Software Outsourcing: A Western Dilemma or an Opportunity ?

According to the study, only four countries - India, Ireland, Canada and Israel - are capable of scaling up to meet the demands of large-scale projects in offshore software development.

Online PR News – 15-June-2010 – – Unlike business process outsourcing (BPO) and information technology outsourcing (ITO), which are mature business models, the software outsourcing and offshore outsourcing business is relatively new. According to a Gartner study, the most successful hub for offshore software and software development outsourcing is India. Globally, according to the study, the Tier I Cities for software outsourcing are: Bangalore, Yerevan, Mumbai, Ahmedabad, Bucharest, New Delhi, Hyderabad, Chennai, Pune, Indore, NOIDA, Gurgaon, and Thiruvananthapuram.

The Western Dilemma: The global economic crisis has deeply affected especially Western countries and it is estimated that they will take a minimum of five years to recover. While they have tried to retain their advantage in technology, there are problems:

The USA and Canada producing a little over half the required number of graduates in science and technology

A large number of their MS and PhD students are international students who are likely to return to their countries

Mostly, the Western countries have aging populations, and executives in senior positions are heading towards retirement

While these countries are recovering, they are still lagging in the kind of growth and business competitiveness that they had in pre-economic crises days. The productivity gap between them and smaller industrialized nations continues to widen, every day.

The Software Outsourcing Solution: The solutions to the human resource problems faced by startups, emerging and established technology companies and IT enabled organizations in the West are not possible in the short term - even immigration is a long and difficult process. This makes offshore software and software development outsourcing a viable solution for Western countries.

Some benefits of offshore outsourcing for software and software development are:

Cost effective, especially in tough economic times

Timely maintenance and service

Internationally qualified specialists in software and software development

Offshoring and outsourcing leaves clients free to focus on their core businesses, which could be manufacturing, hospitality, sales, etc.

Scalability

Offshore outsourcing for software and software development has gained acceptance in most Western countries and is already a US$65 billion industry, predicted to grow rapidly and contribute to effectiveness, productivity and competitiveness to organizations around the world.

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