software development tax
Outsourcing software development to India – Cost effective Resourceful “SAFE”
The factors such as low tariffs, availability of bandwidth at low cost, competition and growth in technology has made India the first pick for outsourcing software development jobs. But one thing that is often ruled out of such discussions is the legislative framework of the country regarding offshore software development. Apart from being the most cost effective and resourceful option India also has the most well structured legislative framework for offshore software development in the trail of developing countries. After the enactment of Information Technology Act 2000 the cyber frame work of the country is not to be mistaken as a shady affair.
Legitimacy to digital signatures:
Digital signatures play a crucial role in offshore outsourcing especially in closing agreements. It not only saves the time but is also a secure way of transferring codes and files over the internet. Therefore now companies can fall into contract through electronic means in the light of secure identity and legality of documents provided by digital signatures.
Legal recognition of transactions through electronic data inter-change:
India laid the order for legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, commonly referred to as “electronic commerce”, which involve the use of alternatives to paper-based methods of communication and storage of information and to facilitate electronic filing of documents with the Government agencies. This has secured the transfer and handling of intellectual property in offshore outsourcing transactions.
Indian Copyright Act of 1957 amended in 1994 to outlaw software piracy:
“Computer programme” has been included in the literary work under Indian copyright act. “Computer Programme” means a set of instructions expressed in words, codes, and schemes or in any other form .This protects the intellectual property of the clients in the form of idea, source code or software involved in offshore transactions outsourcing software development to Indian companies.
Legal framework for e-Commerce and e-Transactions:
India has well laid legislations for e-Commerce and e-Transactions including e-contracts, computer crime prevention, electronic filing and documentation. This is based by e-transactions law, privacy/data protection; information security law including cyber security, public key infrastructure, cyber crime, taxes; intellectual property, e-financial services and more.
Convergence Bill:
This is another thing facilitating offshore outsourcing transactions. This is a unified billing system that simplifies tax calculations, credits and adjustments, handling collections, account suspension/reactivation due to non-payment, and reporting. Furthermore these billing systems are closely tied to customer care systems that enable customer acquisition, service order entry, and contact management.
About the Author
QBit Systems is a global IT services provider offering Software Development services to businesses worldwide through its state of the art ISO 9001:2000 certified Offshore Development Center (ODC) in India. We are a Microsoft Gold Certified Partner committed to deliver top level benefits to the end users. Our integrated network of development services is complemented by onsite, offsite and near-shore capabilities in major international markets.
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