Software Outsourcing to India

Outsourcing software development has become a prominent business practice in which a company contracts all or part of its software projects to the outsourcers. Outsourcing software development has become one of the most critical topics & most widely implemented management tool for organizational change. The growing software market offers firms to recruit critical resources to develop quality software including skilled engineers to develop software efficient markets channel to distribute software, strong support from academic research centers & an active capital market to support risk. For this, India has become the largest software outsourcing hub. Currently software industry in India is estimated to be worth $1.2 billion US dollars. Many international companies like IBM, Microsoft, Oracle, IT&T, Motorola, HP etc have chosen India as offshore outsourcing destination.

India enjoys the following advantages over some other nations which promote software outsourcing:

Cheap Development Cost: The development cost is relatively low. As compare to USA the overall development cost of the project in India is 50% less. This is because the difference between in the cost of living of developing & developed countries.

Highly trained & skilled personnel: India has the world's largest pool of scientific manpower. It has a growing number of more than 3.5 million tech personnel with more than 41000 IT graduated annually.

Quality: Various training programmers & certification processes ensure the quality of software personnel & services. Today many CMM level5 and ISO certified companies are located in cities of India.

State of art Technology: A survey shows more than 65% of Indian software companies use the state of the art technology in their software development process. It includes the use of Computer aided software engineering (CASE) & fourth generation Languages (4GLs) in Software development; adoption of graphical User Interface, OOP techniques etc. Acquiring high computing equipments is no longer a major obstacle for software project as the price of such equipment is going down dramatically. The declining cost of telecommunication facilities that can lower cost of delivering the programmers output to their clients around the world.

Establishing Partnership: The huge market opportunities in India are very attractive to foreign enterprises .One of the ways of stepping into the local market is to provide outsourcing projects to the local societies so that to establish a positive relationship for the further market development.