Cost and quality benefits play a positive role in making India a choice destination for outsourcing of technology. According to a study conducted by Forrester Research in November, 2001, India's edge over other competing nations in the IT outsourcing and remote development business is based on the country's decade old experience in this area, fluency in the English language, corporate friendly atmosphere created by liberal policies of the Government and above all quality consciousness of the industry.
Following are the criterions for choosing India as a preferred outsourcing location
- quality and cost of labour
- language skills
- telecom bandwidth
- cost and reliability
- political stability and the enforceability of contracts
- the general maturity of the business environment
- senior management's comfort in operating in different locations.
Today, there is a greater focus by MNCs on the Indian IT outsourcing and remote development market. While a large number of companies are outsourcing their software development to Indian companies, others are establishing a presence in India and participating actively in the software export arena.
India can be an ideal offshore destination for remote development, remote programming and IT outsourcing due to a number of factors some of which are categorized above. India offers significant strengths in the areas of remote development of software and IT outsourcing.
What are the advantages that businesses gain from offshore outsourcing?
Today's organizations must find ways to cut costs, obtain higher productivity from skilled resources and have in place best practices, de-risked business through diversification, and accelerate time-to-market for products and services.
Offshore outsourcing helps companies meet these objectives by providing:
- cost reductions
- large pool of qualified talent
- focus on core business
- improved service quality