Software Outsourcing has long passed the fad or buzzword stage. Outsourcing software development is here to stay as an IT trend which has evolved, grown, matured and is living up to and outgrowing its potential. Especially with companies that wish to cut costs while gaining access to world-class software engineers, it is no more an option but a smart decision. One of the strongest factors that attracts most of the Fortune 500 companies worldwide to the software outsourcing company in India is the significant savings attached to an offshore software outsourcing project. On an average, companies report 40% to 60% increase in net savings with the help of Offshore Outsourcing.

Majority of the fortune 500 companies today target offshore software development in India. The core reason for preferring India, as an offshore software development partner country, to other competing destinations in outsourcing business is a vast pool of educated human resource combined with world-class quality offerings and ever encouraging Government policies for the IT sectors.

• Cost Efficiency
  Labor cost savings may reach up to 70% for routine low-level tasks as compared with in-house development in North America and Western Europe.
  
  Significant reduction of development time and, thus, speed-to-market becomes invaluable advantage in a present-day competitive environment.
• Availability of trained IT staff
  Immediate access to a large pool of best industry talents allows overcoming hiring gap for IT professionals in the developed countries.
• Flexible manpower utilization
  By using outsourcing model company cuts down its housing, recruiting and training expenses.
• Development risk minimization
  Proven development process and quality management system.
• No up-front investments
  No up-front investments on the customer's part.
• Outsourcing is not just a strategy of cost reduction. It is in fact, a strategic service and essential element of growth.

The foundation of successful software outsourcing relationship is laid when an organization communicates to the potential suppliers about its intention to outsource business functions. Outsourcing is not just a contract signed between two parties but is largely emerging as a relationship managed from day one of the contract. Successful outsourcing relationship requires a lot of professionalism and good management. Managing outsourcing relationships requires constant attention and an expectation of continuous improvement and proactive approach towards achieving it. The company's ability in managing their outsourcing relationship will determine its business success.

India is an ideal offshore destination due to various cutting edge advantages it has over other countries. Let's make a closer look at the factors highlighting the potentials of IT outsourcing to India:

1. Strengths
   Government Policies, Skilled Talent Pool, Indian Education System….more details
2. Quality
   In the past few years, the Indian IT industry has pursued the goal of attaining the highest international standards of quality….more details
3. Infrastructure
   Infrastructure that is of importance in the IT industry includes telecommunications, electricity, access to computers, number of Internet hosts….more details
4. Competitive Cost
   A substantial cost saving can be achieved by IT outsourcing to India, owing to the yawning gap between the labour costs in India….more details
5. Knowledge Professionals
   Being a talent rich country, India offers the fastest growing pool of expertise that is computer literate. The rich resource of educated customer care….more details