The Global market of IT development outsourcing is changing at incredible speed. The software development companies will move towards offshore IT companies as countries like India, China and Philippines provide quality development at affordable cost. It will create a new demand of software developers in India.
It is clear that clients who outsource software to outside providers expect good quality of development at less cost. In 2011 this would remain the same as quality is always the first preference. After about a decade of growth, it is time for reliable organization, superior customer service, modern management and, most important of all, top-notch solutions. Companies having a good position in the IT market and have client trust will reap the fruit of growth. Knowing that they can turn to hundreds of other outsourcing firms competing for their budgets, clients are likely to reward not just affordable prices, but – more than anything else – sustainable high quality.
In South Asian development countries China breathes down India’s neck as most important global player. The country is often cited to be on a march of success towards global domination. We put it less dramatic and underline that China as potential offshore outsourcing leader might become an issue throughout this decade. The outsourcing sector growth in China will certainly pressure India’s and the Philippine’s labor costs and service pricing.
There is a possibility of a merger between a major Indian IT service provider and a U.S.based outsourcer. Some industry analysts are indicating that it could happen next year. Indian providers are skilling up to try to win more consulting and integration work. “The cultures are moving closer together,” says Fersht of HfS Research. A revival of growth in the offshore outsourcing sector is likely to become reality in 2011.