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Offshoring in India

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!

e-Zest is a leading digital innovation partner for enterprises and technology companies that utilizes emerging technologies for creating engaging customers experiences. Being a customer-focused and technology-driven company, it always helps clients in crafting holistic business value for their software development efforts. It offers software development and consulting services for cloud computing, enterprise mobility, big data and analytics, user experience and digital commerce.