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.

Hiring & Profiting From The Offshore Software Development

If companies want to elevate their competition in the market then it is smart to choose offshore software development services. Because of the global economical crisis, the IT managers are in need to find the most affordable means of software development services. Today's businesses are facing the tough competition in the market and to sustain in this competition, they have to use the latest IT infrastructure in their business. Global crisis has forced IT professionals to empower the trend of offshore software outsourcing.

Offshore software outsourcing

However, this is not the only parameter who has played vital role in increasing the global demand of offshore software development. There are other parameters like low rates offered by the offshore software development companies, increasing communication facility like internet platform etc. World wide web provides lots of means of communication between the offshore country and overseas clients. Company who has opted for IT outsourcing can communicate with the offshore development center via emails, messengers, live video chat over VOIP protocol and via personalized chat support software. If the offshore software outsourcing company has developed its own software to chat and transact files with clients then project tracking becomes very easy and secure.

Furthermore, with the technological advancement it is possible to log in to remote PC via a software and administrate the projects. Because of this technological advancement like internet, the developers from developing countries like India, China and Russia got the opportunity to learn the innovative tools, new programming languages and skills and finally become capable to drive the global IT outsourcing market. India is leading in the outsourcing market because of its highest developers resource, effective communication skill in widely used global language “English”, quality development services, professionalism and competitive rates. The companies from Europe, US, UK etc. have realized the fact that instead of investing in IT infrastructure in their own country and paying high wages to domestic developers in the tough economy, it is wise to employ the service of offshore software development company.

Software Outsourcing in India is a Solid Industry with Passion and Commitment

Outsourcing per se is an economical phenomenon that has come into being to reap the benefits of quality work at cheap rates. After Adam Smith's book called “The Wealth of Nations,” the world has changed its perspective regarding work and rates. Hence, in this changed perspective, India has emerged as the hot destination for offshore software outsourcing. Software outsourcing in India is popular because it provides quality work at a significantly competitive rates. Umpteen of software development companies in India have been able to grasp the idea of the outsourcing quickly and therefore, outsourcing sector has flourished to its peak in India. Apart from grasping the concept of outsourcing quickly, India has pool of talents that can deliver the desired results with timeliness and accuracy.

With the privatization in India, it was proved that Indian software development company can stand the global competition and this shifted the focus of global community on India. In earlier phase, the areas of offshore software outsourcing in India were billing, customer service, data entry, software development, internet marketing, SEO etc. It was also due to tempting tax benefits back home that drove the foreign companies outsource their work to India and this way offshore software outsourcing has become the way of life in Indian economy. But, as the evolution too is the way of life, it was realized that instead of setting up sister companies, it was much more better to outsource their work to all those companies that were taking up offshore software outsourcing in India. This would save the foreign companies from setting up and spending money on infrastructure and maintenance of the same. In order to control the operations, most of all the outsourcing countries made it a point to appoint an executive from the parent company to work with those outsourcing companies. This would then also make the operations smooth and transparent.