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Verdict on Indian Software Industry: Best in Quality and price !


The Verdict is out !

India leads the pack in a big way in Global outsourcing game. And it is not due to cheap labor. It is due to High quality that Indian software companies produce. With Indian software wages sky-rocketing, India is no more cheapest. However, quality produced by Indians is still the compelling reasons for companies globally to turn to India to do their work.

Here is a quote from recent NewsWeek article:

The infamous “race to the bottom” may not be over. But increasingly, service industries are moving operations not to nations at the bottom?which is to say, nations like India, where labor is cheapest?but to where the work will be done best. The new race is to find the most-competitive service. And it speaks volumes about the rapid modernization of India that its companies are still out front.

There have been constant talks about China getting closer or even beating India in this game. Not only China, but countries like Poland and Vietnam aggressively positioning themselves in the market. But, none of them have been quite successful.

IDC research predicts that the world market for offshore IT services will grow to $37.8 billion by 2011, more than double last year’s figure. Yet no new rival has derailed India’s rise.

In the past decade, India’s outsourcing revenue has increased tenfold. By some reckonings, Indian companies still capture more than 80 percent of the IT offshoring business. With growth in the Indian industry still running at a healthy double-digit rate, the top companies?Wipro, Tata Consultancy Services and Infosys?are evolving as fast or faster than the outsourcing market itself. Each now has a total stock-market value of more than $20 billion, when none were even listed 10 years ago.

The Indian software companies are now truly becoming multinationals. They are spreading their base by doing aggressive acquisitions globally. In 2007 year alone, Indian software organizations have made more than $2 billion worth of acquisitions, including a recent buyout of Infocrossing by Wipro. Another big deal currently in decision making phase.

As long as Indian Software companies keep churning out quality and think globally, no one can come close to dethroning them !


  1. Robert Britten says

    So far-so good. What kind of info do you have on nano thec?
    Bob (from yesterday)

  2. Robert Britten says

    I’m guessing that the $2500 price for the new Tata Motors Nano is if
    I were to buy it in India…correct me if I’m wrong. Also, what could I expect to pay for import tax to bring said auto to the USA?
    Please do not delete this comment as you did last time.
    Thankyou kindly,
    Robert Britten

  3. Neelu says

    A good place to find quality tech providers whom you can outsource work to is oDesk, Inc. Based in Silicon Valley, oDesk is an online marketplace with over 15,000 tested and rated providers from all over the world. You have the choice to choose either a freelancer or an affiliate firm as your outsourcing partner.

    One of the unique aspects of oDesk is that unlike many other sites, its oDesk Team software allows for hourly payment jobs — this enables Buyers to set up long-term contracts and is very useful for IT management or website management. Additionally, oDesk providers take a series of skill tests when they sign up, providing for an independent skill assessment of their abilities.

    — Neelu ,

  4. Jack Pedro says

    I work for a large Fortune 500 organisation and have been dealing with progamming teams from multiple countries.
    I do not buy the claim about software quality being high in India. We had to scrap two million dollar projects which were developed using Indian Outsourcing Partners. I also deal with Offshore companies from Pakistan who have a better track record of quality delivery.
    The East European teams are far better than Indian Teams.

  5. trakin says

    That is an excellent point. However, my article is purely based on application development/ consulting and not B.P.O. Infact, in case of BPO it may be exactly the opposite. Already countries like Phillipines and Vietnam are coming up in BPO space in a big way. It is matter of time before Indian BPO Industry will face stiff competition from others, even fall behind.
    Jim, I am talking about offshoring / outsourcing only. And the statement I made was from the fact that
    1) more than 80% of application development / services offshore happen from India
    2) China’s perceived threat due to low wages is not so grave anymore, because in last couple of years Indian companies are not positioning themselves as low cost providers, but as quality outsourcers, who do a high quality job.
    3) Indian companies are now truly becoming multinationals based on acquisitions spree they are currently on…
    4) US / UK companies are seeing outsourcing and offshoring not as a cheap cost but as a strategic way to transform their business. They want to concentrate on their core area and rest is outsourced to people who are best in that..
    5) The experience they have gained over years and refinement they have brought about in their processes is difficult for countries like, China, Brazil, Poland to catch on…
    6) Global companies like IBM, Accenture already have invested huge amount of money in India and more than 100,000 employees each.
    7) Indian software companies themselves are setting up shop in their rival countries like China. So if they have something they do better and cheap, India will sublet their work to them.

    Having said all this, I may be guilty of making a dramatic sentence :), but bottom line is- It is very difficult to dethrone India as a preferred Offshoring / outsourcing partner.

  6. Jim Norton says

    Nice article Arun. However you editorialize thusly,

    “As long as Indian Software companies keep churning out quality and think globally, no one can come close to dethroning them !”.

    What makes you so sure of this? I know you are a bit biased but still….. Do you have something other than pride in your nation to substantiate that claim? What am I missing?

  7. Dyutita says

    Its true that India is IT & BPO hub but for how long, according to one report attrition & salary and political turbulance and uproaring of new developing economy for how long we will enjoy this position…
    According to one HR consultants report, In BPO salary hike is nearly 30% and attrition is nearly 25%. u are in IT firm so know well about it …
    How can we maintain our supremacy in this field ………….

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