Why India is a Favorite Offshore Software Development Destination

Posted on September 27, 2017 in Uncategorized

India’s share of the global offshore software development market is nearly about 44%. India exported IT and ITeS services worth more than $40bn in the year ended March 2008, a rise of nearly 20.65% over the previous year. STPI director general, N Krishnan, said the all-India tentative IT/ITeS exports stood at Rs 2,04,662 crore in 2008-09 as against Rs 1,80,155 crore in the previous year, registering a growth of 20.65 percent.

In today’s competitive world, the offshore model is viewed as more than just a TCO (total cost of ownership) factor. It enables companies to excel at their core competencies while delegating/outsourcing the other non-core aspects of the business to an outsourcing partner. The offshore, outsourcing model truly enables an ecosystem where everybody wins including the company, outsourcing vendor and most importantly, the customer.

Besides cost savings, other benefits include forming virtual teams with exceptional portfolio of workers from around the globe; ability to operate a business network with surety of maintaining the compliance of set standards; increased productivity as a result of having focused professionals working for a considerably lesser payout; and saving up on logistics, infrastructure, taxations, specialized resources and management manpower and costs.

What makes India different? India is the only developing nation in the world whose economy’s structure is similar to a developed economy structure. India generates 52% of GDP from services and that’s quite a unique thing. The primary reasons for this economic structure is the political, cultural and educational infrastructure India has developed over last 60 years.

The government of India has enabled an ecosystem including policies and political environment, which has been helpful in improving the infrastructure as well as communication required for offshore software development services. The government has been a great supporter for software firms by providing the basic infrastructure required for an outsourcing company to thrive thus playing a major role in contributing to the success and well-being of IT outsourcing to India.

On the cultural level, being a democratic and tolerant culture; Indian social framework has inculcated the basic ingredients required to provide effective services. As the base of Indian society is primarily based on co-existence with others, it’s natural when it comes to extending services to companies all over the world.

On the educational aspect, India has huge reserves of highly qualified and English speaking workforce with minimum education as bachelors and masters. The IT professionals are highly skilled and qualified in their respective streams. Some of the Indian universities are ranked among the top schools in the world.

With the internal market booming and the very favorable environment for offshore, outsourcing software development services; Indian software and BPO segment is expected to grow at a rate of more than 16 per cent to become a 132 billion-dollar industry by 2012.

Features of Software Development Outsourcing in Belarus

Posted on September 25, 2017 in Uncategorized

Outsourcing is an effective cost-saving strategy when you contract with another company (usually foreign) or person to do a particular function. There are many benefits from outsourcing, for example it lets organizations hire the employees for performing certain tasks and pay only for them. There is no need to hire and train permanent staff. Outsourcing pays off because you can choose from experienced and reliable specialists worldwide. Besides transferring external staff helps to handle the peak loads easily.

The software industry is one of the most quickly developing and growing areas, that is why companies feel the need for hiring qualified staff. That explains why more and more companies (such giants as Motorola, Oracle, and Microsoft) are taking advantage of outsourcing nowadays.

Certainly, there is the other side of the coin. The success of business depends heavily on the country chosen for outsourcing. Many companies in the USA and Europe prefer to transfer software development job to Russia, Belarus, Ukraine and India. This article covers the pros and cons of software outsourcing in Belarus.

Advantages of software development outsourcing in Belarus

Human resources

Historically in Belarus there are many universities and institutes that provide free higher education. Therefore many young people have an opportunity to get it. But the applicants have to go through very strict selection procedure and then make the best efforts to have the highest results. Therefore the traditional education is on a very high level and the students become really high-level professionals.

Also there are many new private institutes. Their education program is more flexible and can quickly react to any requirements of the market. Nowadays they make the main emphasis on IT-specializations like developers, designers, testers, analysts, etc.

It is important to realize that higher education in Belarus means not only deep knowledge in the chosen specialization but also lateral thinking and capabilities to solve complicated and intensive tasks. That is why the Belorussian developers are known as the experts with broad-based knowledge who are able to provide top-quality products.

Rates

What is the most important thing for the customer? Without a doubt, the goal is to get the highest quality product at a low price. The cost of software products made in Belarus is much less than the one in the USA or in Western Europe. Firstly, the average rate per hour is much less here; secondly, the Belorussian developers can perform many types of qualified work – one person can be a developer, a business analyst and a manager at the same time. Also personal responsibility is very high here so the customer is absolutely sure that his/her money won’t be wasted.

Geographic location

Belarus is situated exactly in the center of Europe. The neighboring countries are Poland, Lithuania, Latvia, Ukraine and Russia. The country has good transport connections with many European capitals and there is no problem to reach almost any point of Europe in two or three hours. As for more distant countries, one can be there in a couple of hours if he takes a connecting flight in Moscow.

The approximate flight time from Minsk (the capital of Belarus) to Moscow is 1 hour and 30 minutes, to Vilnius is 40 minutes, to Paris is 3 hours, to Prague is 1 hour and 45 minutes, to Berlin is 1 hour and 50 minutes.

Therefore such favorable location of Belarus allows having private meetings with the team in different countries when required.

Time zone

Belarus has the same time zone with many European countries. Belarus is in the Eastern European Standard time zone. EET is only 3 hours ahead of Greenwich Mean Time It allows to be constantly in touch and to resolve all working problems online.

The time difference between Belarus and USA is 7-11 hours. And this difference is very favorable to the American customers as it allows them to give the task before the night and receive the work done in the morning. As they say, you sleep but the work goes on! Under such conditions the work is performed even faster and more efficiently than it could be done in one time zone.

Mentality

There’s no secret that good communication and sympathy are the key to success. Misunderstanding and cultural gap are the problems which often arise in an international team. The difference of mentality and the language barrier can destroy any great idea.

Belarusians are known for their intelligence and politeness. They live just in the heart of Europe and have European mentality. Also good English skills are one of the most important parts of higher education here. Choosing outsourcing in Belarus, the customer can be sure that he/she will have no problems with communication with the team.

Disadvantages of software development outsourcing in Belarus

In fact, Belarus does not have any specific disadvantages of software development outsourcing, but one can come across some general problems. Such as:

  • Doing business with an inexperienced partner

Although there are many stories with a happy end in software outsourcing, some new start-up companies don’t understand the specific aspects of this process and fail to meet the deadline. As a result, a customer doesn’t get the quality product on time.

  • Loss of confidentiality

Since business secrets and other proprietary information can make or break the success of your company, you shouldn’t leave their protection to chance. Unhappily, it is very difficult to protect the secrets from leaving the company in outsourcing business. The customer should not take the employee discretion for granted and choose a reliable outsourcing company.

Thus, one of the most important criteria for choosing a partner company for outsourcing should be an assessment of the company’s reliability, experience and good reference from other customers.

To minimize the risks, the good solution is to organize the pilot project with the potential software development outsourcing company. It helps to understand if a large-scale project might work in practice. Only when you have success with the pilot project, you can trust the company to implement your ideas.

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Offshore Software Development

Posted on September 24, 2017 in Uncategorized

Developed countries like USA, UK, Germany etc, had been monopolizing IT initiatives. IT development in these nations kept taking quantum jumps every now and then, culminating in the present excellent position of use of IT tools and softwares in every sphere of activity, be it business, ecommerce, international trades,knowledge dissemination and education. But this did not last long. Big corporates in these nations were already looking for cheaper ways of developing IT applications. Prohibitive cost of labour, non-availability of skilled labour and huge funds outlay for developing more IT infrastructure, acted as deterrents for these companies. Once they stopped looking inside their own countries for cheaper skilled labour and high-quality infrastructure and started looking to third-world countries like India, China and so on, the search ended. The offshore software development boom had begun.Outsourcing became the rage of the times and outsourcing still continues to be the chief attraction for big application developers of the developed countries.

Offshore outsourcing of application development and other IT projects offer these overseas companies significant cost savings by providing access to cheaper skilled IT labor in countries such as India.The otherside of the coin was that by outsourcing application and software development to third world countries, the developed countries were laying themselves open for the risk of rising unemployment and disillusionment amongst the skilled workers of their own countries. However when new innovative approaches take root, they seldom take into consideration any sentiments or hurt emotions. The tide of offshore outsourcing swept away these weak objections and surged on as companies in USA, UK , Germany and France seized the opportunity to save 30 to 40% costs in application development. These multi-national companies and in some cases the governments themselves ventured forth to outsource their application development and other skilled-labour-intensive assignments to countries like India.

Due credit must be surely given to the countries like India, who have been silently moving towards the IT revolution by a paradigm shift in their governmental policies, focussing on IT education and training, IT infrastructure development and quantum leaps in communication technologies. These countries were ready when the outsourcing boom began. India and other developing countries had everything going for them- Abundant skilled human resources, well-established IT development centres with the state-of- the art technologies and hardwares,advanced communication technologies supported by dedicated communication technologies, assured long-term IT-friendly government policies and the additional bonus of being geographically placed in a favourable Time-zone. These factors led to the sprouting of talented , resourceful private players who stood to benefit from the flow of offshore outsourcing for application and software development assignments. According to Gartner, India has already outpaced all the other third-world countries in respect of volumes of outsourcing assignments ,foreign-exchange earnings and overwhelming advancement in all segments like increase in per capita income, standards of living and a fascinating economic growth rate.

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