Why is India one of the most preferred destinations for software development worldwide?

Software Development commands extreme significance for new IT solutions and IT-enabled services due to the rising global demand. Appropriate software development gives the right amount of thrust to the web sites functionality and service quality. This tas requires thousands of s illed professionals who put in hours of research! experimentation! testing and trials. Apart from the rising demand! s illed manpower! technology and infrastructure are essential for Software development and that ma es offshore outsourcing an indispensable requirement for the IT Industry. The developed countries that desire to ma e rapid strides in the field of IT! finds it difficult to get the right amount of manpower needed. "n the other hand! developing countries! especially Asian countries li e India and #hina! have followed an IT policy that resulted in the generation of enormously s illed manpower and a well developed IT infrastructure. This has led to a real boom in outsourcing industry with the destination being India. India is one of the most preferred destinations for software development worldwide. $ith its highly s illed and available human resources! use of latest technologies and high%end infrastructure! India is capable of handling any type of software development. The strong point of software development India industry is its capacity to develop more rapidly the required software and provide innovative and customi&ed software development solutions. Study suggests that '() - *') of the +ortune-'(( companies have outsourced wor to India and the Indian IT outsourcing industry is growing by ,') - -() on an average annually. Thus! India evidently has a competitive edge and clear-cut advantages over other contending players .destinations/ in the Software Development "utsourcing business. Indian outsourcing destinations li e 0angalore! #hennai! 1une! 2umbai! Delhi and 3ol ata are developing with lots of investment in the infrastructure in terms of power! road and communications. India also has the expertise of quality certified software firms and outsourcing suppliers that not many countries can boast of. So as of now! India seems to hold its position as the leader in outsourcing service mar et. Some of the factors that ma e India a potential software outsourcing destination are4 Vast Manpower4 $ith a population of 5 billion and ever expanding army of highly s illed science and 6nglish graduates! India has unmatched potential in the human resources department even exceeding #hina in this area. Cost-effective services4 "utsourcing to India helps the companies in saving more than half of their operating costs without compromising on quality as India has a large pool of educated! trained and technically s illed manpower unli e the west! where technical talent is rare.

High-quality services4 India uses the latest in software! technology and infrastructure to provide global customers with high-quality outsourcing solutions. India has also proved it7s technical superiority over other countries that provide outsourcing solutions. India has the largest 6nglishspea ing audience after the 8.S. which is computer literate as well. State of the Art Communication Infrastructure4 Indian companies offer plenty of high-speed bandwidth via satellite connectivity! submarine cables and optical fiber networ s. Add to this the fact of countrywide mobile telecom coverage and you have ,9:* flawless connectivity with vendors and clients -;' days of a year. Time Zone A vantages! The time &one advantages between India and countries in the 8.S and 8.3 has proved to be another important factor why companies outsource to India. "rgani&ations who wish to provide their customer with ,9x*x-;' days customer support or helpdes services can outsource to India. "api #conomic $rowth in In ia4 Indian economy has been witnessing a robust growth rate for many years now and the Indian growth story is largely due to the services sector! which accounts for more than '() of the <D1. This has catapulted India in the position of world=s second largest software exporter! a leading IT superpower indeed. Sta%le &olity with Clear IT &olicies4 India has been witnessing new political maturity with large but stable coalitions that have continued the mar et-friendly reforms introduced in 5>>5. The IT and ITeS sectors have been the biggest beneficiary of these policies. The government is also trying to cut down the red tapeism by introducing single window clearances for setting up IT pro?ects and firms. The Indian 1arliament has enacted the Information Technology 0ill! ,((( recogni&ing electronic contracts! barring electronic crime! and e-filing of documents. India also has a nodal association of the IT companies called @ASS#"2 to provide a blue print of the needs and progress path of IT vendors and companies in India. Attractive Ta' an non-ta' Incentives for IT Companies4 The #entral <overnment has provided many tax and other incentives to boost investment in the IT outsourcing industry in India. Some of the benefits accruing to IT firms are4 A5( year tax holiday for companies involved in construction and:or maintenance:operation of an infrastructure complex. A5( year tax holiday to firm that generate and:or distribute power. A' year tax holiday to telecom firms providing internet and broadband services. A5( year tax holiday to IT firms setting up venture in notified IT par s and Special 6conomic Bones .S6B/. A' year tax holiday for IT and other firms setting up a pro?ect in bac ward districts and states.

AIT outsourcing and other firms also get tax incentives on exports as tax is deducted on profit for exporters setting units on S6B=s! 6lectronic 1rocessing Bones .61B/! Software Technology 1ar s .ST1/. AAttractive tax incentives are available on expenditure for research and development including deduction of 5'() on scientific research and 5(-year tax holiday for scientific and industrial research CDD companies. Today! the 2@#s have a greater focus on the Indian IT outsourcing and software development mar et. $hile a large number of companies are outsourcing their software development to Indian companies! others are establishing a presence in India and participating actively in the software export arena. Thus! India is an ideal offshore destination for software development! programming and IT outsourcing due to a number of factors some of which are categori&ed above.