Many other IT enable outsourcing services like account Outsourcing and payroll outsourcing, But now, according to latest trend, product development outsourcing is increasing in India. There are many small to medium size companies who are outsourcing parts or full product development to Indian counterparts.

So far, this trend was not much encouragable in software outsourcing. Only big companies like Adobe, Microsoft were doing product development in India and that too inside their development center. But now many Indian companies have started product development and started entering into software outsourcing product development. It is considered that, increase in business will be around 100% in offshore outsourcing product development.

Product development requires specialised skills which not every software outsourcing company has. Product selling firms in US and Europe can reduce their software development cost by doing offshore outsourcing. On the other hand, they can concentrate on marketing and new ideas. Also, they may have to maintain people with specialised skills if they want to do on their own. If they want to open their own small development center in India, it can not be very useful. By aligning with Indian software outsourcing company, they can get access to wider skill area.

Software outsourcing gathered strength with increasing number of sources available in present IT-edge, requirements delivery in possible least time, less skilled personnel available, discrete communication and inefficient management of various modules within a large enterprise. These corporate players started looking and relying on third party for better management at lesser cost and remain competitive in the global marketplace. These are the few factors that led big companies to outsource their software application development to offshore companies where they find time zone difference from eastern countries most attractive, cheaper human capital, rich resources, and skilled professional and low processes cost. Market analysis shows gradual *********** of investors in Indian market and other developing countries. We find increased productive, managed easy solutions where full control remains in the hand of outsourcing companies.

For Indian software outsourcing companies, product development is very lucriative market. Because, comapnies can charge much higer billing rate compare to software outsourcing services. On the other hand, it is also costlier to find and maintain quality software engineers.

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By: Elan Technologies

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