workstation introduced in the mid-1980s, had sophisticated graphics and the
computational capabilities required by small enterprises. These kinds of firms
had shifted from outsourcing data processing services to running their own in
platform independence that was raised from the U-W standard, merged with the
rise in demand for user customized software by small firms, resulted in a large
custom software industry.
the commencement of 1990s, the growing computing power and declining cost of
the PC improved its capabilities to program in UNIX and C language. The PC, thus, replaced the workstations
completely as the hardware platform for software programming. Later in the decade,
the huge success of PC-based networks have simplified and increased the
accessibility of applications to many more users within the organizations.
earliest software services to be outsourced in the initial days include:
Integration and maintenance.
these services need proximity to the client. Later work, such as product development
and customized software development could, at least partly, be done remotely.
Customized software did not, considered as important till the late 1970s. In the
early 1970s, US firms explore offshore regions for cheaper ways to develop software
products. India, Ireland and Israel were preferred choices given the widespread
knowledge of English and relatively low cost of programmers and skilled
implantation of a Technologically sound and technically sophisticated industry
like software into a less developed host nation has particularly been explained
by the access of transnational corporations to domestic resources facilitated
by policy reform (often after efforts to establish industry through
protectionist policies have not successes).
might be considered a particularly complex kind of service to offshore, because
the employees required to be skilled, relative to what is needed for the
offshoring of, say, routine call-centre work or voice transcription. Where is
such skilled workforce to come from if the atmosphere lacks a home market? As
software development is very closely linked with customer requirements and needs
close coordination within the firm.
within software, one would expect that work to support product software, done by
TNCs, would be the point of origination. The developing nation’s engineers could
initially provide just technical support and maintenance. Indeed, Israel and
Ireland started in this fashion.
and transnational firms jointly discovered an innovative solution. Since software
development could not come to India, skilled Indian programmers were sent to developed
nations. It’s all began in 1974 with the mainframe manufacturer, Burroughs, asking
its India sales agent, Tata Consultancy Services (TCS), to
export programmers for installing system software for a U.S. client.