Software Outsourcing To India- Will India Retain The Number One Spot?

Software outsourcing to India has been growing over the years and there is no doubt that India till this date remains unmatched in this field

. With over two decades of rich software development experience, sound IT infrastructure and worldclass software companies, have pushed India to the number one spot.

Today, 50% of the world wide IT development is outsourced to India. This figure signifies the thumping presence that Indian IT industry enjoys on the world IT map. However there are emerging challengers like China, Philippines, countries from Eastern Europe and Latin America. These new competitors in near future might appear more attractive destination on price front.

The latest anti-outsourcing bill passed by the US Senate is aimed at big outsourcing companies, especially India IT outsourcing companies. Once the bill comes in to effect, it will become quite expensive for the large outsourcing companies like Infosys, TCS and others to send their worker to work on onsite locations in America, because of increased visa processing costs. This will increase the company spending and make it less competitive compare to other software outsourcing destinations. China is next big threat because of its better economic reforms and stricter governance compared to India. Presently China lags behind India in software outsourcing but its faster development rate might impact the software outsourcing to India.

Terrorism in India has grown to serious proportions and can erode away the credibility of the Indian government to provide safe environment for businesses. The outsourcing clients want smooth continuity in their outsourced business operations, because they are dependent on the Indian business partners. Any disturbance in Indian environment will certainly have negative effects on their business interests.

The metro cities like Pune, Bangalore, Hyderabad and others are saturated with IT companies and growing population has raised the living expenses. This has made such cities expensive and the software development costs have spiraled. On the other hand, slow paced development of tier-II cities, which offer cheaper infrastructure costs, is hurting Indian IT industry. As a result with passing time the India software industry might loose its competitive edge to its emerging rivals.

However Indian software industry has underlying strengths, which gives it a clear lead over its rivals. The skilled pool of world class software professionals are one of the finest in the world and have made outsourcing to India, undeniable. Their technical prowess is unparallel and at same time high proficiency in English language makes outsourcing to India very attractive. India is basically a young nation compared to China because majority of the population is made up of young people, who are increasing their education levels. The time difference between India and America, its major outsourcing partner enables Indian software companies to synchronize well their work flow with their US partners. This removes the bottlenecks in the outsourcing process and enables in timely delivery of project, to complete satisfaction of the clients.

The Indian software industry should work in tandem with Indian government to overcome the hurdles that it faces, today. The collective efforts will help Indian software industry to meet the new challenges, effectively and ensure that software outsourcing to India increases rapidly in coming years. This will undoubtedly help India to retain its number one spot in software outsourcing.

by: lauren jafor

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