Software outsourcing refers to the software demand activities completed by an enterprise outsourcing all or part of the work in a software project to an enterprise providing outsourcing services in order to focus on its core competitiveness business and reduce the cost of software projects. Now business process outsourcing (BPO) has become a new development trend of outsourcing services, and will become the main content of outsourcing in the next few years.
BPO includes human resources, procurement, accounting, customer center, logistics, R&D, marketing, factory operation, and training. These categories can be further subdivided. Not only does the IT industry need BPO, but every business of BPO is inseparable from the support of IT business, which creates opportunities for IT outsourcing. A software development project usually goes through several major stages such as requirements analysis, design, programming, and testing.
software is an industry with rapid changes and new technologies emerging in an endless stream. It is also an industry with relatively high human resource costs for . Companies need to use outsourcing and procurement to obtain the components of the products to be developed, and maximize the benefits from the social division of labor and cooperation and resource sharing.
In recent years, with the launch of the entrepreneurial spirit, the emergence of entrepreneurial project outsourcing companies has emerged, not only to reduce costs, but to solve the problem of hiring technical personnel or being unable to manage technical personnel.
From the perspective of the content of software outsourcing, everything that is subcontracted is the non-core content of the software system. The core content and technology are firmly controlled by large software developers who are general contractors. Therefore, doing software subcontracting to provide software outsourcing services for large foreign software companies is just like migrant workers working for the head of a contractor, they are only doing the coding work of the lowest part of software outsourcing.
If you have been doing subcontracting in software outsourcing, you will not have any intellectual property rights to the product, and you will never have any technical competitiveness.
As we all know, India is currently the world's largest software outsourcing base. Statistics show that the Indian software industry accounts for about 1/3 of the value of the global software industry.India is the world's first outsourcing market for software outsourcing, accounting for 55% of the global service outsourcing market. Due to the large scale of the industry and superior labor quality, India has become the best country for European and American companies seeking offshore services. Major software companies in the world are in India has a large branch.
Software outsourcing occupies an important position in India's national economy. Statistics show that the software industry accounts for 7% of India's GDP , and creates 2.77 million jobs. In 2018, India’s total exports of goods reached 324.6 billion U.S. dollars, and service trade exports reached 184 billion U.S. dollars, of which software exports reached 136 billion U.S. dollars.
As a developing country with a weak economic foundation, India's IT industry has been able to develop rapidly and become the world's largest software outsourcing base. What are the reasons? The author believes that it can be attributed to the following reasons:
1. Strong government support
India's software outsourcing can develop into a pillar industry, inseparable from the government's strong support. At the same time, it is also related to a person's special contribution. He is F·C·Kohli, known as the "Father of Software" in India, and the founder of Tata Consulting Services (TCS), India's largest software service company.
As early as 1974, Tata Consulting's service provided software outsourcing business. It has been doing well in European and American countries, and business orders have been flooding in. As a result, Kohli, who was too busy, transferred a large number of overseas outsourcing orders back to China and handed them to various small and medium-sized enterprises to complete. Tata became the "contractor" of the software outsourcing business.
Due to the rapid development of the global IT industry, existing companies are unable to complete orders, so Kohli has established more than 10 software training centers in major cities in India to recruit a large number of software talents for training.
These trainees can not only learn advanced software development knowledge at the training center in Kohli, but they can also be employed immediately after the training.Tata Training Center can be regarded as the "talent training base" of India's software industry.
At this time, all countries in the world have not yet realized the huge market prospects for the future development of the information industry, and have focused their development on the manufacturing industry. This has enabled India to win the development opportunity.
Under Kohli’s appeal and promotion, the Indian government has decided to develop the software industry since the 1990s, and has given strong policy support, not only exempting all taxes and removing restrictions, but also cultivating technology bases and other aspects. Administrative support, while enjoying priority in bank credit. In addition, the Indian government has encouraged the IT industry as a symbol of economic growth.
The government's strong support has created good objective conditions for the development of the software industry. In addition, India started early in this field and timely met market demand through talent training. Adding up the above conditions, the development of India's IT industry can be described as 's "time, location, and harmony".
The trainees who walked out of the Kohli training center later became entrepreneurs and technology executives in the Indian IT industry, driving millions of practitioners and creating an average annual output value of US$175 billion for the Indian software outsourcing industry. In 2020, after the death of 96-year-old Kohli, the Indian government awarded him the honorary title of "Father of IT" in recognition of his outstanding contributions to the Indian IT industry. Prime Minister Modi also sent a message to mourn him.
2. A good foundation in English is transformed into a natural advantage for the development of the software industry
Objectively speaking, the rapid rise of the Indian software industry is closely related to the country’s language environment, because India has long been the United Kingdom In the colony, English has been used for more than 200 years. Until India's independence, English was still the official language, which created extremely favorable conditions for India to train software talents.
eliminates the problem of overcoming language barriers when designing software,As a software industry that uses English as the programming language , India naturally has a natural language advantage. And because of the common language, the software designed in India can enter the European and American markets very smoothly.
On the other hand, the Indian government attaches great importance to education. Through higher education, the country has a wealth of human resources. Especially thanks to India's good computer education mechanism, which emphasizes the cross-education of computer discipline and other disciplines. Most software engineers have more than 10 years of work experience, and many of them are senior technical and managerial talents returning from the United States.
In fact, the software industry is a knowledge-intensive field, and it is inseparable from the training of high-quality talents. Education is the fundamental driving force for the development of India's software outsourcing industry. This should be attributed to India's early imitation of the Massachusetts Institute of Technology in the United States and the establishment of many world-class universities of science and technology. The most famous is Indian Institute of Technology , its acceptance rate is even lower than many famous universities in the world, the acceptance rate is less than 2%.
So in India, people will say that first-rate students go to polytechnics, and second-rate students go abroad to go to prestigious American schools. Currently, Indian University of Technology , University of Delhi , Nehru University are all ranked top universities in Asia.
Because of the use of English, Indian universities can keep teaching synchronized with famous universities in the United Kingdom and the United States. The courseware can be "seamlessly connected" and can be used directly for teaching.
data shows that in the "Fortune 500", the proportion of companies led by Indian talents is 33.2%, and this proportion is still rising. Among the three major IT companies in Silicon Valley, in addition to apple ,The CEOs of Google and Microsoft are both Indian. One-third of Silicon Valley's engineers are from India, and 15% of middle and high-level leaders are of Indian descent.
India started to learn English in elementary school, which is an important reason why they have a more competitive advantage in software openness than China. It can be said that in terms of language, India has cultivated a large number of international talents with low educational expenses. Since the official language is English, it is easy to communicate with Western countries, which has promoted the flourishing development of India's software outsourcing industry.
3. Cheap labor price
The reason why India can become a global software outsourcing base is not only because Indian software companies have advanced technology and strong strength to handle large software projects, the key reason is India’s cheap labor salary. This is also the reason why the world's software giants have set up branches in India one after another.
The average annual salary of a software engineer in India is about 555,000 rupees , about 47,402 yuan, even the hottest AI intelligent engineer currently has an average annual salary of not more than 750,000 rupees, about 64,057 yuan. In China, the annual salary of ordinary Android engineers is more than 200,000 yuan, which is almost five times that of their Indian counterparts.
Because India's human resources are so cheap, its software outsourcing price is extremely competitive globally, and its considerate service has won the trust of customers. In India's "Silicon Valley"- Bangalore , as well as Delhi, Mumbai and other places have brought together a large number of software development companies, forming a group advantage and agglomeration effect of software development.
Conclusion
Although India's software outsourcing industry is very developed, its software industry is still at the middle and low end of the global value chain. It is undeniable that the most developed country in the software industry today is still the United States.At present, the US IT industry accounts for more than 40% of GDP, while China's share is still less than 10%.
And Indian software ranging from operating systems, cloud computing to functional software, and even consumer applications, instant messaging systems are all controlled by facebook, titok, and whatapp, and the browser market is controlled by google , e-commerce, and cloud services The market is also controlled by Amazon.
In contrast, China’s software industry is not as developed as the United States, but in some subdivisions, Chinese software now has domestically produced alternatives, and with the United States’ sanctions and suppression, China’s software industry is growing rapidly and gradually emerging Given the changes from scratch, the author believes that, given time, China’s software industry will surely have a blockbuster day!
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