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India is now the preferred country for offshore software development . 203 of the Fortune 500 corporations now use India as their development base, either through an outsourcing company or directly (Source: NASSCOM).
The world is discovering the fact that India is a super power when it comes to developing IT solutions. Swept by the current of 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, Pepsi, Swissair, United Airlines, Philips, IBM, Lucas and British Aerospace beneficiaries and they always feature India prominently in their itineraries
Why Outsource Data processing and Software development to India ? Just as the Gulf has its natural resources in crude oil and South Africa in diamonds, India 's natural resource lie in its abundant technically skilled manpower. India is the world's second largest exporter of software (after the U.S. ), and is the source of management and technical talent for over 40 per cent of new start-ups in Silicon Valley . Thanks to its large English-speaking scientific and higher education institutions, specialist computer institutes, and low costs of software talent, India has more software companies with ISO 9000 certification than any other country in the world.
There is more than enough evidence of the superlative role that Indians play in the progress of the Net. The impact of India 's success abroad is also being felt. The stars of the Indian Internet industry are the Web solutions and Web ware companies, many of whom have made the transition from offshore turnkey and services companies to full-fledged e-commerce service providers and Web strategy consultants.
Some facts
- India offers many advantages that make it the favorite of 82 percent of US software export market (nasscom).
- Large pool of computer literate and English speaking professionals
- Well recognized Information technology skills
- Wide gap between personnel costs in India and developed countries.
- Work practices largely comply with ISO and SEI CMM standards. Three out of every four SEI-CMM 5 companies worldwide are located in India .
- Quality standards meet the approval of the world. India exports software to more than 95 countries.
- India has a stable political environment and pro-IT government.
- Reliable satellite and submarine communication links facilitate good broadband connectivity with the rest of the world.
A closer look at the benefits of outsourcing in India .
1. India 's human resources
Being the world's second highly populated country, human resources are a boon by itself. Just as the Gulf is renowned for its natural resource of crude oil, and South Africa for its diamonds, India is proud of the abundance and easy availability of its highly qualified and technically skilled English speaking computer professionals; who are key to success in the field of IT outsourcing to India .
2. Cost efficiency
Significant cost saving can be achieved by IT outsourcing to India , owing to the wide gap between the personal costs in India and that of the developed countries. Offshore outsourcing to India offers considerable economical benefits for those who are prepared to exploit the advantages of outsourcing.
3. Standard quality guarantee
The Indian companies involved in IT outsourcing in India provide high quality work, meeting international standards and complying with the ISO & SEI-CMM standards. Three out of every four SEI-CMM 5 companies worldwide is located in India . Thus India promises quality - IT outsourcing in India as it has the potential to furnish these services perfectly.
4. The reliable communication facilities
Excellent telecom, ISP, and cellular networks are available in all cities & towns in the country. India prides in the reliable satellite and submarine communication links that facilitate good band connectivity with the rest of the world. Thus companies engaged in IT outsourcing to India , can be in touch with the vendors without any connection hurdles. This plays a significant role in determining the success of offshore IT outsourcing to India .
5. Technologically advanced outsourcing firms in India
India 's technologies offer excellent software solutions. The applications include E-commerce, Business Process re-engineering, System Migration, Maintaining Legacy system, System integration etc. India prides in outsourcing facilities that are required to compete with others; which is yet another reason as to why the world prefers It outsourcing to India .
6. Galloping growth in Indian economy
The service sector in India contributes 51% of the GDP. Computer software export was prominent with a growth rate of 40%-50% per year during the 90's. India being the second largest software exporter in the world, its large business houses and public sector units are growing steadfastly towards raising economic growth..
7. Stable government facilitating IT growth
India has a stable pro - IT government whose policies, economy, GDP growth, taxation, power, telecom, industrial parks & special zones have been helpful in improving the infrastructure as well as communication. The government proves to be a great support for software firms by further providing all the basic facilities required for an outsourcing company to flourish thus playing a major role in contributing to the success and well-being of IT outsourcing to India .
8. Indian government policies
- IT is regarded as one of the top 5 priority industries in India . IT is a part of the national agenda, and policies are framed so as to obtain maximum benefit out of IT outsourcing to India .
- The liberalization and deregulation initiatives taken by the government are aimed at supporting growth & integration with the global economy. These reforms have enabled the entry of foreign companies to the Indian market. FDI investment from NRI's including Overseas Corporate Bodies (OCB's); owned by the NRI's are warmly welcomed in India .
- The new National Telecom Policy has invited private participants to the Indian telecom sector.
- The IT bill passed in 2000, gives a legal framework for the recognition of electronic contracts, prevention of computer crime and electronic filing of documents. NASSCOM along with the government is playing a notable role in protecting the interests of the IT sector. Thus with all these help, IT outsourcing to India has reached a point of no turning back.
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