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Outsourcing software projects to India. Advantages and Disadvantages

BY: chitracs | Category: Technology and Computers | Post Date: 2008-09-25

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Let us see what is meant by outsourcing.
The jobs which cannot be done by us, given to somebody else with some norms and conditions are called outsourcing jobs. Outsourcing is also done to reduce costs or to get cheap labour.

Recently, there is a sudden and abnormal growth noticed in the field of software outsourcing jobs in India. The people in India are much interested in getting order for outsourcing of software projects from foreign countries like US and UK. Many small companies are coming up everywhere like mushrooms, throughout all parts of India and they are trying to get order from foreign countries. In the big cities like Bangalore, Delhi, Noida, Bombay, Chennai and Hyderabad, there are many software companies, who employ lot of software professionals for this purpose.

Normally, the people who could not work in software companies in foreign countries but well qualified start such companies and by getting more and more orders, they establish the company. The people who have contacts with foreign companies, who are in need these types of jobs and capable of getting order for software projects from such foreign countries are also involved in this process.

What are the advantages to Indians by doing these software projects from India:

1. When a person is employed in Indian software company, he will get a lower salary when compared to western / American standards. So, many people choose this option of doing the outsourcing software projects from India for cost savings.

2. They need not leave their place or country. They can work from India itself and get good salary compared to other professions.

3. The Indians need not get bothered about visa problems or leaving the family alone.

4. This is a white collar job and requires less travelling too, which is liked by most people in India where life can be hectic. The working culture will be good and even it's hot outside they get the luxury of Air-conditioned (AC) cubicles. They need not move from place to place in sun and rain.

5. They can switch over from company to company and every time they get a better salary offer, provided they show quality of work and good references.

6. They can avail some special tax benefits in some zones like Software Export Zones (SEZ) and states like Uttaranchal.

The foreign countries those who do outsourcing of software projects to India also enjoy the following benefits :

1. The cost is comparatively less. The payment given for the software project by outsourcing to India is less and if the same work is done by employing the people there, they may have to pay 4 or 5 times of it. So, they are happy with this arrangement.

2. The Indian software engineers do the work very neatly and finish the project within the time, without bothering about food, sleep or rest. They are devoted and committed to work. The quality of work done by Indian software engineers is incomparable.

3. The foreign companies can hire them for software projects, as and when required. They need not give regular employment to them. The project may be long term or short term.

4. The Indians speak and understand English well. This is really a boon for the recruiter.

5. Every year more and more software engineers emerge from India with good knowledge and already plenty of them are engaged in the similar type work of doing the software projects for foreign companies.

6. Plenty of choices are available and qualified persons in diverse technologies in the software field are in India only.

7. The Indian software engineers have got the tendency to update their knowledge as per the requirement of the foreign firms which they cannot expect from others.

8. The software engineers doing outsourcing jobs at India are willing to do onsite jobs, in case of emergency.

We have to see the disadvantages on the part of Indian software engineers also.

1. The health of our software engineers will get spoiled at the early age of 40 itself. They normally get back pain, strain on eyes and spontilitis. They become weak and get an old look at a young age.

2. They may have to sit for day and night to finish the project. This may result in serious disease in the future. They cannot get regular sleep as they have to work in odd hours. The body may not accept if there is frequent change in sleeping hours or inadequate sleep.

3. They don't have time to do exercise, yoga or meditation regularly, as they have odd working hours.

4. The people engaged in this job cannot take their food in time. The balanced diet is essential to keep our body fit. They take junk food, while working and skip normal diet.

5. Due to the enormous income they receive, they may get bad habits like smoking, taking drugs and alcoholic liquor.

6. Suppose the foreign country suddenly stops the order, getting another job immediately is a problem.

7. Due to fall in the value of US Dollars, there will be a decline in salary in terms of Indian rupees.

8. Since they do time bound work, they can not participate even in important family functions and social activities, by which they may not get proper respect from others.

9. Previously, India was the only country which was doing the software projects on outsourcing but some other countries like China started to compete with us and they are prepared to undertake the same job with a less remuneration.

10. The software engineers who are engaged in these types of jobs should save some money for the future as there is no guarantee for the job and there are no retirement benefits during their old age.

There are some disadvantages to the outsourcing foreign companies which we may see now.

1. Some works are possible being on sight only. Giving everything to the companies geographically located at a long distance may result in some problems. For making small modifications, they cannot call the software engineer immediately.

2. The outsourcing companies may not be able to find the correct person for doing the software project, as they have to depend on somebody and conduct interview, etc over phone only. Through E-Mail they may or may not get the reliable information.

3. Suddenly, the Indian software engineers may shift to other companies if they get a better remuneration.

4. Due to time difference between India and foreign country, some problems may arise.

5. The foreign countries should enter into legal contracts; otherwise they may land in problems.

6. The rules and regulations differ from country to country and Indians are familiar with local rules only. It is not practically possible for the foreign companies to learn our laws and rules.

7.Nowadays, we see disturbance often in India due to political bandh, rallies and attacks by terrorists, which may disturb the work in India and the consequences of it may affect the work, which is required by the hirer urgently.

Recently we hear cries everywhere in India as there is a rumour that many Indian software engineers may have to lose their jobs and there will be restriction for the outsourcing software projects given to India. Due to financial crisis, anything may happen at any time. The Indian companies should equip themselves well to face any challenge and increase their capability to the changing needs. The changes in any field is a common affair and the software industry has already faced this problem several times and raised again successfully. The Indian software industry can very well withstand any tough situation. So, we hope that Indian companies who are doing the work of software projects on behalf of foreign companies need not bother.

Article Source: http://www.saching.com

About Author / Additional Info: I am a freelance writer writing articles, short stories, poems and tips for magazines and many of my works are published in magazines. I am getting appreciation from known and unknown people also. From my schooldays, I have got the passion in reading and writing. I have won many prizes while studying in school and college. I want to improve my writing talent and also earn income through this. Hence, I wish to submit articles through this website.

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