Offshore Software Development India - Industry Focus

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Offshore IT Consulting & Offshore outsourcing services provider companies from India are focused on the work being outsourced by Government, Financial Services, Logistics, Telecom, Healthcare and other industries from around the globe to continue being numero uno in the Offshore IT Outsourcing services market.

• Government: Governments of the developed countries such as US, Canada and the UK are expected to increase IT spend over the next few years. Though the process not being determined and hence nothing being quantified, one thing is sure that the government will be outsourcing IT offshore in a large amount and India has to focus on earning one of the major shares in receiving those project works.



• Financial services: Financial services include securities, banking and insurance and are the biggest players in utilizing the Offshore IT Consulting services. Already the current work being outsourced in this field from the US comes to India in highest chunk as compared to any other country. According to NASSCOM, during 2001-02 this segment accounted for the largest share of Indian software and services exports. While IT investments by this vertical slowed down during 2002-03, they are likely to pick up again during 2003-04



• Transportation and Logistics: Indian companies operating in the Internet based application software and customer relationship management (CRM) and supply chain management (SCM) domains are likely to be the major beneficiaries in this sector. This is because the IT spend, particularly in the long term, by the travel, transportation and logistics sector is expected to go up significantly, particularly in Europe and Asia. And Software Development in India being the super power in the field, as compared to global destinations of the same field, has another advantage of being a part of Asia also. Hence the development of the Transportation and the Logistics sector is directly going to affect the Indian software field in a positive way.



• Telecom: According to IDC, Offshore IT services spending by telecom services providers will grow at around 20 percent in the medium term, while Offshore IT investments will grow at 11 percent: The telecom sector is a large Outsourcing IT spender and invests substantially on Offshore IT services. This can be seen in the form of various global as well as local players coming to join the party to cover up many unexploited areas of telecom in the Indian market.



• Retailing: Cost reduction and increased competitiveness are expected to spur IT spending by the retailing vertical, even in challenging times. This vertical will therefore create a major opportunity for offshore software companies, like Machrotech LLC, having an offshore development center in India, developing and supplying solutions in areas such as supply chain and logistics management, CRM, e-business and e-commerce.



• Healthcare: Several Indian companies are providing solutions such as customer management systems, maintenance of electronic medical records services, etc. for healthcare service providers, health insurance companies and life sciences and medical equipment firms. And Healthcare being an emerging field in India too, as a whole, it will surely help push the software and services markets up with latest requirements and new technology needs.



• Manufacturing: Even though IT investments by the manufacturing sector reached a plateau during 2002-03 on account of the global economic downturn, it continues to be a big investor in Offshore IT services. Manufacturing companies are focused on improving competitiveness through enterprise software related to product life-cycle management, SCM, CRM, ERP, e-commerce solutions, etc.