Outsourcing Development Work to India Essay

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Outsourcing Development Work to India I. Introduction Globalization has had a major impact on the way business is conducted. Companies are increasingly turning to offshore software development outlets for design management. Anywhere from one-half to two-thirds of all Fortune 500 companies are already outsourcing to India and the amount of work done there for U.S. companies is expected to more than double this year according to Forrester Research. This paper will take a look at some of the arguments for and against outsourcing IT development to India. Most importantly this paper will take a look at ethical standpoints taken on outsourcing. But first, we'll take a look at the history of outsourcing to India. II. History…show more content…
Indian companies started evolving their Y2K outsourcing relationships into projects for software development and maintenance. This ultimately lead to the dedicated offshore center model. This is how the model evolved through the late 1980s to the 1990s to the early 21st century. II. Pros According to the Commerce Department "The value of US exports of legal work, computer programming, telecommunications, banking, engineering, management consulting and other private services jumped to $131.01 billion in 2003, up $8.42 billion from the previous year" So why is everyone jumping on the bandwagon? Some of the driving forces will be addressed below. There are many reasons that companies provide for the determining factor for outsourcing. Some of these reasons include reducing costs, compensating for missing skill sets, improving quality, increasing productivity, avoiding tying up internal IT resources, expanding global capability, improving time to market, and allowing rapid response in resource demand. Savings from outsourcing have allowed reinvestment into onsite projects . An economic take on the benefits of outsourcing is that export services, insurers, for instance, generate jobs and rely on outsourcing for competitive edge. Economists say export services could potentially lose some competitive edge if they could not use foreign suppliers for call centers or other back-office operations. Foreigners are
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