The past few years have seen a strong increase in the use of offshore resources (outsourcing) for delivery of IT services, and to gain access to IT resources. This has been possible thanks largely due to advances in communication technology. India is one of the most preferred outsourcing countries due to its disciplined programming style that western countries need. More than 150 software companies in India are ISO 9001 certified. India also has the most CMM Level-5 certified software companies in the world. Since India offers a savings of over 40% if software companies outsource to the country, it results in reduced overheads for them.
Once you have a large network of global resources, it can bring greater flexibility to software R&D processes and IT and business services delivery. However, in most cases, the most primary driving factor is the savings on cost. As the competition between companies increases, outsourcing helps leverage an IT company (or any other company for that matter) the advantages of lower operating expenses. The companies thus seek the most suitable location to support their internal or external clients at low cost without compromising service quality.
Here are a few benefits that outsourcing to India offers:
- Availability of specialist, skilled programmers
- Availability of resources at a very reasonable cost
- Strong R&D and technical expertise
- A good education base to attract fresh talent
- Hardworking nature of Indians
- Experience with already executed complex IT projects
- Time difference of between 5.5 hours to 12 hours which works to the advantage of European and American companies.
Competition to India
Even though India continues to be the most preferred outsourcing destination, other countries are catching up. One of the most important factors in outsourcing (as far as U.S. and most of Europe is concerned), is the availability of English speaking resources, and India easily scores over other countries here. However, China, Russia, Taiwan, Brazil and other countries have realized the benefits of outsourcing, and are trying hard to catch up with India. India thus needs to be on its toes if it has to successfully fend its territory.