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'India most ideal BPO destination'

April 24, 2006 18:44 IST

As the world's software companies increase their reliance on offshoring for development, Indian IT industry stands a huge chance to share the pie, thanks to their technical capability, domain expertise and flexibility, says a report by IT research firm Sand Hill.

The report also names India as the ideal offshoring destination in the world.

Among all the independent software vendors surveyed in the US, it was found that over 83 per cent offshore their product development projects to India while a mere 5 per cent offshore their projects to Canada or China.

The report, commissioned by Pune-based Persistent Systems, showcases a rising maturity amongst ISVs in identifying and engaging the appropriate approach to ensure success in their offshoring initiatives.

Outsourcing and India

The study is a comparative analysis between the findings of the report on the offshoring  industry  in  2005 to those acquired from a similar study conducted in 2003.

Taking views from CEOs, CTOs, VPs of engineering and R&D departments of top US-based product development companies, the report sheds light on the offshoring industry at a time when software companies are getting more and more reliant on offshoring, making it an integral part of their business strategy.

Among the many aspects of the offshoring industry analysed in the report are trends and challenges in offshoring, augmentation in functions sent offshore,  demand for outsourcing partners as compared to captive centres, and  a  comparison between the performance of both these models.

Anand Deshpande, chairman and managing director of Persistent  Systems,  said, "The report gives software companies a directional  insight  into the state of offshoring in the software industry today.  It clearly underlines that the industry is growing and maturing.  Cost is no longer the only consideration. Speed to market, workforce flexibility and domain expertise are the drivers of the industry."

M R Rangaswami, managing director of Sand Hill Group, said: "With over 60 per cent of software companies being more reliant on offshoring now than they were two years ago, software companies feel that offshoring has to be strategic to their business model, highly collaborative and leveraged in all phases of the product development lifecycle. The Sand Hill - Persistent Systems Report on Offshoring 2006 investigates how this is done and gives actionable advice."

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