Why India is a favorite offshore software development destination?

India's share of the global offshore softwarethis economic structure is the political, cultural and
development market is nearly about 44%. Indiaeducational infrastructure India has developed over last
exported IT and ITeS services worth more than60 years.
$40bn in the year ended March 2008, a rise of nearlyThe government of India has enabled an ecosystem
20.65% over the previous year. STPI director general,including policies and political environment, which has
N Krishnan, said the all-India tentative IT/ITeS exportsbeen helpful in improving the infrastructure as well as
stood at Rs 2,04,662 crore in 2008-09 as against Rscommunication required for offshore software
1,80,155 crore in the previous year, registering a growthdevelopment services. The government has been a
of 20.65 per cent.great supporter for software firms by providing the
In today’s competitive world, the offshore model isbasic infrastructure required for an outsourcing
viewed as more than just a TCO (total cost ofcompany to thrive thus playing a major role in
ownership) factor. It enables companies to excel atcontributing to the success and well-being of IT
their core competencies while delegating/outsourcingoutsourcing to India.
the other non-core aspects of the business to anOn the cultural level, being a democratic and tolerant
outsourcing partner. The offshore, outsourcing modelculture; Indian social framework has inculcated the
truly enables an ecosystem where everybody winsbasic ingredients required to provide effective services.
including the company, outsourcing vendor and mostAs the base of Indian society is primarily based on
importantly, the customer.co-existence with others, it’s natural when it comes
Besides cost savings, other benefits include formingto extending services to companies all over the world.
virtual teams with exceptional portfolio of workersOn the educational aspect, India has huge reserves of
from around the globe; ability to operate a businesshighly qualified and English speaking workforce with
network with surety of maintaining the compliance ofminimum education as bachelors and masters. The IT
set standards; increased productivity as a result ofprofessionals are highly skilled and qualified in their
having focused professionals working for arespective streams. Some of the Indian universities are
considerably lesser payout; and saving up on logistics,ranked among the top schools in the world.
infrastructure, taxations, specialized resources andWith the internal market booming and the very
management manpower and costs.favorable environment for offshore, outsourcing
What makes India different? India is the onlysoftware development services; Indian software and
developing nation in the world whose economy’sBPO segment is expected to grow at a rate of more
structure is similar to a developed economy structure.than 16 per cent to become a 132 billion-dollar industry
India generates 52% of GDP from services andby 2012.
that’s quite a unique thing. The primary reasons for