Most people and companies in the west, especially in the English speaking world, know about the benefits of offshore outsourcing. Still there are some exceptions. Countries like Germany, Norway, Denmark and Austria are not yet 100 % convinced about the benefits of outsourcing to India.
In this article we want to show in a funny way what could be done with the money which can be saved by the means of offshore outsourcing.
So how much can be saved using outsourcing to India?
Till a few years ago the prices for outsourcing services to India were pretty low. The reasons were a weak Rupee and low salaries in the IT sector. In the past few years though this has changed a lot. The salaries have increased strongly for qualified software developers from India, especially for people with 3 + years experience. During the same time the salaries in Europe and in the US have remained stagnant. The result is, that the gap between having an IT project done in India versus it being done in the western world has decreased immensely. Still it is possible to save up to 50 % in development costs compared to prices in the west. And who would not like to save 50 % on a product or service? Plus, you can be pretty sure today that you will get a service with the same quality, as you are getting it in the west. So let’s see what you could do with those savings.
Let’s say you have a project which would take 3 man-months to complete. Suppose the development would cost you 43 000 US Dollars to develop. In India you would be able to do it, if we consider the 50 % saving, at a cost of 21 500 US Dollars. Now you have an extra 21 500 US dollars at your disposal.