Outsourcing Software Development

October 4, 2009 at 2:56 am | Posted in Articles | Leave a comment

The software industry has seen its share of ups and downs. From the boom in the early 90s and then the burst of the bubble in the late 90s and the return from slump to its strong position now, it has passed through every phase with a lion’s heart. The market for outsourcing software development was not significant initially during the boom period because the USA government allowed a lot of professionals from India, Pakistan and other countries to live and work in USA. This led to creation of the settlement more commonly known as the Silicon Valley. But once the IT bubble burst and led to severe downsizing, a majority of the people from Silicon Valley had to return back to their countries after coming under the axe.

This led to the accumulation of a large number of talented and experienced software professionals in countries like India, and with these resources available a few saw the opportunity for creating an industry which would thrive on outsourced projects. Thus countries like India became the hubs for outsourcing software development. Companies like IBM, Oracle and other big names in software industry began to outsource parts of their work. This led to the huge increase in the profits of the three major Indian IT companies, Infosys, TCS and Wipro. These companies being the oldest and the best in India changed the direction of Indian IT industry while making the most out of outsourcing of software development.

When the companies in USA resorted to outsourcing of software development, the work mainly consisted of testing services. This testing basically meant the checking of the entire code of the software and the indication and removal of bugs found, if any. Outsourced software development work still mainly consists of this kind of work only.

But due to the phenomenal growth of Indian IT industry alongside the rest of the world, the outsourcing of software development too has grown in its horizon, range and volume. Now the outsourced software development work not only includes testing and debugging but also development of new softwares, upgradation of existing softwares and customer support services.

And with the opportunity to utilize low cost trained workforce of India, a majority of the major American companies opened their offices in India and instead of outsourcing their work to other companies they now get it done in their Indian offices.

Well all said and done outsourcing software development has not only helped India but also the participating American companies in more than just one way.


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