Economics of Offshore Support in the Software Industry

As the United States is continually seeing a sluggish economy, many corporations are seeking ways to help the bottom line. Within the software development industry, many companies are taking advantage of the world economy and the emergence of highly technical third world countries like India and Pakistan.
At this time, outsourcing in India has become the rage of the industry and many of the U.S. based software companies. According to Cyber India Online Limited, companies like IBM, Dell, GE and Microsoft (CIOL) are providing and or expending their back office support out of India. Companies like Dell reportedly plan to move its entire tech-support operation there. A Nasscom-McKinsey (Nasscom.org) study indicates that by 2008, India’s “business process outsourcing” industry will take in $21 billion and employ 1.2 million, more than 1 percent of the population. For a country that embraces technology as a way out of poverty, that’s no less than a revolution.
For businesses loo...