Home Add to Favorite Contact Submit  
             29 October, 2020
 

    
Category:  Articles » Computers » Software

 

Offshore Software development economic benefits

Popularity:
         Views: 1534
2011-01-29 01:33:02     
Article by priscillablythe

Offshore software development means to perform the software development services from remote location for e.g. the software development project of a US based company is executed at offshore software development company in India. With cost effective and advanced telecommunication services and digitization of business services has given rise to the trend of offshore software outsourcing. Due to these two facilities it has become easy, speedy and cost efficient to provide services to companies regardless to its location.

The primary reason which took the offshore software development industry to a peak is the reduced labor costs. Through offshore software outsourcing in India companies in USA can hire highly skilled employees at extremely low wages, whereas if they recruit in their own country they will end up paying almost 70% higher wages. Talking about software development, to hire a software engineer in USA can cost $60 to $80 per hour, whereas company can hire a software engineer with similar qualification and skill set for $6 to $10 per hour if they choose an offshore software development company in India. This way USA based companies are saving substantial amount of costs through offshore software outsourcing.

Offshore outsourcing is not limited to software development, but even the processes of telemarketing, customer support, data entry, accounting, legal process, recruitment, medical transcription, back end management, etc. are been outsourced to developing countries like India, Philippines, Russia and China. These jobs are kind that are not so preferably and levied heavy costs if operated locally. While outsourcing can save the US based companies from costly human resource, they can hire willing employees by paying low salary in India. Moreover outsourcing companies in India have well established infrastructure to do the operations, so companies are not required to spend time and effort in establishing the required infrastructure. The differences in wages paid and the operational cost savings majorly contributes to the economic benefits.

Apart from cost savings the offshore software development outsourcing is also benefitting the customers in terms of increased productivity. The client company can now utilize the saved cost as in company’s core business expansion. The savings accumulated or the profit generated can be ploughed back in to the business to produce better quality products, service more customers and building company brand. They can have all their time and effort invested into the core business which ultimately leads to better productivity and increased revenues.

Though there is significant cost savings, the offshore software development requires costs for telecommunications, up gradation of IT infrastructure to suite the project requirements and managing the business process at offshore center. Even if you calculate these costs it still allows the savings of atleast 50% to 55%. Offshore software development has proved to be the best option to reduce the domestic investments by leverage the high skilled software developers at low pays to increase the productivity. Offshore software development industry has been growing 30% to 40% every year and is been successful in creating win-win businesses in terms of economic benefits.

Specialized in: Offshore Software Development - Offshore Software Outsourcing - Offshore Software Development Company
URL: http://www.tatvasoft.com
Print article      Bookmark this page
Related Articles 
Powerful business email with MDaemon Messaging Server (Popularity: ): For some years, many have been claiming the end of email as a mainstream way to keep in touch. Nothing could be further from the truth, especially when it comes to business communications. In fact, it is safe to say that email is still one of the most important tools in any business. Indeed, a company's ability to survive depends on it. MDaemon Messaging Server helps alleviate many of the ...
Fast and efficient backup for your Windows server (Popularity: ): Digital data is often the most valuable asset in the modern company. Without it, operations will come to a halt very quickly. If a data loss incident is particularly serious, it might even result in the company closing its doors to business for good. That's why you can't afford to take any risks when it comes to keeping your data safe from threats such as ransomware or accidental deletion. And ...
Automate FTP workflows and save valuable time and money (Popularity: ): These days, no business leader wants to be paying to get routine work done that can easily be automated. Most employees would rather focus on their major skills and grow their careers as well, rather than work with regular, monotonous processes. Yet those routine and repetitive processes are also critical in any functioning business. Transferring and synchronizing files between a local computer and a remote FTP or SFTP server is ...
Digital Transformation - Ways through Which COVID 19 Forcing Positive Changes (Popularity: ): There is absolutely no doubt that COVID has emerged as a catalyst for the digital transformation in the world. Ongoing pandemic has forced technology services providers to make necessary changes in the deliverance of their services and use the remote work strategy.Digital transformation is the need of the hour for businesses to keep themselves alive during the pandemic. Consumers also expect companies to become more digitalized during the pandemic. They ...
Protect your online security with GlassWire Free Firewall (Popularity: ): A firewall is an essential component for protecting any home or business network, but a conventional solution, such as the one provided by default in modern Windows operating systems, falls short in a variety of ways. It doesn't give you any insights into your internet traffic, and there aren't many controls to help you optimize the user experience. While the complete lack of user interaction might make it an attractive ...


Related Business 
Offshore Development, Offshore software development India, offshore application development, ANMsoft India (Popularity: ): Offshore software development services by ANMsoft are specializes in offshore development, offshore custom software development, offshore Application development offshore web development, offshore e-commerce solution, offshore outsourcing & banking solutions Centre at Delhi & Mumbai India
Gensoft Corporation (Popularity: ): Offshore outsourcing is getting a job done at another location. Offshore outsourcing is widely popular among the software development industry where software is developed at a facility which belongs to the offshore service provider. By outsourcing its software development requirements, an organization can reap considerable benefits by getting high quality software developed at a low price.
Software Development Company In India (Popularity: ): Infinity is an Offshore Software Development specialist that combines the definite bottom-line benefits of Offshore Outsourcing with its recognized expertise in strategic global models that help it in providing reliable Outsourcing Software Development Solutions. The services offered cover Custom Software Development, Application Development, Web Application Development, Agile Software Development, Software Outsourcing, Ecommerce web site design, Web Marketing, Website Design and Software Maintenance.
Offshore Software Development India (Popularity: ): eXtendCode is an offshore software development company in India providing software development services and solutions such as Web Enabled Solutions, Mobile Solutions, SOA Enablement, .NET Development and Open Source Development. We use our proven methodology to deliver offshore software development services. eXtendCode has its software development India centre in New Delhi.
Affordable website design California (Popularity: ): Sedna is an offshore software development company that brings you the definite bottom-line benefits of offshore outsourcing in providing reliable IT Solutions.
Offshore Software Development Company (Popularity: ): Offshore Software Development services by Nagarro, an offshore outsourcing company in India. We have vast experience providing offshore development services to ISVs and ensure their Intellectual Property Protection.
Software Development Company Noida (Popularity: ): Misha Infotech is a leading web application development company in Delhi India having its offices in Delhi ,Noida providing Offshore Software Development Services & solutions with services such as outsourcing software development India, Web Development India, Product Development, E-strategy Consulting, Offshore software development, Web-Enablement Designing, Offshore Application development, .Net Development, PHP Development, Software Development,Mobile application development,Multimedia and Design Solutions,WAP Development and ERP.
Software Development India (Popularity: ): Prakash Software is an offshore Outsourcing software development company in India,offshore Software Development India,Vadodara,Baroda,Gujarat.Offshore Outsourcing india,Software solutions india, offshore development.
PI digi-logical Solutions Pvt Ltd. (Popularity: ): PI digi-logical Solutions is a leading software & web application development company in Technopark, Kerala (India) providing Offshore Software Development Services & solutions with services such as outsourcing software/Web/Product Development, E-strategy Consulting, Offshore software development, Web-Enablement Designing, Offshore Application/.Net/PHP/Software Development, Multimedia & Design Solutions. We are a specialist for the renewal, restoration, and adaptation of large software systems to new technical and organizational demands.
Offshore Outsourcing Software Development (Popularity: ): Safaltek an Software development Company offering offshore outsourcing software development, web based application, software testing, web design & affordable SEO services to requirement of software development services according to customers need by Microsoft certified professionals.