Wednesday, December 3

A Personal Guide to Offshoring to India

Business Wire News Reports.
Majesco Software President Writes New Book Outlining Process for Successful Partnering with Indian IT Firms

Outsourcing technology development projects offshore to Indian software firms creates new benefits for American corporations and stimulates the American economy, writes Atul Vohra, president of Majesco Software, in a new book, "A Personal Guide to Offshoring to India."

But to leverage the maximum benefits of offshoring to India companies must know and follow proven processes for outsourcing work, Vohra writes in his new book, scheduled for release in December.

"India represents America's next great frontier. Working together, the United States and India will grow exponentially stronger. India's strengths in offshoring match up well with the needs and interests and culture of the most powerful nation on Earth. As China is America's foundry, India is the back office. And India is well positioned to become the back office for America, so that America may deploy her resources most effectively elsewhere," Vohra writes in the book.

In his book, Vohra analyzes the strengths and weaknesses of moving projects offshore and particularly to India. He utilizes extensive research and his own experience as president of the U.S. operations for a global software development company to give a step-by-step plan that takes advantage of the strengths of the Indian IT firms. Vohra cites examples of how some of the largest American and British companies have learned to work with Indian firms.

According to Vohra's analysis, U.S. corporations reduce costs significantly by offshoring projects, and thus they free up resources to innovate, design and develop new products and ventures, which create new, higher-paying jobs and stimulates the economy. "It is the business of America to design and innovate," he writes.

Indian firms, in turn, are setting up more operations in America, generating thousands of new technology jobs. "You just have to look at the Silicon Valley today to realize how many new companies are being started by Indians," he notes.

The book identifies and analyzes the advantages for American companies of working with Indian firms. While demonstrating that the much-discussed cost savings are substantial and will continue well into the 21st century, Vohra also points out that Indian firms bring high quality and predictability to the process of IT software development. For example, of the 74 companies worldwide that have attained Level 5 of the Capability Maturity Model (CMM) process, 50 are in India.

"The bottom line is that offshoring to India represents potential savings of 40 to 60 percent since there needs to be a mix of onsite and offshore activity. Hourly rates in India range from $20 to $30 an hour compared to the U.S. where they vary from $70 to $100 per hour," Vohra writes. "Even with the added cost of remote project management, these labor rates give tremendous savings." MORE....