Future Direction for IT Firms in South Asia

Lets start by examining why such partnerships are proving to be beneficial for software, design and publishing houses located in the IT business hubs of the world. Well, the reasoning is simple, the electronic age has transformed the business world, it is very easy to communicate with a client sitting at a 12 hour time zone difference. Much of the development work in the realms of web design and development is very easy to outsource to offshore companies just by an email exchange. Upsurge in cloud computing has made large volumes of data transfer to be easier than ever. Hence large software houses in the Europe or the US can easily send out work without incurring any cost which would otherwise have been there for the physical movement of raw materials in any other industry.

On the other hand, small scale companies in South Asia stand to gain financially when partnering with Development Firms in the more technologically advanced countries. Although software houses outsource work at very low rates compared to what they would pay to their employees for a similar job, but this lower amount still proves beneficial as the labour is extremely cheap in most of the countries in Asia. Most of the outsourcing work in question here revolves around web design and development, online portals, databases, content management systems. Local startups can grow quickly by partnering with associates in the US However, where this growth positively impacts many such companies it also brings with it a drawback.

Companies soon find themselves in a cycle in which they are receiving orders from abroad and sending work back to their big brother affiliates. The disadvantage that comes with this vicious cycle is that these upcoming companies have to be a slave to what they are getting and in the process their own creativity gets sidelined. This has resulted in a lack of original killer websites which have originated from the subcontinent despite having a large developer base. If we look back and try to count such website which have made headlines we would be hardly able to spot any. Most of the websites that do originate locally from these regions are ideas acquired from their well developed functioning counterparts in the bigger IT regions. Therefore, a lot of companies get swept off in this haze and end up losing an identity of their own merely functioning as service companies.