OUTSOURCING MODEL

Today, Offshore Outsourcing is the modern business approach of outsourcing assigning some of its commercial activities to expert offshore companies in order to fetch better quality, cost and technical excellence than what is available domestically. Rather than spending money on developing and maintaining certain non-core activities, businesses can outsource them to offshore experts and get quality work at much lower price.

Partner, one of the world's largest research and analysis organization, has predicted that total global offshore spending on outsourcing IT Services will reach $50 billion by 2007. The report has also mentioned that emerging countries like India, China, Brazil and Russia possess required capabilities in terms of labor, technology and infrastructure to undertake IT related outsourcing activities successfully.

"Offshore Development" in the IT world is the term most often used to describe the business of outsourcing software programming, web and multi-media projects to contractors or wholly-owned facilities located in foreign countries with lower labor costs. India is the largest provider of such services, estimated to be worth $6.3 billion in 2000-2001.
You know the reason behind India being the main destination for IT-enabled services for major global companies?

Here they are :

• India has a virtual 12-hour time zone difference with USA and other major markets for IT-enabled Services
• India has a huge pool of English speaking and computer literate graduate manpower, who will continue to cater to the growing demand for professionals for IT- enabled Services. These professionals are skilled as well as quality conscious.
• Cost of qualified personnel is amongst the lowest in the world. India provides an income tax holiday till 2010 for export of IT-enabled Services.
• Many State Governments in India offer special incentives and infrastructure for setting up IT-enabled Services.
• India enjoys a very strong brand equity in major markets, thanks to its growing and globally competitive software industry.
• More than 185 of Fortune 500 companies already have offshore centers in India. Therefore vendors in India are used to dealing with the requirements of an offshore initiative.