IT companies find gifted personnel at significantly lower rate in Asia.
But India may succumb of its own growth: to cover exporting activity estimated in $50 billion India would need one million software developers - according to research held by Salinas, Software Outsourcing Research company headquartered in California. As of current situation from India higher educational institutions graduate a bit more than 100,000 software engineers annually, large part of them migrates to the United States.
China is also keeping the pace with India. Approximately estimated 400,000 to 800,000 software developers are engaged in Software outsourcing at an average annual salary of circa $9,000 per year. Though, language and cultural diversities create obstacles for Chinese companies looking for outsourcing work.
Indian companies have a handicap with a proven track record of implementing and delivering elaborated integration projects. While Chinese companies build business relationships with high-quality software support, and the Chinese government is crafting its policy to stir the development of the IT sector.
“Companies are under constantly increasing pressure to provide top-notch services at competitive costs. The attractiveness of offshore development services is that they enable companies to focus on their core activities, implementing the tread mill and routine tasks” mentioned senior analyst of Gartner Inc., a technology research company.
To yield fully functional products, U.S. companies and their offshore partners must seek ways for efficient collaboration. “First we need to set up good working relationships and good process management infrastructure,” stated the president of DigiCentury Corp., San Jose headquartered company.
Corporations and government institutions concentrate their efforts on cultivating China as an offshore marketplace since the country joined the World Trade Organization. In year 2001, Maryland-based firms sold goods and services to China for $155 million, and further on these numbers are expected to raise steeply.
Sometimes offshore companies establish their representative offices in developed countries - main exporters of offshore activities. In such manner, companies can learn from their competitors and industry power-players in offshore development.