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Outsourcing to India | Offshore Software Outsourcing India: Outsourcing In India: Advantage or Disadvantage

Outsourcing In India: Advantage or Disadvantage

Offshore software development is a type of outsourcing when software development jobs are delegated to overseas countries.

Outsourcing as a term has various connotations but on the other hand is has a great potential to improve company’s bottom line. It helps businesses to stay on the cutting edge of competition in today’s market environment by aiding it to become more responsive to technology changes, to improve quality of products offered, import trendy skill-sets into the company and generally. But, if to opt for outsourcing with little preparation and without a clear view to business, can often be a sure recipe for disaster.

Mainly U.S. companies transfer software development jobs to India or other south Asian countries. India is the home for many offshore development companies. Offshore software development India has some advantages along with some disadvantages.

Advantages of offshore software development in India

India is an overpopulated country so the salaries in India are very low. Along with low salaries Indian software professionals are also highly skilled and proficient persons. Cost efficiency is the main reason for which US and Europe companies delegate their software jobs to India. By offshoring jobs the companies save pots of money. Market researches indicate that typically a US or Europe company saves up to 70 per cent of its software development budget due to offshore software development. The average salary of a U.S. software developer is $90000 per year.

Disadvantages offshore software development in India

But despite all the above benefits, offshore software development in India has some drawbacks. Many businesses practicing outsourcing get real troubles and even fail because of these reasons. One of the main reasons is misunderstanding. Usually new companies can not understand the process of offshore outsourcing and collapse before growing. As for web development outsourcing US organizations found the Indian way of co-ordination and management somewhat lurid.

Risks in offshore software development in India

  1. Offshore software development industry in India is in nascent stage and largely unproven yet. But, already by now we can name lots of success stories which prove Indian offshoring to be the best.
  1. The home situation in Offshore Countries is another risk. India and other south Asian countries are characterized by constant politic and religious activities. And all this much affects Indian economy. We may say that India is also comparatively unstable. Riots in Chennai two years ago caused significant delay of development terms. Some software companies decided to move from Chennai.

First of all offshore outsourcing companies must make sure that offshore software development companies provide business continuity and disaster recovery plans.