IT outsourcing

Software companies are required to produce many software products for their customers. These software products are used for giant organizations like airlines, banks, financial institutions, large corporate houses, and various government bodies, where a lot of data is stored and updated every day. The IT (information technology) software companies in the US, Canada and Europe that are taking on these projects require a massive investment in infrastructure, as well as a huge workforce to work on them.

This is a competitive world and every industry wants to be very competitive in every business. So is the IT software industry. To reduce labor costs, IT software companies are increasingly outsourcing their jobs to developing countries in Asia, Latin America, Africa, and the Middle East. Since “cost savings” is the main objective of IT software companies, it is estimated that almost 50% of IT software jobs are outsourced to developing countries.

Most outsourced jobs are .Net software creation, Java/J2EE, database solutions, smart card solutions, and wireless/mobile application development. BPO (Business Process Outsourcing) is also helping its foreign clients in voice and non-voice solutions, customer service, data management, etc. Outsourcing companies hire young, well-educated, English-speaking staff who are energetic and willing to work in shifts. These outsourcing companies charge very cheap hourly rates and most of them work for even less than $7/- per hour, which is much lower than standard hourly charges in the US.

India has taken the lead in IT outsourcing jobs. His city of Bangalore is now said to be the Mecca of the IT industry. With favorable government policies and substantial investment in infrastructure, India is becoming the big draw for IT software outsourcing jobs. By outsourcing your IT jobs to Indian, US, Canadian and European companies you will not only save labor costs, but also help them become more competitive, focus more on core competency areas and enjoy tax benefits. Once IT software jobs are outsourced, companies can focus on marketing, advertising, launching new products, finding new customers, etc.