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Offshore Outsourcing IT has indeed become an unavoidable part of the business world. And it is springing up a world of changes to everyone directly or indirectly associated with it. While outsourcing is helping companies to dramatically lower their costs and as a result drop prices to increase demand for their products or services, attracting new clients and customers and even entering new markets; it is boosting the economic growth of offshore IT outsourcing countries like India.
It is sure that the companies that are not able to take the advantage of the global IT services industry will loose to those that are stepping in or have already stepped into this market. According a study by the AMR Research, companies use as much as 80% of their IT budgets to maintain the status quo. It is expected that if this pace is kept up, then by 2010, cost saving from offshore outsourcing will create an additional $30 billion per year in new investments for US companies. Research predicts that, in the next six years, 15% of IT jobs required by U.S. - based companies would be performed in India. By then, the Indian IT labor force will be larger than three million, and half of the workers will be performing jobs for US companies. With average US IT fully loaded, labor costs would be approaching $80K per year, a worker in India represents a $36K savings per year, and 1.5 million workers represent $54B in savings each year. AMR Research shows that companies reinvest 60% of savings from outsourcing in IT or business unit projects, that's $30B per year.
The Indian IT outsourcing industry is developing day by day with many a new company joining the race, each year. In fact the industry has reached a stage where competition is indeed noticeable. India is considered one of the best offshore IT outsourcing locations by a huge number of overseas companies. The top companies of India presently are Affiliated Computer Services, Satyam, Cognizant, Perot System, Infosys, Patni, TATA Consulting Services, HCL, GenPact, and Mellon. All these companies are offering best services in order to attract customers. They compete at every aspect from prices to services; user-friendly websites etc. These companies in order to win the customers offer products and services of finest quality and cheapest prices.
The competitive spirit among these companies leads to better prospects for the development of IT outsourcing, in the country. And in order to emerge to the top position, every company offers best services. They use latest technologies, employ skilled staff, maintain competitive pricing etc. Every step is taken keeping in mind the satisfaction of the customer. It is this competitive spirit among the companies that make sure that outsourcing industry flourish. A 2003 study by Goldman Sachs had predicted that during the next 50 years, India will have the fastest-growing economy in the world even larger than Italy in 10 years and larger than Britain's in 15 years or even third largest that would be five times of Japan by 2050.
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