The economic situations prevailing in the early 1990s necessitated the demand for cost reduction among the world majors of different sectors. This paved the way to the exploration of multi-site, multi-country software development, IT and ITES approaches. And, India and Eastern Europe become the most haunted ones of this voyage.
The phenomenal growth of India in the software development outsourcing segment is due to several factors. This article focuses on some of them in a nut shell.
Skilled talent pool for IT and software development
The quality of education in Indian institute of technology, National Institute of technology and other premier engineering colleges matches the international standard. According t an estimate, India is capable of adding new 250,000 IT professionals every year to its already existing massive IT talent pool.
Quality
Indian companies are the initial achievers of CMMI level 5 accreditation( the highest level of SEI) for their well defined maturity level in software development and maintenance process. Now, every second CMMI level company is an Indian and the number is increasing every year. It means a healthy competition is intensifying among the Indian IT and software development companies to offer clients qualitative software development solutions.
Cost Effective
The disparity in the exchange rate and cost of living are the two major factors that favor the cost reduction while outsourcing the software development work from India. The estimates of NASSCOM show that the cost reduction can be up to 40%.
English speaking population
According to 2001 census, approximately 90 millions of Indians can speak English compared to 42.5 millions in Philippines and 10 millions in china. Now, India is the home to the second largest English speaking population of the world and estimate show that India will be the numero uno by 2010. . English proficiency of Indian IT professionals helps a lot to bridge the communication gap during the process of software development and IT outsourcing.
Superior IT infrastructure
After the liberalization of Indian economy, development of IT infrastructure got an unprecedented attention from the Government of India and several state governments. The Infrastructure available at Bangalore for IT and software development can be compared to that of silicon valley. Other cities like Hyderabad, Delhi, Mumbai have also highly developed infrastructure for IT and software development.
