| Offshoring software development to India is not a new | | | | What we have to look after is: As the software |
| phenomenon. Indian companies now dominate the | | | | sector has evolved so has the cost advantage, which |
| outsourcing industry. Talented software programmers, | | | | is decreasing. Though software development is still |
| the highest number of certified companies, several | | | | carried out at a fraction of what it is in the US and |
| Indian IT companies listed on the NYSE and NASDAQ, | | | | several other countries, employee costs have risen |
| a large number of Fortune 500 companies outsourcing | | | | considerably. This is likely to affect margins and |
| their software needs to India are all well known facts. | | | | consequently profitability. |
| Now Indian developers are moving up by offering | | | | However, there is no dearth of talent and expertise in |
| more specialized services as their comfort level in | | | | the country and many companies are opening centers |
| dealing with global customers has grown and their | | | | in smaller towns and cities and helping to develop the |
| extensive experience in this area has allowed them to | | | | software industry in these places. |
| showcase their potential. | | | | Also considering the high quality of the solutions |
| Initially there were only certain parts of the software | | | | provided as well as the success of custom software |
| development process that companies were | | | | development where Indian companies design creative |
| comfortable outsourcing. | | | | unique solutions, companies wanting to outsource will |
| Coding was seen as a relatively easy part of the | | | | still find India an attractive destination. It would appear, |
| process to outsource and was not high skilled like the | | | | however, that this practice is here to stay. Offshoring |
| design phase. Having expanded the gamut of services | | | | can be contrasted with outsourcing and offshore |
| they offer, Indian software providers along with | | | | outsourcing which implies that a third party service |
| creating software to suit specific requirements have | | | | provider takes over the business process and runs |
| also, through their experience, developed structured | | | | them based on service level agreements. The advent |
| methodologies, procedures, and documentation that | | | | of the internet has created new opportunities for |
| gives their customers a competitive advantage. | | | | freelancing, particularly for software developers from |
| Indian offshore product development companies are | | | | countries with low average salaries, such as Bulgaria, |
| constantly improving standards, ramping up their | | | | China, India or Romania. When such transfer includes |
| employee base, and opening development centers and | | | | materials, as confidential documents and trade secrets, |
| sales offices abroad in anticipation of a higher demand | | | | protected by non-disclosure agreements, then |
| for their constantly expanding range of services. | | | | intellectual property has been transferred or exported. |