India is the foremost name when it comes to a developing country that has risen to a top catch name. The major contributors to the Indian outsourcing industry are the US and Europe and it accounts for 60% and 31% respectively of IT and BPO exports. Indian software outsourcing has been able to increase the InfoTech and BPO export sector to $ 47 billion and capture more than half the offshore outsourcing industry.
India saw the rise of software industry in the mid 1980s. Aided by the dot com boom in the 1990s, the industry witnessed a massive growth. Preparation to fight against the potential Y2K bugs gave a major boost for the Indian software industry. Although in around 2008-2009, there has been a negative impact on the growth of software outsourcing to India due to global recession, but the IT sector has witnessed a sharp recovery in around 2010-2011 and the offshore software development companies in India is likely to witness double digit growth rates in 2011. India has become the central hub for software development services for most of the global clients across the world. There are many reasons why global companies prefer Indian software development companies; some of them are given below:
Cost compensation: Global companies can significantly do a direct cost savings by outsourcing to offshore software development company India. A salary, which is considered to be the biggest component of costs, is approximately one tenth of the cost as compared in the US and Europe. Whether it is web development, web application, software maintenance, human resource outsourcing, or client servicing, - employee compensation forms one of the largest cost component for any outsourcing operation. Annual salaries fluctuate across cities and skill levels, but typically an Indian software developers salary would range lesser as compared a software developer in US where the salaries would fall in larger bracket.
5.Infrastructure Cost: Cost of most Indian outsourcing operations would have a comparatively much lower office occupancy cost as compared to the office occupancy cost in the US.
6.English speaking workforce: India is an ideal destination not only for the cost savings it offers to global companies, but also because of its English speaking workforce. India has approx. half a billion English speaking workforce, which again forms almost thrice the size of the US workforce
7.Education and Skills: The prime reason, why India is a favorite destination as software development company is because of the availability of educated and skilled workers. India produces approximately 3 million graduates every year, which is similar to that of the US.
8.Technological inclination: Indian resources have relatively better technological inclination as compared to any other countries in the world.
Thus, to summarize the key benefits of offshore outsourcing to companies in India lies in low employee cost, less infrastructure cost, high educated and skilled labor and techno savvy work force. Apart from these reasons adherence to leading quality practices by Indian outsourcing companies, timely delivery backed by superior customer servicing and vital government economic and political support provides a suitable environment for the ever growing software industry.
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