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Ever since the technology boom, India has been enjoying an enviable monopoly in the field of software development. More and more companies from across the world are relying on Indian talent and infrastructure to develop their high-end software development works. 

The Indian dominance as a favorite software development destination is due to a multitude of facts, a few of which are listed below:

Locational advantage
India enjoys a locational advantage. The advantage it enjoys over other countries, is a 12-hour difference with the world's largest market - the USA. This enables US companies to establish round the clock software factories by subcontracting to Indian companies.

There is a tremendous latent potential of manpower supply in India. India has the second largest pool of technically qualified English speaking manpower (second only to the United States) available at a comparatively lower cost. Demand for manpower continues to surge. India has the capacity to supply about 70,000 software professionals each year, which hardly meets the global demand. Indian software industry can therefore continue to have a manpower led growth.

Low cost
Much of India's strong growth in software in the past is attributable to the low cost of Indian programmers. Indian programmers are paid only about 15-20% of his/her counterpart in developed nations. Even among competing countries Indian software professionals were paid the least. This provided domestic software companies a cutting edge in pricing for software projects. However the low cost edge has now been considerably eroded with most software professionals getting remuneration at par with global standards. Nevertheless in terms of cost-quality, India continues to offer significant 'value for money'.

Wide gamut of services
India's advantage was that it could offer a wide range of software services from clerical support/data processing to sophisticated software systems. The low cost and easy availability of manpower at all levels enabled it to offer labor intensive support services, while the technically qualified and skilled personnel enabled it to offer quality solutions involving sophisticated software systems.

Project management skills
Indian companies have a rich experience of working with large global software companies. The forced subcontracting of large Y2Kprojects has also provided Indian companies with substantial experience in handling and executing large sized projects.

High on learning curve
Indian companies have over the last decade built expertise on a variety of platforms - from legacy systems to the latest state-of-the-art systems.

Infrastructure facilities
India has more than 1200 high-speed communication links of 32-256 kbps, connecting Indian software companies with their clients abroad. A majority of this infrastructure and communication links are provided by Software Technology Parks of India (STPI).

Conducive regulatory framework
Software industry has enjoyed virtually unbridled liberty to conduct its business in the best possible manner. Government has also encouraged the industry by providing tax benefits to exporters.

Quality backed by the industry leaders
Global majors like GE Capital, American Express, Lufthansa, British Airways, Singapore Airways, etc have already invested in IT enabled services in India. The specific services include transaction processing, call centers, billing, credit card processing, medical transcription, etc.

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