Thursday, August 9, 2007

Outsourcing Software - Go For IT!

Without the outsourcing of their software development, there are many international conglomerates which would be facing dwindling profits and angry shareholders. All the software giants, including Microsoft, Oracle, IBM, and Dell have taken to outsourcing software development in a big way, and their favorite outsourcing partners are Indian companies. Wipro, TCS, and Infosys are recognized as IT companies perfectly capable of handling the outsourcing needs of the big software players on the other side of the globe.

Outsourcing Software Needs To India In the early days of outsourcing, the typical outsourced business project was a non-core operation which was deemed too insignificant to be done by highly paid in-house employees. There were many Indian companies happy to take on these outsourced jobs, but as the Indian workforce became more and more versed in IT management, the Fortune 500 companies bagan to see them in a new light.

Today more than half of the Fortune 500 companies turn to Indian IT firms like TCS and Wipro to design, alter, and maintain their IT systems, and the Indian IT companies have seen their balance sheets and market capitalizations reflect the results. With over two billion dollars in annual revenues, and a market cap exceeding twenty billion dollars, the Indian companies are now in the same league as Adobe and Accenture.

Small Businesses Can Outsource Software Needs As Well

But outsourcing software needs is not limited to the mega-software companies; today there are hundreds of smaller businesses looking at outsourcing as an attractive alternative in their struggle to decrease their expenses and get technological input which their in-house staff might not be capable of providing. When outsourcing their software needs, these companies can choose to turn some, or all of them over to developers in other parts of the world, and may outsource different parts of the same software project to different IT service providers.

Business process outsourcing; software development outsourcing; knowledge process outsourcing; all are IT outsourcing projects which, while they can be done by a company's onsite employees, are simply less expensive when turned over to qualified IT workers in countries with lower wage structures and taxes.

The market for software is going to continue to expand, and software development is the future of the IT industry. Outsourcing software development to proven IT companies in developing countries like India whose workers have established themselves as the equal of any IT workers in the world will keep software development costs low, and the prices of the most advanced software within the reach of the businesses which continue to depend on it.

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