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With the IT industry always tipped to be the leader in innovation, it is no doubt that outstanding business models often emerge from this sector. The concept of an offshore software development company is pretty much the most pumped up trend in the IT business sphere. The reasons are many and it is notable that most software development companies themselves are setting up or offering contracts to an offshore software development company elsewhere. This practice is not just limited to the big names in the industry but also medium scale companies and is slowly even evolving into an aspect followed by even small scale IT enterprises. The main reason why companies shift to outsourcing software development activities is because they can reduce production costs greatly without having to compromise on software quality. Offering software development activities to regions where the salary scale is usually low as compared to native locations, results in large scale reduction of salary and other related labor costs which will reflect on positive financial growth of the company as a whole. Another big time savings is when taxes are considered. There are several countries that are considered as tax havens and hence they could result in considerable savings for the company. A big example would be in the case of developing nations such as India and Philippines where the tax structure is more flexible and as such there are several companies offering offshore software development solutions at moderate pricing schemes and provide high quality products as well. The only disadvantage that such a concept could face is the lack of information about the processes involved in outsourcing software development activities on the part of small companies and hence at times, they might fall behind of their expected level of output. But this is not a problem of offshore software development and is truly a case of inexperience. Companies with proper understanding and expertise in outsourcing software development reap the benefits of such a massive new generation IT trend. They deliver high quality products that satisfy their clients and within the stipulated time framework thereby managing to retain customer loyalty. There is no dearth of skilled labor in developing nations that are hot destinations for setting up an offshore software development company. The exchange rate of currencies is often a talking point of offshore development activities of any kind. For example one US Dollar is almost 55 Indian Rupees as of the moment and hence payment for services are greatly influenced by currency rates and monetary regulations in the source and destination countries. There is no need to worry about security of your outsourced work as most companies providing offshore software development services from countries like India have a reputation of offering industry best practices with no fraudulent history to their names. Moreover the quality of labor is also high in countries like India and it is only competition that results in lower service charges. So it is always a wise decision to opt for outsourcing software development activities to offshore outsourcing destinations to save considerably on costs. About Author: Amelia is having vast knowledge in application developments and technologies used for it. She is now associated with Armia Systems which is a leading software and application development company. Armia has been providing the best web solutions to different sectors and is well known for offering custom application development services, which also include facebook application development, web application development, mobile app development etc.
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