Labor is expensive and is required in bulk for both developing and maintaining software products. With a permanent workforce, you need to make payments, whether they are actively working or not. And they may not even have the required skill set. On the other hand, in outsourcing, you pay for what is consumed; no wastage at all.
China, India and the Philippines have to come to be recognized as the leading outsourcing nations across the world. Let’s see why.
In India, while there are intensive training programs to generate a bulk of developers, people also prefer to gain expertise in one autonomous part of a software module and keep doing just that. This means that a wide variety of people end up getting involved in different projects.
China has a large chunk of “smart” urban population dedicated to getting high quality education. It is a highly tech-savvy country with rapidly emerging, credible hardware providers like Lenovo and Huawei. However, language skill continues to be a limitation for the country’s BPO sector.
The Philippines seems to have the most hospitable and cost-effective environment for outsourcing operations. It boasts of an evolving tech sector as well as large population with good English and communications skills.