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Wednesday, March 01, 2006

Software Maintenance Contracts Provide Advice for Technology-Reliant Companies

Software maintenance contracts are perfect if you need help managing your IT infrastructure or want impartial advice about your next major technology acquisition. The cost of technology may be decreasing, but in contrast, the support necessary to help run it is increasing. In order to fight this problem, companies are still investing in the best technology, but are finding much more reasonable prices for support and maintenance through software maintenance contracts.


Many companies worldwide are choosing to outsource software maintenance contracts to consulting firms in order to reduce costs. India has managed to capture almost $8 billion dollars of American software maintenance contracts. But why are so many professionals putting themselves in the hands of offshore software experts?

In 2003, a study asserted that the cost of labor in India for an IT professional is one quarter of the typical U.S. consultant’s earnings. Firms are realizing the potential of not having to pay $80 an hour for the expertise of IT professionals working across the world. Because of the advancements of technology and communication, these relationships are growing quickly.


Banks, investors and other professionals within the financial field are benefiting from the more affordable service provided by software maintenance contracts. 75 percent of people inn a Deloitte Research study said they would definitely choose off-shore outsourcing to fulfill their software maintenance contract needs in the next two years. Cost savings through outsourced software maintenance contracts have reached nearly 39 percent, indicating offshore outsourcing will only continue to boom.

Blogged By: Computer Consulting 101 Professional Kit