While offshoring to India offers savings of up to 50% on labor costs, enterprises thinking of offshoring smaller initiatives should reconsider. The high technical skills and best-practices of the leading offshore providers are available only to enterprises considering offshoring the work of at least fifty staff. Avoid the very high risk in selecting and using a smaller offshore supplier.

Large Offshore Suppliers Have Good Track Record

The leading offshore providers in India have established excellent track records in the quality of application development support and in their ability to provide labor cost savings of up to 50% relative to North American and European domestic labor costs.

Smaller Players Are a Mixed Bag

Below the level of the European and North American major players such as Accenture, Capgemini, and IBM, there are a large number of small players — ranging from informal alliances of independent contractors, to firms of hundreds of employees...