Group 6 Team Project

Natalie Miller
Shaesha Tanner
Autumn White
Cody Johnson

India has become one of the biggest suppliers to the computer software industry because
they have created a model in the global market that benefits both sides of the contract.
The outsourcing concept is key to help multinational and overall large corporations
compete by lowering the payroll and overhead cost of support roles in the computer
industry, such as allowing India resources to perform programming/coding expertise.

India has one of the largest workforces, and the skills needed to perform functions that
are repeatable are easily trained to large groups. Many companies create an overall
design they want to enhance their applications inhouse, but then send the actual coding to
be completed offshore to countries such as India. In today’s era every corporation is
looking for ways to reduce their variable costs and reduce overhead. When looking for
ways to increase profit and fix high overhead costs, one successful way is to look at the
global market and see what countries have a low-cost resource pool with a good
reputation in outsourcing.

India has a reputation for having high skilled labor for very cheap costs which is a big
reason why they are one of the top countries for outsourcing. But that’s not the only
reason why global companies are looking at India to help their bottom line, since cost is
just one factor in helping to stay successful and competitive. Another reason India is a
main outsourcing region is due to the time zone variations, since a resource in the United
States could work on a programming defect for example during Eastern Standard Time
and then hand off the work to an India resource who can then work through the night to
continue the progress. This allows for a 24 hour/round the clock model that works well
for the software industry as well as industries like call centers.

One additional reason that India is a large supplier of outsourcing is English is taught as a
native language in that country, so there isn’t the language barrier that may exist with
some other countries that try to succeed with the outsourcing model. Although Indian
resources may not communicate directly with customers, it is a huge benefit to be able to
provide design requests or other types of software deliverables offshore and know that
the team offshore understands the documentation and can communicate back in a similar
language.