Most of the companies in the Fortune 500 have their offshore software development done in India. India has major advantages over many other offshore centers:
Vast Access to Skills:
In the past few decades, America's ever-increasing need for high-tech professionals siphoned fresh IT talent from India, known for producing some of the top talent in the software industry. Every year there are about 70,000 IT graduates are coming out of India's top universities. After 2-3 years experience, these young professionals combine enthusiasm and self motivation to develop neat software.
Quality of Workforce
IT industry in India maintains international working standards. While you working with Indian IT professionals, you get the feeling of working with highly experienced and professional developers, who are forthcoming about suggesting something which could benefit the project while also questioning something which may not be in the best interests of a project.
When outsourcing the project, you save the following expenses, paid fully when working with employees:
Costs of recruiting, facilities, benefits, and bonuses
Costs of computers and software
Phones, international faxing and internet (including e-mail and ftp)
Office rent, energy costs, furniture and other equipment
Office maintenance, cleaning, security and insurance
Administration and accounting, legal support, taxes
Rapid Time to Market
The emergence of ebusiness and the Internet empowers marketers to continually and in real-time measure and improve the effectiveness of their multichannel marketing campaigns and better understand customer needs, preferences and behavior. With all it's advantages, some of the Indian universities provide technical education as well to it's MBA students who after coming out of universities understands technologies along with marketing and administration skills.
IT industry is the most favored industry of Indian government, who introduced tax breaks a decade that has lead to the development of strong billion dollar software export industry. Outsourcing of US software development to India is projected to grow from $5.5 billion in 2000 to $17.6 billion in 2005. (IDC study quoted in InfoWorld 6/11/01).
Fluency in English
Technical education system in India is completely in English which makes it possible for every educated person in India to speak and fully understand English.