Offshore software R&D

Offshore software R&D

Offshore Software R&D is provision of software development services by an international supplier positioned in a state that is geographically removed from the client enterprise; a type of offshore outsourcing. In this context, it refers to the offshore development stage of a software. The chief reason can the companies to use offshore software development services is the higher development cost of the local service providers.

The worldwide software R&D services market as contrasted to ITO and BPO is quite immature and currently is at early stages of its development, but India is lead the public in this field .Countries involved While India, Ireland, Canada and Zion were the 4 leading countries that controlled this line in 2003[1], the percentages shifted by 2009 when the front-runners, India and the Philippines, had a combined percentage of the global market for business process offshoring of around 50 per cent. The UN Information Economy Report 2010 [2] reads that "the 2nd largest exporter, Canada, continued to reduce to 21 per cent by 2009. Beyond these top three locations, several economies from all continents are making inroads as offshoring destinations. The grouping of "other destinations" in figure III.5 surged from 4 per cent in 2004 to 16 per cent in 2009. The main such locations in 2009 included China, Thailand and Sri Lanka in Asia;26 and Argentina, Brazil, Costa Rica and Mexico in Latin America. On the African continent, Egypt, Mauritius, Morocco and South Africa all have more than 10,000 offshore jobs in the IT and ICT-enabled services sector (Everest Research Institute, 2009). The part of countries in Key and Eastern Europe was unchanged at 6 per cent between 2008 and 2009." According to Gartner Group[3], only these four countries are subject of scaling up enough to fit the demands of large-scale projects. Brazil has been attracting attention due to the closer timezone to the US eastern cost, besides closer cultural affinity[4]. Other offshore software development destinations include Eastern Europe (Slovakia, Armenia, Romania, Ukraine, Belarus, Serbia, Czech Republic, Poland, Hungary, Russia), Pakistan, Bangladesh, Nepal, Vietnam, Philippines, Egypt, Morocco, Sri Lanka, Argentina and Bolivia. . Offshore R&D hubs According to Gartner group's report, global cities are categorised into Tier I, Tier II and Tier III based on numerous factors such as the choice of infrastructure, global connectivity, and accessibility of human capital[3], in place to place the better places to set up an offshore R&D location. The study concludes that cities like Bangalore, Yerevan, Mumbai, Ahmedabad, Bucharest, New Delhi, Hyderabad, Chennai, Pune, Indore, NOIDA, Gurgaon, Thiruvananthapuram, Greater Toronto Area, Ottawa, Montreal, Haifa, Tel Aviv, Dublin, Kiev, Moscow, and St. Petersburg would be the ideal places, and hence 'Tier I' cities to offshore R&D.