Tuesday, 6 September 2011

Why IT outsourcing in India is on fast track?

Before we peep into the reason why businesses prefer IT outsourcing in India, it is important to understand the basic terminologies.

What is IT outsourcing?

When any firm hire another firm or human resource to meet its information technology(IT) needs or software development services. This is a kind of contract which is either based on a project or time span. For example, company X is purely a finance company but they do require some IT services. If they hire company Y to get software development services for particular projects only then it is called IT or software development outsourcing.

What is offshore software outsourcing?

When any company from US, UK or Europe outsource its software development services to India or any other foreign country then it is called offshore software outsourcing.

Why India is at top in software development outsourcing?

Indian IT outsourcing market is playing crucial role in the growth of Indian economy. There are many large and reputed software companies existing in India who offer wide range of IT services to cater diverse business needs. From companies like fortune 500 to any small size firm, thousands of firms are outsourcing their software requirements from India and saving millions of dollars every year. There are plenty of reasons why global businesses choose IT outsourcing in India:
  1. India is world's 2 largest country in terms of population thus have great human resource which is well-qualified, technically talented, knows international languages mainly English and quick learner. These are the key reasons behind increasing demand of offshore software outsourcing from India.
  2. Due to large technical human resource, competition is extreme and cost of services is economical compared to UK and USA. This is major parameter which attracts global businesses.
  3. Quality is also the key concern of overseas businesses. Indian professionals are world renowned for their smartness and talent. They are technically sound and deliver highly qualitative output which is giving utmost satisfaction to foreign clients. Many of Indian firms meet the international standards like ISO and SEI-CMMI.
  4. India has good telecommunication set up in all its major cities thus it becomes easy for offshore companies to communicate with the Indian firms or track the project during development.
  5. The diversity of services provided by IT industry of India is also key factor behind its success. Offshore software development firms in India provide web-design, web-development, custom software development on any language like Java,PHP,C,etc. and any platform like MYSQL,ASP.NET, ecommerce solution, Networking solutions, Web-hosting,SEO services and much more. Company can outsource more than one requirement to the same company which may help client to track projects and negotiate in cost.
  6. Apart from these major reasons there are other factors like stable IT facilities, government policies which has contributed in success of IT outsourcing in India.