In 10 or 15 years, organizations may be outsourcing
all work that is "support" rather
than revenue producing, and all activities that
do not offer career opportunities into senior
management. In the 1990s, outsourcing took on
new strategic dimensions. Rapidly changing market
dynamics caused organizations to spend more
time focusing on their core business and global
competitive pressures.
India has effectively provided efficient software
solutions to more than 40% of the Fortune 500
companies. Citibank, Morgan Stanley, Wal-Mart,
AT&T, General Electric, Reebok, General
Motors, Sony, Boeing, Coca-Cola, Pepsi, SwissAir,
United Airlines, Philips, General Electric,
IBM, Reebok, Lucas, British Aerospace, General
Motors, and Sears are some companies relying
on software development centers or companies
based in India.
It is not surprising that corporate giants
in the United States, Europe, and Japan are
increasingly looking to India for cost-effective
and high-quality software solutions. In fact,
a World Bank-funded study in the United States
confirmed that vendors rated India as their
number one choice for outsourcing.
India has invested heavily in technical education
and can provide talented engineers at relatively
low cost. In addition to this, favorable government
and tax incentives are some of the advantages
India has to offer.
Some of the key
benefits to outsourcing to India are Capacity,
Quality and Cost:
Capacity advantage:
2nd largest English-speaking
software developer pool in the world (140,000+
software developers)
Every year 20,000+ new graduates
from universities (in computer science alone)
Cost advantage:
Annual salary for a well
experienced software developer
is relatively
30-50%
lower compared to Europe, USA and Japan
Quality advantage:
Most Software Service Providers
are ISO 9000 certified
32 companies with SEI/CMM
Level 5 (out of 58 worldwide)
Dynamic training infrastructure
Almost all of the Indian
software developers are trained and experienced
with state-of-the- art software development
technologies.
|