OUTSOURCING – India as an option

Organizations are realizing that they cannot be all things to all people. As a result, organizations are focusing more on their core competencies and relying on service providers to manage critical but non-core processes for them. 

The Indian software industry has the potential to become one of the largest in the world and is attractive to overseas vendors as a rapidly growing market. The modernizing Indian economy will further stimulate the demand for software products of international quality for various business and industrial sectors. 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 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 companies in India

It is not surprising that corporate giants in the United States and European are increasingly looking at 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 is considered as the most favored location as it has a strong supply of High-programming talent coupled with favorable government policies for the IT sector , tax incentives, the ability to complement U.S. time zones with a virtual around-the-clock approach and vast improvements in infrastructure like Telecom .

Until recently, outsourcing software development to offshore suppliers was seen as a cost-cutting approach used by a few big U.S. companies to offload mainframe maintenance, Y2K, and assorted IT grunt work. Not anymore... 

Now, offshore outsourcing is nearing critical mass: Fast-growing Internet startups, midsize businesses, and dozens of major companies are using offshore suppliers to develop sophisticated new applications quickly. 

Key benefits in outsourcing to India :

  1. Access to leading practices: external service providers give companies access to an extensive, highly specialized knowledge base. 

  2. Clearer strategic focus: allows managers to focus on core competencies and strategic issues rather than on routine, time-consuming activities.

  3. Better resource allocation: can help shift the traditional focus from transactional activities and reporting to the delivery of forward-looking information and value-added business analysis. 

  4. Improving service quality and productivity: reduce response time, deploy solutions faster and improve system availability. 

  5. Improve performance: maximize the performance of an organization’s enterprise client/server computing environment through the use of the latest technology and an outsourcer's performance management tools and expertise.

  6. Entering into strategic relationship with an Indian partner: helps to harvest the benefits of an already established center in case of joint ventures or low operation cost in case of establishing own facility in India.

Areas of outsourcing :

  • Custom development 

  • Consulting

  • Software testing 

  • Call Center 

Summary :

Software Outsourcing opens a channel towards a wider skill pool while maintaining flexibility in Resource Allocation. This enables client to free internal resources for higher value added projects, thus helping them to focus on their core business. India as the offshore outsourcing option represents an ideal software outsourcing destination capable of addressing the 4 Key requirements: Telecom Infrastructure, Large and Growing Talent Pool, Time Zone Advantages, Favorable Economics and Quality with continuous measurement.