According to the Wikipedia definition an offshore software development is a process wherein software development services offered by software developers in India. Though Indian software developers are located away from the location of the company’s country, still they are being managed by the company. Moreover, offshore software development in India is done fundamentally for the reason that India offers the most cost-effective software development services with its pool of talented software development.
Companies in the USA, Canada, Australia, or the other developed nations are looking to reduce the production cost and for them India serves the purpose as it has extended number of software developers who can offer their services at extremely reduced cost. Moreover, when IT companies see various advantages in their software development to be done in developing countries like India at the fraction of cost of what would otherwise have been if the same would have been done in the original country, the companies try to offshore their research and development work to India.
Offshore software development in India is done for the reason that many of its cities have quality infrastructure and global connectivity as well as immense human capital. Offshore software development often compared with Business Process Outsourcing is different in the sense that while in BPO there is outsourcing of services to third party service provider, in Offshore software development the same company opens its software development center in India at its own cost and hire the software professionals at its payroll.
There is huge conflict in politics and economic of offshore software development. Whereas traditionally countries such as the USA and Canada has never been transferring their technology to India and lose their technological prowess, now through various offshore software development centers in India the same is happening much against their actual wish. While offshore software development in India is economically beneficial for the USA and Canada, it is politically incorrect for the countries would lose the much enjoyed domination in technology front to India.
Globally renowned IT companies from the USA, Canada, UK and Australia have started their offshore software development centers in India. Major global IT firms such as Oracle Corporation, Intel, Adobe Systems, STM, SAP, IBM, Microsoft, etc. have their offshore software development centers in India at various cities. In some instances the pattern has been seen that India has even bigger software development center for IT company outside their original country which reminds that India has huge potential in software development and the major global IT firms are trying to exploit the same for their advantage.