Software Outsourcing India - Why Should One Prefer India For Outsourcing?
During the last decade, offshore software outsourcing has gained tremendous interest
and has evolved with regard to its adoption and acceptance globally. Today many countries offer low production and labor costs. But to make outsourcing feasible, other business-promoting factors should also be considered. Factors such as maturity of the outsource market, government support, infrastructure, political stability, time differentials, the legal system, the number and quality of skilled workers, technological modernity, location and accessibility, education and English language skills. These factors are responsible for the Indian IT outsourcing industry continuing to experience a tremendous growth rate of 2530% per year.
India dominates 80-90 % of the total of offshore development revenue worldwide and is expected to be the key leader in offshore outsourcing in the next 5 years. According to a survey, Eighty Percent of outsourcing companies from European and United States ranked India as their number one outsourcing destination. The NASSCOM also reported that almost 50 percent of all Fortune 500 companies decide to
Outsource Software Developmentto Indian outsourcing firms. Corporate giants like IBM, BA, BT and GE have migrated parts of their internal software development operations to countries like India and Ireland. These firms found the transition relatively easy due to lower cost, a loyal workforce, an English speaking culture, surplus of computer graduates and government incentives.
Here are some of the strongest factors in detail that makes India as the strong outsourcing destination:
1. Stable Government and Attractive IT Policies
Government Support is a highly significant in order to grow outsourcing industry in any country. The government of India was among the earliest to realize the benefits from focusing efforts to grow outsourcing industry. One of a good example of this is Indias 1991 Statement on Industrial Policy. This facilitated foreign direct investment and technology transfers, ushering in a new era with fewer of the regulatory burdens that had previously kept foreign firms from establishing business operations in India. India is the largest democracy in the world today with a stable pro-IT government. Information Technology is considered among the top five priority industry in India. The government provides support to the IT industry by providing various tax-related and other benefits and by enacting the IT Act, which recognizes electronic contracts, bars cybercrime, and supports e-filing of documents. The government has framed policies in order to obtain maximum advantages from IT outsourcing to India.
2. Largest Technical and Professional Talent Pool in the World
There are not many developing countries challenging India when it comes to its vast pool of skilled and talented human resources. India has the largest English-speaking population in the world accounting to over 3.5 million and an educated technical workforce pool of more than 4.1 million workers. However, it is not just numbers but the quality of talent that attracts companies from the west to outsource to India.
3. Flexible Pricing Options
Cost saving is the most significant factor which makes India as the top choice to outsourcing by companies around the world. The difference between labor costs in India and that in the western countries is massive. This allows companies in the west to make tremendous cost saving by hiring off-shore teams for development in India. For example, a good developer in the US would charge anywhere between $50 to $80 USD per hour depending on his/her skills and experience. In comparison a developer with similar skills and experience can be found for as low as $15 to $20 USD per hour in India.
4. Consistent High Quality Services
While the cost factor plays a massive role in outsourcing, the consistently high quality provided by outsourcing companies in India has also enabled India to remain as the top outsourcing destination. The findings from a study by National Outsourcing Association (NOA) highlights that cost reduction is only one of the reasons that companies consider offshore outsourcing to India, there are further benefits to be had in time-to-market and quality, leading to the belief that companies initially select India to save costs alone but stayed for the speed and quality.
5. Geographic Positioning
The unique geographical positioning of India help the outsourcing companies here to provide the quickest time-to-market due to the benefits gained by time zone differences. There is a 12 hour difference between India and the United States which presents a good advantage to many companies in the US to complete the work in advance, resulting in greater efficiency, increased productivity and gives them more time to focus on other important tasks. The time difference further helps companies who desire to outsource various service-related options, such as Helpdesk services and 24X7 Customer Support to India.
6. Strong Infrastructure and Technological Capabilities
India is among the fastest developing economy in the world. The development in India is almost two-faced. The level of infrastructure might not be at the same level throughout the country however it offers state-of-the-art telecom, ISP, and cellular networks in all major cities and towns. Companies looking for outsourcing services in India get benefits of the latest and best services in Software technology, including key areas like custom solution for e-commerce, BPR, system integration, technology migration etc. High speed broadband in major cities like Bangalore, Chennai, Ahmedabad, Gurgaon, Noida allow clients to maintain uninterrupted communication channels with the outsourcing vendors.
Considering the main factors as described above, Indias supremacy in the Global software outsourcing will remain unchallenged for more coming years and it will continue to be acknowledged as the top most outsourcing destination in the world.
by: OTS Solution
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