Outsourcing software development to India has become increasingly popular in recent years and has recently gained even more momentum. Companies in the US went down this route because a tech worker in India costs about five times less than in the US. Motivation for Outsourcing Corporate executives began to see software development and support, and all information technology, as a cost rather than a strength or differentiator. So they started looking at it as something they could subcontract, just like security guards, janitors, landscaping and snow removal.
Objections to outsourcing
However, this is not always the case and there are hidden costs and some gotchas such as: B. different work cultures, communication styles and time zones, not to mention the long-term security concerns of putting everything in a foreign country, and a foreign jurisdiction. However, the analogy of caretaker and landscaping does not hold true. Because these services may be outside the company, but still within the city or country. This gives some control as it is under the same jurisdiction and there is no risk of political tensions, wars or the international scene affecting the service. In addition, low risk and not core to the business. Software and information systems generally contain many functions that are critical to the company’s operations and in many cases form part of the company’s “Intellectual Assets”.
Offshore outsourcing has been popular for a number of years. Countries like India are popular offshore outsourcing locations that offer cost-effective solutions. There is a plethora of articles and articles out there about the cost benefits of offshore outsourcing, with the majority citing anywhere from 40-50% savings.
Security and privacy issues are stronger in India now than in the past. Both the government and the private sector are taking various steps to maintain the peaceful atmosphere in the IT sector. Even small and medium software development outsourcing companies like Encodex Technologies India are very disciplined and diligent in screening their employees. Annual revenue is increasing for the entire outsourcing sector in India.
Many people focus on India for lower costs. What is remarkable about India is the caliber of computer engineers. The cost savings were an added benefit. The working culture and atmosphere of most Indian software development companies is now up to the standard at CMM or CMMI level.
India’s workforce also offers the world’s largest pool of technical skills, and the country’s universities add 220,000 engineering graduates annually. The world is discovering that India is a superpower when it comes to developing IT solutions. Swept away by the current trend “IT outsourcing to India” we find many Fortune 500 companies such as Microsoft, Oracle, Citibank, Morgan Stanley, Wal-Mart, AT&T, General Electric, Reebok, General Motors, Sony, Boeing , Coca-Cola, Pepsi, Swissair, United Airlines, Philips, IBM, Lucas and British Aerospace beneficiaries.
The following factors are the reasons why offshore outsourcing is coming to India on a large scale?
o India’s human resources
o Cost effectiveness of IT outsourcing in India
o Standard quality that companies undertaking IT outsourcing in India guarantee
o The reliable communication facilities
o Technologically Advanced Outsourcing Firms in India
o Galloping growth of the Indian economy
o Stable government facilitates IT growth
o Indian Government Policy
o Positive and encouraging guidelines from the Government of India
So, the bottom line of offshore outsourcing in India is developing excellently.
Offshore outsourcing requires a lot of thought. Don’t be spurred on solely by the expectation of rapid cost reduction. The new mantra of offshore outsourcing to India is quality solutions. When processes are outsourced to India, companies not only benefit from low costs, but also from productivity and quality improvements. These are the reasons that should motivate offshore outsourcing to India.