The Value Proposition For Offshore Development in India
The case for locating offshore resources in India is driven by a
strong economic value proposition.
Dramatic cost savings. Fully loaded costs for offshore work
in India are 30-50 percent lower than those in the U.S. and Europe,
after factoring in increased expenses for telecommunication, infrastructure,
and integration. Many ISVs 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. For example, 22 out of the 37 SEI CMM level 5 certified
software companies are in India. In addition, 140 ISO 9001 certified
software development companies also exist in India.
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.
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.
IT is a major thrust area for the Government of India
- IT is one of the Government of India's top five priorities.
- The National IT Task Force submitted its 108 point Action Plan
to promote IT in the country. The Government of India has approved
the plan and is in the process of implementing it.
- A separate Ministry of Information Technology was set up to
expedite swift approval and implementation of IT projects and
to streamline the regulatory process.
- Information Technology Act 2000: The Information Technology
Bill that was passed in the Indian Parliament in May 2000, has
now been notified as the IT Act 2000. The IT Bill brings E-commerce
within the purview of law and accords stringent punishments to
"cyber criminals". With this, India joins a select band
of 12 nations that have cyber laws.
India has a stable democratic government and is one of the world's
10 fastest-growing economies
- Fifty five years of democracy
- Economy expected to grow by 8 percent in 2002-2003
- Indian service sector contributes a massive 51 per cent to India's
GDP.Within this category, the most promising is computer software
export, which grew at an amazing rate of 40-50 per cent every year.
- Excellent investment potential: India ranked third in Asia,
just after Japan and China, in terms of investment potential for
the next 10-year period in a study by the Export-Import bank of
Japan.
- Privatization of the infrastructure sector
- A convergent network is being created by the intertwining of
the ISP, Telecom, VSAT, Cellular and networking sectors. India's
large business houses and Public Sector Units are working towards
creating greater bandwidth availability.
e-Zest Solutions is proud to be an Indian Offshore Development company,
which effectively leverages these enablers to provide "best-in-class"
offshore software development services to you out of India. Our past
experience with our international clients from USA, Germany (Deutschland)
, Belgium, UK, France , Australia, Switzerland and Spain makes us
very confident that we will deliver the best possible quality, at
significant cost savings to you, every time!