India, The Main Outsourcing Hub For Global Outsourcing Project
Christopher Wen

Defined Tag: Outsourcing Projects.

India has now become one of the world main outsourcing project software hub for software companies. It is able to achieve this for many reasons. One main reason is India's diversity which gives its labor markets the elasticity to rapidly fill demand for new IT workers, and this makes it an attractive destination for Western firms that might start with outsourcing and then expand into the domestic market. Big companies such as IBM have done that by picking up domestic Indian IT outsourcing contracts.

The growth of the Indian IT services market has been stimulated by multinational companies, such as Microsoft, IBM and HSBC, taking advantage of the abundance of cheap and highly skilled workers. Even with salary increases of 15%, India-based IT professionals still command much lower salaries than professionals in developed countries, and this one of the main reasons for outsourcing project software development to India to be popular. In fact, outsourcing to India is on an ever growing rise. For instance, Accenture plans to increase its India staff this year by 8,000 people to 35,000.

Has India's information technology (IT) outsourcing boom peaked

In recent year however, it's getting harder for all companies to do business in India and to hire and keep the number of employees they need to meet booming demand. This might said to be the death to India IT industry which is solely dependent on body shopping (trading human talents and bodies) and little on actual software products and technology. 

There have been predictions that India will lose most of its outsourcing projects in the next two years. Instances of failures at individual facilities in India, particularly call centers, have prompted some western clients to look for alternatives in other countries. However, from the perspective of a client and a broker, Indian outsourcing centers will still continue to receive the bulk of high quality IT outsourcing business going offshore.  This is due to the fact other countries in the region lack the diversification and global economic connections that India has established.

So if you are looking for affordable and expert professionals to help your business to expand and grow, then be sure to look to India for your outsourcing project.

Christopher Wen is Owner of Small Business Knowledge Base, where he provides essential small business tips, guides, product reviews and tools for your business needs.