Outsourcing software development to India has become increasingly popular in recent years and has gained even more momentum of late. Corporations in the US have gone down this path because a tech worker costs about five times less in India than it does in the US. Motivation for Outsourcing Corporate executives began to look at software development and support, and all information technology as a cost, not a strength or differentiator. So they started to think of it as something they can outsource, like security guards, cleaning, landscaping, and snow removal.
Objections to subcontracting
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 your all. a foreign country. , and a foreign jurisdiction. However, the analogy of cleaning and landscaping is not accurate. The reason is that these services, although they are outside the company, are still within the city or the country. This gives some smooth control, being under the same jurisdiction, and there is no danger of political tensions, wars or the international scene affecting the service. In addition, it is low risk and not critical to the business. Software and Information Systems in general contain many functions that are vital for the company to do 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 that offer cost-effective solutions. There are a plethora of articles and writings on the cost advantages of offshore outsourcing, with most claiming 40-50% savings.
Security and privacy issues are now stronger than in the past in India. Both the government and the private sector are taking various measures 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 careful in verifying their employees. The annual turnover is increasing for the total outsourcing sector in India.
Many people focus on India for lower costs. What is remarkable in India is the caliber of computer engineers. The cost savings were an added benefit. The working culture and atmosphere of most of the Indian software development companies are now of standard CMM or CMMI level.
India’s workforce also offers the most technical skills in the world, and the country’s universities add 220,000 engineering graduates to their ranks annually. The world is discovering the fact that India is a superpower when it comes to developing IT solutions. Blown away by 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 recipients, Pepsi, Swissair, United Airlines, Philips, IBM, Lucas and British Aerospace.
The following factors are the reasons why offshore outsourcing is coming heavily to India?
o Human Resources India
o Profitability of IT outsourcing in India
o Standard quality guaranteed by IT outsourcing companies in India
o Reliable communication facilities
o Technologically advanced outsourcing companies in India
o Galloping growth of the Indian economy
o Stable governance that facilitates IT growth
o Indian Government Policies
o Positive and encouraging policies of the Indian government
So the bottom line of offshore outsourcing in India is developing outstandingly.
Offshore outsourcing involves a great deal of thought. One should not be spurred on simply by expectations of rapid cost reduction. The new mantra of offshore outsourcing to India is quality solutions. When processes are shifted to India, companies not only gain the advantage of low cost, but also experience improved productivity and quality. These are the reasons that should motivate offshore outsourcing to India.