Development of Outsourced Software in India

Generally speaking outsourcing is a process of passing on work or a contract to a third party in order to achieve financial and managerial goals, including reduction of development costs by reducing the labor and operational costs, and also improving the quality of the product by outsourcing the product to different locations as per choice and requirement of the company and the software under development. Outsourcing is also done in order to enhance the time required to develop the software thereby leading to the fast growth rate of the software and technological industries and the fast movement of human race in the parameter of time. A speculation exists that due to outsourced software, the industry is progressing with a triple rate as it would have been progressing without outsourcing.

Most of the software companies are based in developed countries like the United States and the United Kingdom where production cost is very high due to high labor cost and due to the lack of flexibility and professionalism from their employees in their home state, the employees out there do not work overtime and refuse to work in odd hours. In order to meet the requirements of the client, outsourced software is passed to Knowledge based and developing economies like India and China, India being the leader due to the excellent English language skills, along with the strong technical knowledge of its IT professionals. The IT professionals of India amount to over 1 million and the industry contributes to about 7 percent of India’s GDP.

Indian IT professions are high in demand due to their intelligence (average IQ of Indian IT professionals is 135, 20 points higher than the world average and highest in the world), their competency, their professionalism, strong technical knowledge and background, and flexibility in work. Indians don’t mind working extra in order to meet the client’s deadline and they also agree working odd hours while also being highly professional in their approach. Another advantage is that Indian IT professionals charge less money in comparison to their American and British counterparts. These are the reasons why outsourced software development is preferred in India.

Due to the above qualities many software development firms like Microsoft, Google, Yahoo, and IBM etc. have offices in India that develop their outsourced software themselves; however, most of the other companies outsource work to Indian outsourcing and software development firms like:

1. Infosys
2. Wipro
3. Tata Consultancy Services
4. Cognizant Technology Solutions
5. Mahindra Satyam etc.

These companies have development centers all over the world and employ over 1 million people across the globe.