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Offshore development centers have appearing
throughout the world. Buyers can choose from locations across
Asia/Far East (India, China, Philippines), Europe (Ireland,
Russia, Hungary, Poland, Czech Republic), the Americas (Canada,
Mexico, Brazil, Chile, Argentina), and Middle East/Africa
(Israel, South Africa).
Although there are many choices for offshore outsourcing,
not all offer the right formula of success. Selecting the
right option requires right mix of factors such as cultural
affinity, geo-political risk, cost advantage and resource
availability. India has emerged as the dominant player because
it is the strongest option across a range of factors:
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Competency in delivering IT
services — India has a strong understanding
of business applications and has many decades of experience
in delivering IT services. Many of the IT blue-chip
corporates like Microsoft, IBM, EDS, Dell, HP, Compaq,
Sun Microsystems etc have their own captive development
facilities as well as outsourcing relationships with
offshore vendors. |
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Availability of skilled resources
—By any measure, India has the largest pool
of skilled, experienced IT professionals. India's premier
universities and colleges churn-out thousands of well-educated
professionals pool every year. |
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Government support —Indian
government is a strong supporter of IT initiatives and
has invested heavily in building its capabilities and
supporting it. |
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Cultural affinity — India
is the second most populous English speaking country
in the world and IT professionals have extensive experience
working with their American and European counterparts.
In contrast, China has a low rate of English speakers,
significant cultural differences, and far less experience
in working with global IT organizations. |
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