Offshore software development market
Background
“Offshoring”, or “offshore outsourcing”, generally means moving the physical location of
information technology (IT) services delivery from a developed nation with high wage rates
to a developing country with...
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Offshore software development market
Background
“Offshoring”, or “offshore outsourcing”, generally means moving the physical location of
information technology (IT) services delivery from a developed nation with high wage rates
to a developing country with lower wage rates.
The offshoring of IT services began in the mid-1990s when companies outsourced their Y2K
and euro conversion initiatives.
The IT labor market in the developed countries was very
tight at that time and offshoring was often their only option.
The work performed proved to be
very successful.
India, in particular, has become well known for its high-quality application
development and maintenance work.
“Y2K legitimized the offshore marketplace and gave
the Indian providers traction,” according to Rita Terdiman, vice president of Industry Services
at Gartner.
[1]
Since the beginning of the global economic downturn in 2000, offshore outsourcing has
become one of the major sources of IT cost savings.
Although legacy
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