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Outsourcing to India

August 7, 2009
Outsource to India has become very popular destination for outsourcing because of quality, technological agility, flexibility, cost control, time-to-market and competitive advantage.
Outsourcing entry in India:
  • In 1980s British airways is first entered in New Delhi as a base of back office operation.
  • In 1980s American Express (JAPAC) is second entered in Delhi as a back office operations
  • In 1990s General Electric (GE) started as a back office in Gurgaon.
  • In 2002 Spectramind was bought by software major Wipro and BPO by then had become main stream like the IT Industry in India.
  • By 2002 all major Indian software organizations were into BPO, including Infosys (Progeon), Inforlinx, HCL, Satyam (Nipuna) andPatni.
  • By 2003 Daksh was bought out by IBM and later in 2006 MphasiS by EDS.
  • Then service arms of organizations like Accenture, IBM, Hewlett Packard, Dell too set up captives in India.
Today￯﾿ᄁ￯ᄒタ￯ᄒルs India:
Different preferences for offshore regions in different countries.
  1. India is a talent-rich country
  2. India exports software to 95 countries around the world
  3. India enjoys the confidence of global corporations
    • 82% of the US companies ranked India as their first choice for software outsourcing
    • Bill Clinton applauds India‘s brainpower: says Indian-Americans run more than 750 companies in America’s Silicon Valley. “You liberated your markets and now you have one of the 10 fastest growing economies in the world,” said President Clinton.
    • Bill Gates says India is an IT superpower: strikes strategic alliances with Wipro and Infosys to develop applications on the .Net platform
  1. India Offers Multiple Advantages
  • Outsource to stay competitive. Leading companies worldwide realize that to maintain stay ahead, they need to reduce costs, provide the best quality, use the latest high-tech skills, and be reliable and innovative
  • Outsource to a mature industry with world-class systems, systems and quality
  • Of the 23 software companies in the world that have achieved the prestigious SEI-CMM Level 5, 15 of them are Indian. India will soon have the highest number of ISO-9000 software companies in the world, according to Nasscom.
5.India has state-of-the-art technologies for total solutions: outsource turnkey projects
  • Offshore assignments have moved up the value chain – from data entry to large and complex turnkey projects of 200 to 300 person years.
6. IT is a major thrust area for the Government of India
7. Increases job and the annual revenue of our country.
Future outsourcing growth in India:
India’s outsourcing industry set itself the goal of lifting revenue almost five-fold to 80 billion dollars by the end of 2011 by tapping new markets and a booming local economy.
  • Information Technology can creates more jobs than others field. One
Job in IT can facilitate 21.3 jobs growth in other areas.
  • Becoming software outsourcing brokerage powerhouse
  • IT workers in China & India are pushing their regional economies to a new high level.
  • India￯﾿ᄁ￯ᄒタ￯ᄒルs IT business continues to grow 30.7% annually with revenue of USD $ 40B annually in the year 2006-2007.
  • Projected shortage of 3 million IT workers in 2010 and 10 million IT workers in 2020 globally.
  • Both India and China are also experiencing shortage of IT workers but have plans   to train more  up to 3 million to fill this gap by 2012.
  • Establishing research & development (R&D) centers with the goal: R&D achieve 5% of GDP 2010
  • Focusing on open-source software and moving to influence global software markets
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