Software Outsourcing Growth

By: Rakesh Patel

According to survey 81 percentage of the total executives mentioned they plan to increase their over next few years while only 4 percent mentioned that they will decrease it.

Although, is increasing, research also revealed that, large companies are choosing to offshore their IT related activities to India and china by starting their own wholly owned subsidiaries rather then external service providers. Software outsourcing has grown, developed and now matured as a trend in today's business. Managing director, International Mr. Duncan Aitchison of TPI mentioned, "Our survey results clearly indicate that there is very little disillusionment with offshore outsourcing. What we can observe, however, is a general shift towards more sophisticated sourcing strategies as the global sourcing market comes of age. The growth of captives stems from companies now being more aware of how to conduct an offshore operation and less reliant on external service providers." He also mentioned, the build, operate and transfer model is becoming the latest trend in IT industry.

Survey also reveals that, many companies are taking global view of software outsourcing and separating proces to decide what is best for offshore, nearshore and onshore development. As outsourcing trend is increasing, UK buyers are seeing wider range of countries for . Although India is a clear leader and used by 75% of the respondents, there is a close competition between central and eastern european countries and china for the second spot. Although currently used less, central and eastern european countries are reated attractive by 59% of the respondents.

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