4/10/2006

India is not getting expensive for Software Outsourcing services

According to the latest survey India is not getting expensive for Software Outsourcing services. India and China two of the IT giants are known for the most economical IT Outsourcing service globally. Both the countries are almost running equally as far as software services are concerned. No doubt India has bit upper hand than China in some specific areas. China also has a wide share of the software market place though India is leader for Software Outsourcing services and facilities. Lots of MNCs have their presence in both of these hot destinations for IT Outsourcing services. Both the countries also have wide pool of talents and big brand names with them for the software services to the global market.

Though there are some Information Technology companies that believe that India is getting bit expensive for IT services to the market. They find that the service providers and talents are now charging higher for the services they provide to them. They think that development cost in India is on the move now and this might lead them to find some other destination for the development services. No doubt that India has the best pool of IT talents and professionals for any of the complex application development services, but for last six to eight months it is marked that development prices are increasing and IT companies from America or Australia are not finding the same charm any more in this destination for the development services.

Software Outsourcing cost

But this assumption of these companies about the increment in Software Outsourcing cost is wrong. India is the country having one of the largest markets and pool of talents for Offshore Software Development problem solutions and services to the global market. The assumption “India is gradually becoming expensive” seems to be wrong as lots of Australian companies have their call-center services here. And gradually this no. is also increasing. These companies are making almost 50% to 70% cost cutting by IT Outsourcing services to India. Big IT giant like IBM also has its highest Offshore Software Development stake in India.

These are some of the facts that indicate that popularity of India in the global IT market for Software Development services. This figures and likeliness of these companies indicates that India still provides the same qualitative Software Outsourcing service with the same lower price as it used to provide. Still IT companies from US and Australia find that high turnover ratio in India is leading the hike in the price of the services. Some of the companies who have their presence in India indicated that they are now planning to shift to China for the same services as it is the competitor of India for Software Outsourcing services globally.

No matter whatever these companies state about the pricing policies of IT Outsourcing to India. India is still no. 1 for these services to the overseas companies and will also remain on the same spot for years for dedicated, qualitative and lower cost Software Outsourcing services.