TAILIEUCHUNG - Offshore software development market

“Offshoring”, or “offshore outsourcing”, generally means moving the physical location of information technology (IT) services delivery from a developed nation with high wage rates to a developing country with lower wage rates | Large multinational enterprises have been the largest users of offshore software services suppliers. In 1999, more than 185 of the Fortune 500 companies outsourced at least part of their software needs to India [6]. Today, the majority of the Fortune 500 use offshore development services through third-party suppliers or have wholly-owned development centers established offshore. Some well-known companies utilizing offshore software development include General Motors, American Express, 3M, Cigna, DuPont, Weyerhaeuser, ING Group, Motorola, Accenture, British Airways, Intel, Deloitte Consulting, British Telecom, , Home Depot, Shell, Sprint, Nortel Networks, EDS, Aetna, and MasterCard. Major hardware and software giants like Microsoft, IBM, Apple, Oracle, Novel, Sun, IBM, Compaq and Texas Instruments all have extensive offshore operations. Not surprisingly, the largest industry sectors using offshore software development are those that are heavily dependent on information technology, including banking, insurance, and other financial services, communications, media, and software.

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