Software companies are required to produce lots of software products for their clients. These software products being used for giant organizations such as airlines, banks, financial institutions, big corporate houses and various government bodies, where lots of data being stored and updated every day. IT (Information Technology) software companies in US, Canada and Europe who are taking up these projects require massive investment in infrastructure as well as huge manpower to work on them.

This is competitive world and every industry wants to be very competitive in every business. So is IT software industry. To cut the labor costs, IT software companies are increasingly outsourcing their jobs to developing countries in Asia, Latin American, Africa and Middle East. Since “cost saving” is the prime objective of IT software firms, it is estimated nearly 50% of IT software jobs being outsourced to developing nations..

Most of the jobs outsourced are creating software in .Net, Java/J2EE, database solutions, smartcard solution and wireless/mobile application developments. BPO (Business Process Outsourcing) are also helping their foreign clients in voice and non-voice solutions, customer care, data management and so on. Outsourcing firms hire well educated English speaking young staff, who are energetic and willing to work in shifts. These outsourcing companies charge very economical hourly rates and most of them are working even less than $7/- per hour, which is much lower than standard hourly charges in U.S.

India has taken the lead in IT outsourcing jobs. Its Bangalore city is now said to be Mecca of IT industry. With favorable government policies and substantial investment in infrastructure are making India as the great attraction for IT software outsourcing jobs. By outsourcing their IT jobs to India, U.S., Canadian and European companies will not only save labor costs but this will also help them to be more competitive, concentrate more on core competent areas and enjoy tax benefits. Once the IT software jobs are outsourced, companies can concentrate on marketing, advertising, launching of new products, finding new customers and so on.