Software Outsourcing: A Western Dilemma or an Opportunity ?

June 15, 2010 - PRLog -- Unlike business process outsourcing (BPO) and information technology outsourcing (ITO), which are mature business models, the software outsourcing and offshore outsourcing business is relatively new. According to a Gartner study, the most successful hub for offshore software and software development outsourcing is India. Globally, according to the study, the Tier I Cities for software outsourcing are:  Bangalore, Yerevan, Mumbai, Ahmedabad, Bucharest, New Delhi, Hyderabad, Chennai, Pune, Indore, NOIDA, Gurgaon, and Thiruvananthapuram.

The Western Dilemma: The global economic crisis has deeply affected especially Western countries and it is estimated that they will take a minimum of five years to recover. While they have tried to retain their advantage in technology, there are problems:

•   The USA and Canada producing a little over half the required number of graduates in science and technology

•   A large number of their MS and PhD students are international students who are likely to return to their countries

•   Mostly, the Western countries have aging populations, and executives in senior positions are heading towards retirement

•   While these countries are recovering, they are still lagging in the kind of growth and business competitiveness that they had in pre-economic crises days. The productivity gap between them and smaller industrialized nations continues to widen, every day.

The Software Outsourcing Solution: The solutions to the human resource problems faced by startups, emerging and established technology companies and IT enabled organizations in the West are not possible in the short term - even immigration is a long and difficult process. This makes offshore software and software development outsourcing a viable solution for Western countries.

•   Some benefits of offshore outsourcing for software and software development are:

•   Cost effective, especially in tough economic times

•   Timely maintenance and service

•   Internationally qualified specialists in software and software development

•   Offshoring and outsourcing leaves clients free to focus on their core businesses, which could be manufacturing, hospitality, sales, etc.

•   Scalability



Offshore outsourcing for software and software development has gained acceptance in most Western countries and is already a US$65 billion industry, predicted to grow rapidly and contribute to effectiveness, productivity and competitiveness to organizations around the world.

http://www.brickred.com/

# # #

With offices in the US, UK and Dubai, BrickRed provides services for end-to-end development of commercial grade software products and applications to start ups, emerging and established technology companies and IT enabled organizations. Our work has been endorsed by leading industry experts: The Black Book of Outsourcing, Red Herring Asia, Deloitte Fast 500, and Microsoft, among them.