To achieve the main cost saving advantage many companies are outsourcing their IT related work. Companies are outsourcing the project work either onshore or offshore or combination of both. According to many surveys in 2006 India is the top outsourcing destination and will remain on top position at least for next few years.

Companies try to slash the development work and time by outsourcing the complete or part of the project work. Cost saving is the key consideration besides all other factors. But some companies are now outsourcing the work more strategically. This would be beneficial for outsourcing companies in long future run.

Outsourcing to IndiaAll the surveys like outsourcing survey from diamond consultancy 75% of the companies participated in the survey are outsourcing their work to India. From overall buyers 79% buyers are satisfied with their decision of outsourcing and they are not thinking to stop their outsourcing work in future.

The work mainly outsourced to low cost countries is software development, maintenance, Quality assurance, software testing, and software architecture work.

China is main competitor to India for outsourcing work. According to study many companies are also willing to enter into Chinese market by any means. Chinese strict government policies and their leaned attitude towards the local companies is the main concern for global investors in china.

India is also facing some challenging of increasing employee wages, affecting the overall work cost. Strong Rupee value against Dollar will also be a main concern of Indian companies. But if the Indian engineers are costlier then they must be putting their efforts more for quality work.

So in future top 5 outsourcing destinations could be India, China, US, Brazil and Russia.

In future the outsourcing trend will continue to soar. Companies outsourcing their work need to build strong strategies for more benefits in terms of productivity and profits. Before taking outsourcing decisions if they do a little study of risks and benefits of each country they can get more benefits.

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