Agreement between U.S. and India opens skies to help IT Outsourcing

In April 2005, an agreement between U.S. and India opens skies to help IT Outsourcing. Both the countries are expected to lower costs and improve efficiency and best quality for Indian outsourcing firms and U.S. firms with Offshore Software Development in India, according to industry news. The agreement between two countries also gives American airlines access to more Indian cities. This agreement would eliminate current flight availability constraints and problems regarding services, as more airlines are likely to establish transmits between the cities of these two countries.

Presently, traveling to Hyderabad from San Francisco is very hectic schedule and route for the passengers. Establishment of this service would definitely bring lots of flexibility and speed for IT Outsourcing and other services between these two countries. Agreement involves more flights, lower tariffs, and stronger economic ties between India and U.S. The existing agreement between these countries restricts the no. of airlines that could fly between India and U.S. This agreement allows unrestricted service by the airlines from each side and would provide lots of facilities without restrictions on how often carriers fly to any places to IT Outsourcing in many ways. If the new agreement between these two countries is effective in increasing the supply of air services, tariffs are also likely to come down by almost 20%.

IT Outsourcing services

Because of this agreement between these two countries IT Outsourcing services and vendors from India also expect an improvement in productivity, and faster response time to clients needs as a result of the agreement. The U.S. is the largest market area for IT Outsourcing for India. In last fiscal year, about 70% of the revenues of these IT corporations came from the U.S. only. On the other side Offshore Software Development in India is considered to be the one stop solutions for IT companies of America.

Travel is one of the most important aspects for any of the business for overseas services. Flexibilities in travel help in both from a business development viewpoint and from an implementation standpoint. In present scenario it is found to be very expensive for the companies for transportations. Companies find that they are losing on productivity, timings and top management services because of this inconveniency. They also find that sending IT services overseas some times become hectic schedule for them and they loose some of the opportunity costs because of that.

In short the agreement between these two countries will open lots of new ways for services and opportunities for both the countries. Reduction in time and cost in IT Outsourcing is also expected by this step from both of the countries.