Offshore Software Development Center |
Posted: September 8, 2021 |
Offshore software development is the buzz word for today. India is emerging as a super player not just in offshore software development, but in all vertical markets. Offshore software development companies are coming up every other day and giving a tough competition to the established players of the market. In this ongoing series, we will discuss about Offshore software development India. The story revolves around two cities; Delhi and Mumbai, the home of most offshore software development companies in India. The story begins at the heart of India, in the city of New Delhi. The capital city of India has been a global hotspot for IT and Outsourcing services for decades now. With the changing scenario and more demand for the developed world nations, the demand for the services of an Indian offshore software development center has grown manifold in recent times. There are many reasons behind this. One is that there is no dearth of skilled professionals from the north, and secondly the infrastructure offered by the Indian government (read: government has got woefully inadequate in the recent years) is simply commendable. If we dig a bit deeper, the reasons for outsourcing in India become obvious. For one, there is a shortage of skilled labor in the southern part of the country. This is where the IT and BPO companies set up a base to take advantage of the labor force in that region. In addition, there are several small and medium businesses, which cannot afford to have their own in-house project management systems. Hence they outsource it to the offshore software development company of India. The third reason is the huge cost differential between the north and the south, and the consequent rise of the offshore software development company in India (in favor of the northern business houses). To understand what the significance of this phenomenon is, one has to understand what the project management system is all about. In case of an IT or BPO company, the project management system is a web application. This application facilitates communication between the management and the various projects and departments. This also enables the management to monitor the progress of each department on a regular basis. If we study the success of the organizations that outsource to the east, especially to the south of India, we can easily draw the conclusion that the reason for their success is that the service providers in India to deliver services at a very high-speed. Moreover, every project is managed by only a single person (from the company's end), which eliminates the scope for other departmental managers to waste time trying to monitor the progress of the entire project. When we discuss the role of the offshore software development services provider, then the first thing we need to clarify is why should one outsource to another country (outsourcer) rather than self-development within the organization? It is obvious that in the case of BPO companies, the processes are very complicated and usually involves a lot of technology transfer from the west. Hence, the processes have to be quite flexible so as to meet the different requirements of different clients. Thus, they need constant monitoring and modifications. A project manager has to constantly convince the client why the process needs to be modified, or why it should be stopped completely. Since the IT outsourcing companies from the east have the requisite expertise in this regard, it is possible for them to convince the client. Another major advantage of IT outsourcing to the east is that the software company from the east will be outsourcing all the web solutions from the prime locations in the world. The prime locations for web solutions include India, US, UK, China and various other countries. This gives the Indian IT professionals ample opportunities to develop web applications from the local resources available there. There is another significant factor that makes India a hub for offshore software development center. This factor is the availability of large labor force in the country. The population of the country is aging but still this huge labor resource provides enough manpower to support the projects that require huge investments in terms of man-power. Therefore, there is no problem in recruiting personnel from the western countries. This is why India has emerged as the best offshore software development center for medium businesses across the world. Finally, India is a cheaper destination for setting up the IT project management system. India is not facing any monetary crisis and the cost of setting up the IT infrastructure for an offshore software development company in India is not much higher than what it is in the west. There is no question of over-investment. In fact, the capitalization for setting up a medium to large business project in the west is very high and it is difficult to sustain such expenditure. However, in India, setting up an IT project management system costs less than what one may expect in the west and one can sustain the expenses by leveraging the human resource available in the country.
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