Outsource Services and Vertical Expertise Opportunity of Turkey

Outsource Services and Vertical Expertise Opportunity of Turkey

Dec 21

India, a country famous with software exportation and remarkable amount of software revenues in its total economy. This IT country aims to generate an income such as 175 billion dollar from IT services by the year 2020.  You can see the details by observing this pressroom article of NASSCOM-McKinsey. When we dig deeper into  India model, software need of internal market is lower than the demand that comes from external market. India exports software and outsource IT services to the world. And the economical model has been constructed on brain drain.

Before evaluating a country such as India here are some tips that one should know. There comes half a million IT related graduates every year. Not all of these graduates are qualified enough, yet they help in lowering service prices. It is known there are lots of people who complain about low quality work, done by Indian outsources. Country has been using its advantage of a crowded IT population by manipulating prices.

Ok then, which way should we follow or what kind of services may be valuable and make difference for Turkey? Read more…

turkey does not groom graduates in IT industry as fast as India, and having higher life standards in Turkey does not help lowering costs either. At this point Turkey might create its opportunity by insisting on vertical expertise, and ensuring difference with the high quality of service. Just as Israel has got expertise on defense industry or Germany has got vertical expertise on ERP systems.

This year 3rd TestIstanbul conference will take place on May 24-25 2012 and will be focused on increasing economical value of testing in IT industry. If I have a chance, I will try to attend the activity this year. I think the characteristic attributes of Turkish people match with testing process. We are curious, result oriented, always try to find the gaps of processes. I think one of the most significant obligation of being leader at testing is investing on education with government support. Today Turkcell Technology has started to corporate with universities in Turkey and succeded in placing a software test engineering class into official curriculum. This type of corporation between universities and private sector will raise qualified graduate count and maybe one day Turkey will be one of the software testing leaders in Europe or maybe all around the world. This can be a good choice of vertical expertise area for us.

By the way, I advice you to look at this report prepared by research firms like McKinsey, Deloitte, Gartner, Nasscom, CSIA. The report indicates offshore software development rates by sector with comparisons. Here is the link.

Offshore Software Development Rates Comparison