Outsourcing Software Development to Offshore Nations
Outsourcing Software Development to offshore nations and service vendors was seen as a cost-cutting approach used by a few big American organizations to offload mainframe maintenance, Information Technology grunt work and Y2K work.
Sep 01, 2006
Now, Offshore IT Outsourcing and Software Development is nearing critical mass with midsize business, fast-growing internet startups, and dozens of major organization are using offshore service provider not for maintenance, but to develop sophisticated new software applications quickly.
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he biggest reason is the shortage of American IT and Software talent. Organizations say it’s almost impossible for finding enough good Software developers or professionals and even the not-so-good ones cost a fortune. In contrast, areas like India and Eastern Europe have access to thousands of Web Programmers, many with .NET, PHP, Java and other Internet-related skills, available for $10 to $45 per hour. So the question is that why one should spend months in search of a second-rate American Software Programmer when one could instantly find a first-rate one Offshore with cutting of the cost?
Among USA’s biggest organization, those using Offshore IT Outsourcing or programming such as Aenta, American Express, U.S. Healthcare, General Motors, Compaq, Home Depot, IBM, Microsoft, Shell, Motorola, Sprint, and 3M. GE uses four major Indian IT Outsourcing partners with dedicated facilities that employ 3,200 workers that develop and maintain General Electric’s systems.
Now days the trend is helping propel rapid growth in the Information Technology economies of the supplier nation. In India, easily the biggest provider of offshore Software Outsourcing, IT exports have grown more than 60% every year for the past 6 years and are expected to reach $88 billion by year 2009, according to a one research report. Some Indian services organizations have become major suppliers in the process, for software development work. Mexico’s Offshore IT income will surge more than 75 percentages to $30 million this year. Now the whole world have seen a steady increase in the use of Offshore Software Programming and IT Outsourcing in recent years, and it is a trend that will continue for more years.
T
he biggest reason is the shortage of American IT and Software talent. Organizations say it’s almost impossible for finding enough good Software developers or professionals and even the not-so-good ones cost a fortune. In contrast, areas like India and Eastern Europe have access to thousands of Web Programmers, many with .NET, PHP, Java and other Internet-related skills, available for $10 to $45 per hour. So the question is that why one should spend months in search of a second-rate American Software Programmer when one could instantly find a first-rate one Offshore with cutting of the cost?
Among USA’s biggest organization, those using Offshore IT Outsourcing or programming such as Aenta, American Express, U.S. Healthcare, General Motors, Compaq, Home Depot, IBM, Microsoft, Shell, Motorola, Sprint, and 3M. GE uses four major Indian IT Outsourcing partners with dedicated facilities that employ 3,200 workers that develop and maintain General Electric’s systems.
Now days the trend is helping propel rapid growth in the Information Technology economies of the supplier nation. In India, easily the biggest provider of offshore Software Outsourcing, IT exports have grown more than 60% every year for the past 6 years and are expected to reach $88 billion by year 2009, according to a one research report. Some Indian services organizations have become major suppliers in the process, for software development work. Mexico’s Offshore IT income will surge more than 75 percentages to $30 million this year. Now the whole world have seen a steady increase in the use of Offshore Software Programming and IT Outsourcing in recent years, and it is a trend that will continue for more years.