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What is outsourcing and Offshore outsourcing to India?
Outsourcing (Offshore Outsourcing) in broad terms is a transfer of some business functions or components of business processes to an outside contractor. To remain competitive, many companies outsource as a way to reduce costs, increase efficiencies, and refocus critical resources. Many organizations have their own IT departments catering to their software and other IT enabled services needs; while others go for IT Outsourcing. According to one estimate from IDC, total global outsourcing services spending are expected to reach US$151 billion by 2003. When it comes to IT Outsourcing, the U.S. market for IT Outsourcing will grow at a rate of 22% annually, reaching an unprecedented US$110 billion by 2003, according to market researcher INPUT.

In Western Europe, the UK is the largest and most mature market, representing 35% of the total European outsourcing market in 2004. Germany, Switzerland, and Austria account for 22.8% and France 12.8%. Italy and the Nordic regions represent 7.7% and 7.2% respectively, while Spain and Portugal have 4.6% of the total market.

By 2005, 30 % of leading European businesses will include near-shore or offshore in their business and IT plans, indicating offshore outsourcing is one of the most significant shifts in IT in the near-term.

However, while global offshore sourcing enables companies to deliver higher levels of services at less cost, it also poses challenges and risks. Gartner said we will continue to see increasing backlash in connection with white-collar jobs moving offshore.

Learn here about Macronimous web solutions offshore outsourcing services.

Offshore outsourcing in India:
India remains the undisputed offshore outsourcing leader, with China and Russia continuing to emerge as strong contenders. Many other countries are eyeing the potential of providing offshore IT services.

Gartner said the 10 new countries joining the European Union in May will not challenge India or China in terms of size and number of IT professionals. However, these countries do have a part to play in Europe for near-shore outsourcing; they have distance, time zone, cultural and language connections in their favor.

Hungary, the Czech Republic and Poland, for example, are likely to attract increasing attention from German companies.

Offshore Outsourcing doesn't mean that you need to outsource your core competencies. For example if you are software vendor, you can outsource your development of the software, which includes programming and testing etc., but not the concept development, design etc.,