Outsourcing Development Work to India

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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 In the late 1980's the rise of India outsourcing had its start. During this phase, India provided skilled contract workers for the US. Efforts to outsource projects to India arose in the late 1990's. This was driven by a combination of rapidly changing technologies and shrinking IT budgets Little by little the small offshore development projects started to multiply. In the beginning it was trial and error because there wasn't much focus on a repeatable and process driven model. During this time offshore outsourcing led to several failures. The big outsourcing force during the late 1990's came with Y2K. Work needed to get done quick and outsourcing to Indian companies was a solution to this. Indian companies had the ability to scale rapidly. Y2K conversion wasn't too high in the value-chain job, however it gave Indian companies a view of what was possible. Then came process maturity and standardization through processes. Indian companies have spent much time honing rigorous developmen... ... middle of paper ... ... http://news.com.com/2100-1011-5175699.html [4] Gupta, Sachin. For a global software company, outsourcing began at inception . World Paper. April 19. 2004 http://www.worldpaper.com/2004/april/april4.html [5] India greets H-1B cutback with a shrug -- But cap could sting if U.S. market rebounds. Electronic Engineering Times: 1, October 13, 2003. [6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm [7] Outsourcing created more jobs in US. MSN Business. IANS. http://autofeed.msn.co.in/pandoraV2/output/33601A5C-9FA2-491F-8E3B-EBC7CC04EDAF.asp [8] Pink, Daniel. Wired Magazine. The New Face of the Silicon Age. How India became the capital of the computing revolution. February 4, 2004. http://www.wired.com/wired/archive/12.02/india.html

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