Indian offshore software development: Advantages and Disadvantages
Offshore software development is a type of outsourcing where software development work is transferred to offshore countries. Especially companies in the US transfer software development work to India or other South Asian countries. In India there are many offshore development companies. In India overseas software development has several advantages and also some disadvantages.
Advantages of overseas software development in India
India is a densely populated country so labor costs in India are too cheap. Along with cheap labor, Indian software professionals are highly skilled and people are of high mental level. This is the main reason that US and European companies are shifting their jobs in India. By reducing their work, the company will save a lot of money. According to a market research, usually US and European companies save about 70% of the cost of developing their software through foreign software development. In the US, the average salary of a software developer is $ 9,000 per year. In India, the salary of software developers is too little compared to in the US. In India there are generally no employment problems.
Disadvantages of offshore software development in India
There are also some disadvantages of overseas software development in India. Many outsourcing businesses fail for this reason. The main reason is business understanding. Usually new companies cannot understand the offshore outsourcing process and fail before growing. In the case of the US outsourcing web development company found that India’s view of color coordination was somewhat unreal.
Risks in overseas software development in India
1. The offshore software development industry in India is still new, young and largely unproven. But there are also many success stories that prove that Indians are the best.
2. Stability of Offshore Countries is another risk. In India and other South Asian countries, the stability of these countries is less always involved in political and religious activities. This will directly affect the Indian economy. India is also relatively unstable. If we see in the last two years the riots in Chennai have caused a lot of loss of development time and they have also been forced to outsource. Several software companies moved up and moved from Chennai.
Before outsourcing companies abroad must ensure that overseas software development companies have a business continuity and disaster recovery plan. Or if not, offshore companies must be prepared to face the possibility of their outsourcing partners not being available.