, offshore outsourcing has become a part of the strategy of the business, not just cost-cutting mean. Global sourcing is becoming a mainstream delivery model for businesses. Companies that are not considering software outsourcing are risking their share holder’s advantage. Because cost saving is very high in offshore outsourcing.
Software Outsourcing is booming in the US and now it is catching up in Europe also. In 2005 first quarter, Europe was ahead of the US in software outsourcing due to the major deal of British telecom. With the increase of outsourcing from Europe and specifically from countries like the UK and France, it is very clear that companies are overcoming the cultural resistance.