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| HarryGibson
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| | Top jurisdictions for setting up an IT and softwa (27th Mar 23 at 9:46am UTC) | Quote Reply | As more jurisdictions open up to foreign trade, companies can gain access to a large pool of resources abroad. They can establish relationships with foreign partners and relocate their production to foreign locations or simply export their products to new markets. IT and software development companies are also trying to capitalize on moving production to foreign jurisdictions.
In general, the main advantages to offshore software development is lower cost compared to home country. For example, the cost of developing the exact same software in India is 50% lower than in the US. The savings generally come from lower labor costs, but offshoring IT and software production offshore can also expand the company's access to a broader pool of workers with higher skills and expertise. This could explain why 50% of America's Fortune 500 companies use offshore IT and software development. Let's look at some of the jurisdictions where opening a software development company might be more beneficial compared to others and discuss the reasons why.
India
India has long been one of the preferred software development outsourcing destinations for leading multinational companies around the world. This means that one of the biggest advantages of choosing India for your IT and software development business would be multinational demand for outsourced software development services. Meanwhile, the company would benefit from relatively lower labor costs, a broad pool of skilled workers, and a business-friendly environment with the government encouraging start-ups and small businesses. Furthermore, the IT industry is expected to grow in the early to mid teens in the coming years due to favorable political and economic initiatives by the Indian government.
United Kingdom
London was recently described as the city with the most opportunities for business and took first place in terms of technology readiness. While low labor costs are not among the benefits of starting a software development business in London, there are several other benefits that could offset relatively higher wages. Numerous hubs and incubators offer young start-ups and small companies an environment with all the necessary functions and support for less than 300 euros a month. The government is also committed to supporting the software development and technology sectors with organizations such as Tech City UK and Innovate UK with the aim of accelerating the growth of IT companies. Various tax benefits are now available to IT and software development companies in London. Other benefits to consider include a skilled workforce and high-speed Internet access.
Poland
Eastern Europe is becoming more and more attractive for IT and software development companies, with Poland ranking as the number one Eastern European country. While Poland may not offer as low labor costs as India, it can offer other advantages such as proximity to Western Europe and the ability to find common working hours with the rest of the world. Poland also shares a cultural affinity with the western world as well as other eastern countries. It is also believed to offer better product quality and business environment compared to lower cost targets for software development companies.
Each continent has additional jurisdictions to consider for registering an IT company - each with their own benefits and characteristics:
America: Brazil, Argentina and Chile;
Asia/Pacific: China;
Europe: Romania, Belarus and Ukraine.
The above countries have large enough populations to have a broad labor pool and good education systems to produce skilled software developers. The business risks in these countries are manageable and the costs are reasonable compared to the USA, Canada and Western Europe.
It is important to remember that while a particular jurisdiction may be considered the best place to start an IT business for one entrepreneur, it may not be suitable for another. Consider the necessities your business is most interested in. This can be language, geographic location, regulation of specific activities, skilled labor, or cost.
https://www.confiduss.com/en/jurisdictions/poland/business/company-formation/ | |
| Susmita Sharma
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| mybkexperience25
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