30 Mar 15
IT Outsourcing : A booming trend
IT industry is growing at an astonishing rate, no matter how small or big a country every nation is getting into information and technology sector which was originally restricted to only developed places like U.S and Europe.
The need of outsourcing arises from the need of finding skilled manpower which is capable of working efficiently and is available at the lowest cost possible. Developed places like U.S.A, Europe etc have a deficit of low cost and skilled manpower, this deficit is fulfilled by countries like India and china which have are both strong economies and have a large proportion of skilled people, willing to work on low cost.
The typical destinations for Information technology outsourcing or ITO are India and china. These two Asian countries are very favorable due to huge amount of skilled personals and low cost to the companies. Philippines, Mexico and Costa Rica are some other popular places for IT outsourcing. India being more preferred due its high amount of English speaking personals.
Outsourcing not only decreases cost, it also reduces risk and the company can focus on its core activities rather than taking up the task of training employees themselves which can be very expensive too. India has an abundance of technically skilled manpower which along with a large portion of English speaking people make it a highly favorable market for BPO’s and information outsourcing. Almost half of the companies in Fortune 500 use Indian software services, placing India among the top 5 countries for offshore outsourcing.
“A lot of people focus on India for lower costs. What is remarkable in India is the caliber of the computer engineers. The cost savings were an additional benefit on top of that” said Larry Ellison, Founder and CEO, Oracle in an interview. Microsoft and oracle have the largest offshore development centers in India. Why India?
• India is Level 5 in Capability Maturity Model (highest ranking for software development maturity)
• Ranked number one location for offshore IT-services by Western IT service buyers.
• Top notch IT infrastructure within technology parks and on major IT campuses.
• Huge amount of skilled manpower
• The decline in rupee contributes to low cost for the companies
• Of the ten leading cities for off shoring according to “The Handbook of Global Outsourcing and off shoring”, six are Indian.
• Skills like project management and business analysis are getting better and better due to the market pressure and more than a decade of experience serving Western IT service clients
• India is the global leader in the outsourcing industry with half of the world’s back office being located here.
• Indian outsourcing revenue at $59 billion for 2011, accounts for 51% of the global offshore market share, says a report from Tholons Research, an advisory firm.
The painstaking work of Indian programmers has gone into innumerable Western products, from cars to Disney cartoons to Microsoft’s Windows range of software and IT-BPO sector provides Total direct employment of 1.98 million people and indirect employment of 7.5 million.
India’s dominance in this field is also helped by global expansion of its $108 billion IT industry and a strong domestic demand for its BPO and IT services. Furthermore a World Bank study in U.S stated that vendors rated India as their number one choice in outsourcing.
iosys is transforming into an outsourcing giant by not only providing quality services but also inducing satisfaction and trust in every client. We don’t just believe in doing what we know right but also understanding the needs of the client and acting on them accordingly with great precision and efficiency.