Offshore Software - competition among countries & how can India win the top slot?

[hanusoft]

The foremost priority for any Outsourcing company is to set an offshore center which has the best of technology and talented manpower to execute software development. In this context, India has established its hold on Offshore Software Outsourcing along with Russia and China. But she has countries like Philippines eyeing for competition in offshore outsourcing. It is proposed that the competition is due to rise in English speaking community in Philippines. What can be the other reasons for stringent competition and how can India reach the number one slot in Offshore Software Development?

[Elisa]

Until recently, the outsourced software development was concentrated in countries like India and China; Russia was far behind in the competition. There are several factors which accelerated the growth of these countries as outsourced software development preferred destinations. To list a few,

1. Time Zone advantage
2. Cost cutting
3. It is easier to communicate with people who are fluent in English.

Countries like Vietnam and Philippines are catching up faster because they are willing to provide similar quality services at even lower rates.

For any country to win the race, it must concentrate on establishing confidence with the client. This has worked for most of the companies. India's Infosys can be taken as an example.

[kidakaka]

I am somewhat confused here. Are we talking about outsourcing or offshoring? Well, if its offshoring that we are talking then heres a few things that should be looked into -

1. Full convertibility of the INR - To ensure that more foreign firms have no issues against investing so much capital into the country
2. Subsidies against FDI and FII - To incentivize foreign players to setup shops.

In both the cases, countries like China beats us hands down.

The talent and the low labor cost is always there with India/China/Russia, the lot
.