The Value Proposition for Offshore Development in India
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The
case for locating offshore resources in India is
driven by a strong economic value proposition.
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Dramatic
cost savings: Fully loaded costs for offshore work
in India are 30-50 percent lowers than those in
the U.S. and Europe, after factoring in increased
expenses for telecommunication, infrastructure,
and integration. Many companies have captured sizeable
savings by Offshoring development/maintenance for
mature products and executing custom software projects. |
| Faster
time to market: Indian offshore development allows
companies to reduce the time required for conceptualization
through marketing of the product. Time reductions
result from 24/7 development cycles, rapid ramp-up
through access to a large pool of resources and
faster learning curves in some areas resulting
from past experience. |
High quality: Most IT services companies in India
have a successfully tested methodology and have
in-built quality standards for their development
processes.
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Large
technical talent pool: India has the largest English
speaking IT talent pool in the world. Over 120,000-trained
IT professionals are being added to the Indian
talent pool yearly compared to 25,000 in the US.
62 percent of this Indian technical workforce has
more than four years of experience and over 70
percent has an engineering degree.
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Opportunity to leverage
Indian platform for additional activities: An
Indian center and its high quality technical
talent can also be
used for other IT-related activities such as core
R&D, developing value-added applications around
the core product, and for localizing products to
access regional markets. |
| Factors favoring the Indian
invasion in Global IT market at a glance. |
High competent trained
workforce
Low labor costs
Appreciation for software development disciplines
Wide spread use of English Language
Good practices for documentation, communication,
sign- offs and revision Scalability, guaranteed delivery-
underlined by stringent quality standards.
Quantitative as well as qualitative process
tracking- mechanisms to keep an eye on code size,
number of- modules completed number of defects found
and tests- completed. |
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