Indian IT Cos Eye Benefits From The Rise In U.S. Domestic Outsourcing


Bangalore: Domestic outsourcing in the U.S. is on a rise, claims the new Forrester report prepared by analyst Stephanie Moore.

The local outsourcing from U.S. to U.S. is becoming a new trend in the American market substituting the model of offshore outsourcing in which India had emerged as the top notch contender. The change that is beginning to take over the market by leaps and bounds is attributed to five major reasons by Moore.

The reasons being:
1.Software oriented companies require developers who can communicate synchronously, exchange their dynamic requirements, and build software to meet these requirements.
2. The agility, fast delivery of the finished product and immediate market availability.
3. Inflated prices, high abrasion, and declining quality involved in offshore outsourcing.
4. Tighter Visa regulation enforcements.
5. Unemployment in U.S.

The report quotes that clients are experiencing higher productivity rates and low time-to-market while employing domestic outsourcer. The time needed and the number of people employed is less and that is overshadowing the labor rate that is riding double.