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IT Outsourcing

IT Outsourcing

To stay competitive software companies must fabricate plenty of software products for their customers. Such software products are used in giant enterprises such as airlines, financial institutions and banks, multi-national corporations and diverse administrative bodies which have intensive data flows and large data storages. Information Technology software companies in developed countries such as US, Canada and Europe able to take up these projects need both considerable investment in infrastructure and huge manpower to work on them.

In the current situation competition rules the business: each industry longs to never look back and be most competitive. IT software industry is not an exception. To decrease labour costs, IT software companies increasingly delegate their jobs to developing countries in Asia, Latin America, Africa and Middle East. As “cost efficiency” is the paramount goal for IT software firms, the general estimation of IT software jobs being outsourced as of current situation reached almost 50 per cent.

The larger bulk of outsourced jobs is dedicated to development of software in .Net, Java/J2EE, database solutions, smartcard solutions and wireless/mobile application development. Business Process Outsourcing also deal with voice and non-voice solutions, customer care, data management etc. Outsourcing firms employ young and energetic professionals with fluent English. These outsourcing companies charge extremely low hourly rates – sometimes less than $7 an hour which is significantly lower compared to U.S. and other industrially developed countries.

India occupies the leading position in IT outsourcing jobs. The city of Bangalore is currently the so-called Mecca of IT industry. The propitious government policy and substantial investments in infrastructure create the most favourable environment for IT software outsourcing jobs. Outsourcing of IT jobs to India, by U.S., Canadian and European will not only reduce personnel costs but will also help them to become competitive, focus on core competent areas and revel from doing business in tax holiday zones. By delegating IT software jobs, companies can focus more on marketing, advertising, new products launch, hunting new customers etc.