Just a few weeks back some of the top most Software Companies had gathered in groups to have their views on Offshore Software Development as a way of escalating competence and saving millions of dollars through this way of the business process. In this meeting it was found that more than 75 per cent of the top most Information Technology companies are involved in the Offshore Outsourcing services in one or the other way. Even most of these companies also have made the Offshore Software Development their mainstream for the business services.
One more information came out from this meeting that most of these companies are engaged in dealing with Indian IT companies in one or the other way. Indian Information Technology Industry solitary draws more than $18 billion of this expenditure from these IT companies globally. Surprisingly this number is increasing at around 35 to 40 percent year over year. Many of these companies are also taking the help of Independent Software Vendors and Application Development Service Providers for the overseas services purpose.
Offshore Software Development services in increasing
For these IT companies Offshore Software Development has been the most important and prime way to stay in the current competitive market. Survey also suggests that increasing no. of service providers are now providing these low cost Offshore Outsourcing services globally. Such type of services also helps the companies to increase revenues and lower time to the market compared to the others. One survey also indicates that market of Offshore Software Development services is increasing day by day globally and currently this market has the value of $1 billion. It is also anticipated to expand to around $4 billion by the year 2008.
Experts also predict that with the time period of next 2 years, IT Outsourcing services will be must for almost all the companies and not the optional one. They also indicate that Offshore Software Development might also become the main strategy and standard operating procedure for many of the IT companies globally. This business process is also increasingly recognized as a prime competitive strategy in the global economy for no. of companies. Companies will also start accepting Global Delivery Model for the enhancement of their business process.
It is also true that companies and service providers are facing lots of challenges in today’s competitive market such as competitive market scenario, controlling increasing cost, product and service customization and many more. With these many hurdles Offshore Software Development is one of the most convenient and globally accepted business processes to overcome these problems up to some extent. It provides lots of benefits such as reduction in cost, flexibility and many more as a part of Offshore Outsourcing.
One thing is sure that challenges exist beyond the natural restrictions of Offshore Outsourcing benefits. But companies can reduce these challenges up to some extent with the help of Offshore Software Development facility.