Friday, 6 May 2016

Software Outsourcing History of India

The concept of software outsourcing is not new. People have soon released the concept after its competitive advantage has been documented by Adam Smith in his book named “The Wealth of Nations”. This book describes how a company can benefit with reduced cost of labor with outsourcing companies than by working with the developed countries and pay more. India has become a top destination in serving with software outsourcing services to global clients.

India has been considered by the companies due to multiple reasons, like high-quality IT skills, large number of English speaking population, and all these benefits available at an economical labor cost compared to other countries. Sooner, since the inception of outsourcing services came up, India took up the concept and made efforts to attract countries in investing and work with Indian software outsourcing companies. After the private companies have given the access of telecom services, now talking with international companies incur the low costs that is a major contributing factor to communicate with the clients.

Limitless opportunities in India have gained the attention of foreign countries to consider India for its outsourcing services. Earlier, the outsourced projects were solely related to medical transcription which later includes only customer service, billing, software development, data entry, SEO, creative, and many others. Even parent companies have started establishing their sister companies or setting up the dedicated development center in India.

As several companies have already setup in India, therefore these international companies find outsourcing services more cost beneficial. This helps the companies in preventing investing money in labor cost, instead, they can now spend more on their company infrastructure, marketing, brand building, implementing systems, and many more. To have a continuous monitor of actions in sister companies, these parent companies assign their member to control the operations and visit there at regular intervals to gain their insight.

Summary:
Cost and better outcomes are the most common reason why the companies prefer to outsource their projects to India. Outsourcing has gone through major changes and the Indian companies have now focused more on latest technologies, well-trained professionals and world class services.

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