Offshoring to India-a reality check!


Offshoring is an excellent way to lower operating expense and boost productivity levels. But there are certain challenges that need to be addressed before jumping on the off shoring bandwagon. The first question to ask is, whether the cost savings projected are based on reality or is it just a myth? While operating costs can certainly be lesser else where, you need to look at quality and feasibility. In India the labor costs are 30-50% lesser for software services as compared to US and Europe. The cost savings does not affect the quality of work as expected in usual off shoring scenarios. In fact, there are numerous offshore software development companies that are CMMI level 5 certified and ISO 9001 certified. Combine this with the continuously improving infrastructure along with top notch connectivity capabilities and you have the recipe for a successful offshore partnership.

Offshore software development and IT services is one of the fastest growing sectors here. The primary reason for this is the availability of a large pool of qualified professionals who have exposure to the international work ethic. In terms of project management too, the customer satisfaction levels with projects and its overall management is higher for ones executed in India. Whether it be the quality of delivery or the meeting of delivery commitments, Indian companies show a greater success ratio. One of the reasons could be that better project management models like Agile, XPM etc. is actively utilized for project management. India also boasts of an ecosystem of service providers who can handle mega projects as well as domain specific niche services. The plethora of benefits offered by India is currently unmatched and will remain so for the coming years.