software outsourcing

A blog related to software development company and offshore software outsourcing

Thursday, April 27, 2006

IT Outsourcing and an Issue

In current market scenario IT Outsourcing and an issue indicates that the entrepreneurs are seeking for the opportunities from where they can get cheap skilled labor with the quality. This is the main reason that tens of thousands of jobs, including IT jobs and project development services, continue to cross the territory of the country and the process of Offshore Outsourcing comes in to the picture. Competition in the market is increasing day by day and the companies are seeking the destination with a big pool of supply of relatively cheap, lower cost and highly skilled labor. The fact is that lots and lots of IT development job work is shifting to India and China from America as a part of IT Outsourcing and ultimately it ends to the job lose and unemployment according to the experts.
The reality and survey in America indicates that there isn’t any evidence that this business process has seriously damaged the United State’s economy. In fact, the survey report suggest that by 2010, as the current generation of baby boomers go off, there will actually be a scarcity of more than 10 million employees in America for IT development job work. And all this is taking place because the development cost in America is very high compared to India and China. One thing is true that, one may endlessly discuss the ethics of sending the job works to the overseas destinations for the cost savings purpose, but that will not stop the occurrence of the business process itself until there will be some major changes in the cost of the development in the country.

IT Outsourcing Services

The recent market survey predicts that there will be a tremendous growth in IT Outsourcing and Offshore Outsourcing business as it has been most frequent and most needed business process for almost all the IT companies in America. Now the question is not that will IT Outsourcing take place or not but the question is which destination will it select as the best one? From current market trend it can be predict that India or China would be the ultimate destination for Offshore Software Development services. In the present market situation India is on the top of the list for IT Outsourcing services and China is the best competitor for India.
According to the facts and figures India controls 44% of the global IT Outsourcing market for software and back-office services along with call center services. Its revenue from Offshore Outsourcing is $17.2 billion in the fiscal year ended March 2005. This figure indicates the lion share and popularity of India in the IT Outsourcing services globally. India have the presence of lots of overseas companies and MNCs for better quality and lower price software services. Along with that India also have the best brand names of IT Industry with it. These factors attract the overseas companies to deal with India for Offshore Outsourcing services.
In short this issue indicates that India is one of the most popular countries for IT services and the demand of India will also remain the same for IT Outsourcing services globally.