As software development costs in America continue to sky-rocket, an increasing number of software entrepreneurs are moving in the direction of outsourcing. Outsourcing software development offers multiple perks for software businesses nationwide; the most favorable of which is the lower cost of production. To lower production costs while keeping quality high is every business entrepreneur’s ultimate goal. Why? Because you can sell same great products as your competitors for a lower price.
In the highly saturated and competitive marketplace of software development, outsourcing has become an integral part of every IT business infrastructure in America. Countries like India are well suited for the job. A fairly advanced technology and service industry, a relatively effective capital market economy, a strong private sector and legal base, a skilled workforce, and a good system of higher education are factors that play a crucial role in the performance of Indian software firms on a global scale.
At first, the kind of jobs that were outsource to India were fairly low skill level jobs—like basic programming and call center manning. Today the types of jobs outsourced has shifted from basic skills to more advanced responsibilities like domain knowledge, transition challenges, change management, and HR issues and governance.
If the trend continues, we’ll see more and more American companies across all business sectors begin to send jobs overseas. Boeing planes are already being flown in India. Intel’s market share continues to rise. Major American car companies are now located in India. What was once a fad in the software industry has now become mainstream for a variety of industries.
This entry was posted
on Monday, February 26th, 2007 at 5:18 am and is filed under Software Outsourcing.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
