Offshore software development outsourcing: Low Cost illustrated by the Indian model

Abstract

One of the most common economic concerns in the literature is the quest to reduce the total costs of a firm. In this work we will focus on one of the solutions that leads the firm to achieve this objective by focusing on a complex and costly function to manage, namely software development. By adopting an Offshore strategy to entrust this managerial and economic burden to a third party, the client firm generates an extreme reduction in costs. This reduction stems from the claimant's ability to minimize production costs made possible by the weakening of wages. The model studied is that of Indian service providers since India ranks first in the Offshoring market. The result suggests that the number and quality of Indian graduates are those who give this economic and technological privilege to this country.