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Software and Web Development in India – Negotiating the Challenges Ahead

India has ruled the software and web development world for more than two decades. Indian software industry took the advantage of the dot-com boom in USA in mid Nineties to become the leader in this field. Since then it has not looked back. However changing times have brought in new competitors like China, Philippines, etc. China with impressive growth record is catching fast on India in the software development field. Indian software industry cannot afford to sit back and bask in old glory, and let its neighbor pip it, from the top slot. Indian companies still enjoy a distinct competitive edge over their Chinese counterpart thanks to their better understanding of Western web / software development needs and expertise to deliver innovative solutions.

Indian software professionals are highly proficient in English language- area in which Chinese companies lag behind. The clients in the Western countries have no or minimal language issues with their Indian counterparts and are quite comfortable to outsource their custom web development projects to India.


However if Indian hare thinks he will continue to outrun Chinese tortoise in the race, then he should think again. China is now more focused on boosting its software industry and has set up large IT parks across the country to encourage national and international investment in this sector of the economy. The Chinese Government is far more efficient than its Indian counterpart and many investment agencies rate China a better investment destination than India. Hence if India wants to remain number one software outsourcing destination in foreseeable future then it should urgently address this issue.

Philippines with its proficient English speaking professionals is steadily making inroads into the BPO market, which has remained an Indian domain for a long time. Indian Government has in past helped IT industry by making it one of main beneficiaries in the economic reforms. However lot needs to be done on the infrastructure so that Indian companies retain their competitive edge in distant future. Major IT cities in India like Bangalore, Hyderabad, Delhi, and Mumbai have no more room to accommodate IT companies. Higher living costs in these cities push up the development costs, which in turn increase the final prices. To overcome this drawback, it is necessary to encourage more IT investment in second tier cities like Ahmedabad, Nagpur, Rajkot, Chandigarh, etc so that companies can take advantage of lower reality prices and hire skilled people at lower wages to bring down development costs, compared to tier I Indian cities, mentioned above. This will definitely help Indian companies to ward of the Chinese challenge, from the price angle.


Software and Web Development in India – Negotiating the Challenges Ahead