Friday 16 December 2011

Benefits of Outsourcing Software Consulting Service and Software Development to India

Outsourcing computer software development services, and related software consulting service, is a recent phenomenon that provoked heated debates in the United States and member states of the European Union. Nevertheless, contracting a reputable software consulting firm in India to conduct less expensive research and development or provide consultancy services is now a widespread practice in the West, with a growing number of enterprises realizing that they can only benefit from lower costs and acceptable quality offered by Indian software developers and consultants.

Traditionally, a large number of well-qualified software specialists graduated in India find a job abroad and relocate soon after graduation. Even so, local universities are able to fill the gap and produce well-trained software experts, hired by local software consultants, which in turn are able to provide extremely competitive services due to the markedly lower labor costs. India-based software development companies now account for over 30 percent of the global market of outsourced software services, with cities like New Delhi, Mumbai, and Pune creating and maintaining the necessary infrastructure to encourage the growth of the local software consultancy and development services industry.

As a result, the country has enjoyed an annual 30 percent growth of its software exports in the past few years, signaling that the exported products are able to compete on equal terms with software solutions provided by leading world software vendors. The low prices are just one side of the coin; demanding Western customers are looking not only for a less expensive consulting service but also for a quality one, while specifics of India’s labor market allow local enterprises to hire well-educated and trained experts and nonetheless offer competitive prices. Thus, computer software development services obtainable in India allow for marked cost savings through off-shoring of this otherwise expensive process.

Evidently, a software consulting firm in India is able to provide competitive prices but access to intellectual property and IT knowledge and expertise is a new driving force behind Western companies’ desire to outsource to India. Local universities and research centers enjoy good reputation in the field of information technologies while both academic and non-academic research centers compete for orders in the sphere of software development services. Such a healthy competition additionally lowers prices, without lowering the overall quality of services provided, and gives the West an opportunity to hire local talents without paying the high price for getting similar services at home.

The use of worth-hiring software consulting service usually requires a significant financial effort in the Western world, while Asia/Pacific software consultants have developed and apply wide-accepted best practices and possess operational expertise that can hardly be developed in-house by the vast majority of small and medium sized Western enterprises. Thus, contacting a software developer or consultant based in India looks like a reasonable move for business owners that have trouble sustaining their competitive advantage or abilities in the field of IT.

Computer software development is a relatively expensive service as well as customization of existing software solutions. Implementation of new business software like customer relationship management (CRM) or enterprise resource planning (ERP) systems requires significant investment and can be extremely time consuming, resulting in even higher implementation costs. Therefore, outsourcing the whole or part of the process to external consultants is a wise move whatever the case may be. Getting software consulting service provided by an India-based company can prove to be the best fit for both large corporations and small and medium sized businesses that want to get access to IT expertise at affordable prices.

15 comments:

  1. Interesting post!
    There are lots of benefits of outsourcing software consulting service and development. You could have a very skilled team. And usually, having a great team of software developers, they make it a point to acquire the skills necessary to service the ongoing advances in technology.
    But the main reason why companies outsource this kinda service, is to cut cost. The savings can be substantial because you will only pay for the services on a per project basis.
    One good tip though, you have to understand your companies work philosophy. If they aren’t willing to work in your world then you need to figure out immediately regardless of how well suited they are for the position as it will only create problems in the future.

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