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Offshore Software Development


Offshore Software R&D;

Offshore Software R&D; is stipulation of software development services by an outside supplier situated in a country that is geographically inaccessible from the client enterprise which is a type of offshore outsourcing. In this circumstance, it refers to the offshore development stage of a software. The major motive behind the companies to utilize offshore software development services is the higher development cost of the local service providers. The universal software R&D; services market as dissimilarity to ITO and BPO is rather immature and presently is at premature stages of its development, but India is leading the world in this sector.

Future developments :-

In 2003, a survey by Santa Clara University showed that R&D; sector would be the next target of outsourcing The same survey also mentioned that even as of 2003, many US-based companies were adapting to a new business model where they would have the ownership of the intellectual property, but the outsourcing vendor would be given the contract for development with well defined goals in a certain period of time. Outsourcing research operations is currently a small sector in the offshoring business; however, it is growing very rapidly. As of 2006, India alone was getting 25% of new global investments on research. Hundreds of major multinational corporations have set up R&D; centers in India, the list of such companies include several big names such as Oracle Corporation, Intel, Adobe Systems, STM, SAP, IBM, and Microsoft.India's software exports are growing by more than 30% per year, which has triggered protectionist measures on the part of US government, especially the IRS, which recently passed regulations to make outsourcing research harder a lot of them are technically specialized and hold advanced degrees from world's premier institutions, which considerably enrich India's workforce.
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