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Offshore Outsourcing  

Outsourcing Destinations

Offshore Outsourcing Destinations providing Outsourcing services, are being utilized by majority of the Fortune 500 Companies today. From among the various Offshore Outsourcing Destinations, India has emerged as the most powerful and talent rich destination in the field of Offshore Outsourcing. Let us have a look at the major Offshore Outsourcing Destinations around the globe:

1. India

India is a dream destination for any corporation around the globe, when it comes to offshore IT outsourcing. More than 260 of the Fortune 500 companies have already outsourced their requirements to Indian software houses. Some of these beneficiaries in the current trend of Outsourcing Offshore to India can be listed as: Microsoft, Oracle, Citibank, Morgan Stanley, Wal-Mart, AT&T, General Electric, Reebok, General Motors, Sony, Boeing, Coca-cola, Pepsi, Swissair, United Airlines, Philips, IBM, Lucas and British Aerospace and many more to come.

Today, MNCs are rushing into India to stake a claim to the IT outsourcing market. As a result of it, India-based developers who, by estimates, hold 85-90 percent of the offshore outsourcing market today are still growing between 20 and 24 percent annually, (according to NASSCOM, which speaks for the Indian software industry). While a large number of companies are outsourcing their software development to Indian companies, others are establishing a presence in India and participating actively in the software export game. India is an ideal offshore software development destination due to a variety of advantages it has over other countries

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2. Russia

As competition in the global offshore software development market gets tougher, advanced services such as IT Enhanced Services (ITES) and Business Process Outsourcing (BPO), create new opportunities for development. Although Russian offshore software developers are not yet marketing ITES or BPO as separate areas of expertise, a few bigger firms are beginning to provide services of these type, viewing them as a promising area for future development.

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3. Phillipines

The important steps have been undertaken to bring Philippines ahead in the race of getting the outsourced marketís fair share. . An aggressive group of IT providers have come together under the battle cry: 'Outsource Philippines'. The name projects a clear message to the outside world. 'Outsource Philippines' has the objective of developing Philippines as a credible destination for IT enabling services, serve as a marketing vehicle of the Philippine IT industry, facilitate trade and investment in IT services, IT enabling services and the e-commerce industry, etc. and many other agendas on its list to promote Philippines as one of the better destinations for outsourcing.

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4. Ireland

Ireland was once the rising star of offshore outsourcing along with India. It offered very low rates and an available resource pool. More recently, these advantages have diminished, largely as a result of various internal as well as external forces affecting the business. Ireland, for example, can no longer compete on price with most countries. To survive, Ireland must move up the value chain while others take its place of providing highly skilled programmers at low rates.

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5. Israel

A lack of natural resources propelled Israel into the knowledge-based economy early. Today, it is a major software center for the world and is growing at 25 percent a year. Currently, the ongoing regional turmoil and violence continues to taint Israel's image. Israel is home to mostly boutique IT consulting and services companies focusing on customized applications or shrink-wrapped software production, in contrast to India's large, project-oriented enterprises.

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6. China

Companies are already starting to eye China's vast supply of skilled IT workers, even though China isn't expected to become a mature market for outsourcing until 2007, at the earliest. Chinese IT professionals, including software engineers and project managers, are also significantly cheaper than their U.S. counterparts, typically earning one-sixth of the salaries paid in the U.S. In addition, many Chinese IT professionals have some experience working abroad. But there's more to outsourcing than finding experienced software engineers willing to work for less. Chinese IT professionals still fall short in areas such as language ability and cultural compatibility.

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