Sunday 17 November 2013

Factors that Encourage Offshoring

In my previous posts I have mentioned factors that effect offshore software development. But in this post I will highlight the factors that motivate companies to go for offshoring



  1. Economic Factors: lower salaries, interest rate, development of capital markets, capital costs and emergence of technology centers.
  2. Political - Legal conditions: labour, taxation and competition laws.
  3. Socio-demographic Factors: population size, age structure, education levels and workforce motivation.
  4. Technological Factors: development in technology and transportation.




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