Offshoring is a type of outsourcing – simply put, it means having the outsourced business functions done in another country. Frequently, work is offshored in order to reduce labor expenses. Other times, the reasons for offshoring are strategic – to enter new markets, to tap talent currently unavailable domestically, or to overcome regulations that prevent specific activities domestically.

In today's competitive global business environment, products must be developed quickly and manufactured at the lowest cost. For example, software can be developed in shorter timeframes and more cheaply in countries like India, which has rapidly become a software development center.

India has emerged as the dominant player in offshoring, particularly in software work. Sourcingmag.com attributes this growth to three factors. First, in the 1970s the Indian government put in place regulations that mandated that all foreign ventures have Indian majority ownership. Fearing government takeover, many large U.S. corporations, such as IBM, departed, leaving India in the position of fending for itself to maintain its technical infrastructures. This quickly forced the creation of schools to train students in technology.

According to Automation.com, U.S. automation suppliers are looking to maintain or increase profits through reducing costs through offshore outsourcing. Major automation suppliers like Honeywell and General Electric have already transferred major chunks of manufacturing to China and software development to India.

Software development in India has been booming in recent years. India now sells $6-8 billion worth of software annually to the U.S, with 60% annual growth projected over the next decade. Already the world's largest democracy, India has the advantage of a high-percentage of English-speaking scientists and engineers.

For information about translating materials into Hindi and other languages found in India, Contact uscontact us.

SOURCES:
Sourcingmag.com
Automation.com