Outsourcing software development to India has become more and more popular over the last few years, and picked up even more momentum lately. Corporations in the USA have followed this path because a technology worker costs some five times less in India than in the USA. Motivation for Outsourcing Corporate executives started seeing software development and support, and the whole of Information Technology as a cost, and not as a strength, nor a differentiator. So they started thinking of it as something they can subcontract, just like security guards, janitorial, landscaping and snow removal.
Objections to Outsourcing
However, this is not always the case, and there are hidden costs, and some pitfalls, such as difference in work culture, communication styles, and time zones, not to mention the long term safety and security concerns of giving everything to a foreign country, and a foreign jurisdiction. The analogy of janitorial and landscaping is not an accurate one though. The reason being these services, although they are outside the company, they are still within the city or the country. This gives some soft of control, being under the same jurisdiction, and there is no danger of political tensions, wars, or the international scene affecting the service. Moreover, low risk, and not core to the business. Software and Information Systems in general contain many functions that are vital to the company doing business, and in many cases it is part of the “Intellectual Capital” of the company.
Offshore outsourcing has been popular for several years. Countries like India are popular offshore outsourcing locations which offer cost effective solutions. There is a wealth of articles and write ups about the cost advantages of offshore outsourcing with a majority claiming anywhere between 40-50% savings.
Security and Privacy Issues is now stronger than the Past in India. Both Government and Private Sector are taking various steps to maintain the Peaceful atmosphere in IT Sector. Even small and medium Software Development Outsourcing Enterprises like Encodex Technologies India are very disciplined and careful to verify their Employees. The yearly turnover is increasing for total Outsourcing Sector in India.
A lot of people focus on India for lower costs. What is remarkable in India is the caliber of the computer engineers. The cost savings were an additional benefit. The work culture and Atmosphere of most of the Indian Software Development Company’s are now CMM or CMMI level Standard.
India’s workforce also offers the largest pool of technical skills in the world, and the country’s universities add 220,000 engineering graduates to its ranks annually. The world is discovering the fact that India is a super power when it comes to developing IT solutions. Swept by the current of the latest trend “IT outsourcing to India”, we find many fortune 500 companies like 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.
Following Factors are the Reasons why Offshore Outsourcing is coming largely in India?
o India’s human resources
o Cost efficiency of IT outsourcing in India
o Standard quality that firms doing IT outsourcing in India guarantee
o The reliable communication facilities
o Technologically advanced outsourcing firms in India
o Galloping growth in Indian economy
o Stable government facilitating IT growth
o Indian government policies
o Positive and Encouraging Policies by Indian Government
So the Ultimate Outcome of Offshore Outsourcing in India is Developing Outstandingly.
Offshore outsourcing involves a great deal of thought. One should not be spurred simply by expectations of rapid cost reduction. The new mantra of offshore outsourcing to India is quality solutions. When processes are off shored to India, companies not only get the advantage of low cost but also experience improvement in productivity and quality. These are the reasons that should motivate offshore outsourcing to India.