Software outsourcing industry has a history of about 20 years and has developed to be a new services outsourcing industry based on network, communications and computer technology today. Network and communications technology is becoming more mature to provide the foundation for the industry to achieve global offshore businesses. So it is being said: "following the global transfer of manufacturing, IT-based services are at an unprecedented speed to realize transnational transfer which is also called by the industry insiders as IT-based offshore outsourcing services." Therefore, software outsourcing would be included in services outsourcing as a part of it.
In 1988 due to the great need for importing large quantities of parts and components when we did not have the capability to export complete machine, so problems occurred with foreign exchanges when importing components. At that time our country demanded enterprises to achieve balance between import expense and export earning. As a last resort, we had to negotiate solutions with IBM, and our approach was to do software export processing for IBM in order to keep foreign exchange balance which is called "software outsourcing" today.
It is just a few years that software outsourcing transfers to services outsourcing, but its operating model has undergone tremendous changes. It is just the beginning and no one can predict the future. There may be a similar way of development for services outsourcing and manufacturing industry. Manufacturing industry originated from processing parts for overseas manufacturers, for a very long period of time, it is known as processing materials supplied by clients and engaging in compensation trade. And then they entered the whole item processing, which was then followed by complete machine manufacturing and OEM manufacturing. Today's Lenovo and Founder were once agents of IBM-PC. Their accumulated funds and technology enable them to buy IBM-Lenovo PC business last year.
Whether software outsourcing industry will take the same road of manufactory? India, the leader in services industries has been a few steps forward before us. They make progress from data entry, basic tests toward development, design, user solutions and even consulting services, beginning competing with the frontline services companies such as IBM, HP. On the other hand, they are forcing the transfer of white-collar job opportunities from developed countries to India. Call center, financial management, human resources management, as well as many non-core business processes operation are moving fast to offshore India. As the process of global integration is being further understood, we believe that the industry will be prospered uncontainable like the manufacturing industry.
