Low cost equals to low quality is not always true. With pervasive interlinking of global market place, these days it is possible to get equally good quality at as low as 40% of the cost. Favoring the same; offshore software development is becoming a highly popular concept. It is a win- win situation for both developed and developing countries. While the developed countries can access services and infrastructure at cheaper price, the developing country flourishes with the foreign investment. One such country adding big to the cost-quality benefit is India.

India is becoming a hot destination for the offshore software outsourcing. India will continue to support Information Technology, taking the most advantage from the business of software development services. But with the big bunch of IT companies’ coming into play everyday it’s really difficult for offshoring companies to decide among various offerings. Deciding the right price between the diverse ranges becomes a tricky stake. Here is a brief go through of where actually this cost cut comes from to help you decide the raw price of offshore software development in India.

Low tariffs:
What good about the country is that even after having an impeccable IT infrastructure and well knit telecommunication infrastructure the utility cost is low. Firstly, rental and real estate costs are far lower in India than in the developed countries. Additionally the administrative cost also makes it easy to operate office in India. Furthermore the low cost of basic amenities such as electricity and water is also adding up to the offshore software development advantage.

Low technology cost:
The highly competitive environment in India has ensured low pricing of mobile services, Internet, cable TV services, E-Commerce, and other forms of Information Technology. In terms of long distance calls; India telecom infrastructure has made remarkable progress. Latest technologies, like use of fiber-optic cables has enhanced call-clarity and reduced call-costs to a large extent.

Low cost of human resource:
Labor costs are a large part of the total costs of a company’s products or services. Since they are such a major part of what makes up the selling price, these costs must absolutely be kept down in order for a company to survive. Due to lower per capita income the cost of labor in India is times lower than that in US.

Here again the bigger advantage is the skill and education of the labor force in India. And lastly the productivity of labor is also great because of the work culture and technology available. Therefore the offshore software development with India is not only cost cutting but value adding advantage as well.

Tags: Offshore software development, Offshore software development india, offshore software outsourcing, software outsourcing India

This entry was posted on Tuesday, August 4th, 2009 at 7:11 am and is filed under Open Source. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.