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05. INFOTECH |
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India's
offshore outsourcing revenue grew 34.5%
India's
software and services exports totalled $17.2 billion in the
fiscal year to March 31 this year, up by 34.5 percent from the
previous year, according to India's National Association of
Software Companies in Delhi. The country's exports of software
and services are expected to grow by between 30 percent and
32 percent in the fiscal year to March 31, 2006, Nasscom President
Kiran Karnik. |
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In the year
to March 31 this year, exports of IT software and services grew
by 30.5 percent to $12 billion, while exports of business process
outsourcing (BPO), call center and related services grew by
44.5 percent to $5.2 billion.
The U.S. accounted for about 68 of India's outsourcing exports,
with Europe accounting for another 24 percent. |
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About 35 percent
of Indian exports of IT services and 60 percent to 65 percent
of the exports of BPO, call center and related services came
from wholly owned operations in India of multinational companies.
Alongside the Indian outsourcing companies offering services
to companies in the U.S. and Europe, a number of multinational
services companies, technology companies, |
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and user companies
have set up software development, BPO and call center subsidiaries
in India. Domestic (non-export) revenue from software and services
totalled $4.8 billion in the year to March 31.
India's outsourcing industry currently employs over 1 million
according to Karnik, who added that jobs were created not only
in the larger cities but in smaller towns. |
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Microsoft
– Nasscom Certs for Indian IT firms |
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India's
software and services exports totalled $17.2 billion in the fiscal
year to March 31 this year, up by 34.5 percent from the previous year,
according to India's National Association of Software Companies in
Delhi. The country's exports of software and services are expected
to grow by between 30 percent and 32 percent in the fiscal year to
March 31, 2006, Nasscom President Kiran Karnik. |
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| |
In the year
to March 31 this year, exports of IT software and services grew
by 30.5 percent to $12 billion, while exports of business process
outsourcing (BPO), call center and related services grew by
44.5 percent to $5.2 billion.
The U.S. accounted for about 68 of India's outsourcing exports,
with Europe accounting for another 24 percent. |
|
About 35 percent
of Indian exports of IT services and 60 percent to 65 percent
of the exports of BPO, call center and related services came
from wholly owned operations in India of multinational companies.
Alongside the Indian outsourcing companies offering services
to companies in the U.S. and Europe, a number of multinational
services companies, technology companies, |
|
and user companies
have set up software development, BPO and call center subsidiaries
in India. Domestic (non-export) revenue from software and services
totalled $4.8 billion in the year to March 31.
India's outsourcing industry currently employs over 1 million
according to Karnik, who added that jobs were created not only
in the larger cities but in smaller towns. |
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| REASONS TO OUTSOURCE TO INDIA |
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| As India emerges
as a global outsourcing hub, the Industry is forecast to explode
at exponential rates - from 23,000 people and $ 10 million
pa in 1998 to over a million people and revenues in excess
of $ 20 billion by 2008. Pivotal segments are Back Office
operations, Medical Transcriptions, Insurance claims Processing,
Customer Interaction Centers and Content Development. Current
trends suggest that the country is well on course. Here are
some of the highlights: |
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The abundant skilled manpower
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High in areas such as qualifications, capabilities, quality
of work, linguistic capabilities and work ethics,
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Ahead of competitors such as China, Philippines, Ireland,
Australia, Canada etc.
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Indian companies have unique capabilities and systems to
set, measure and monitor quality targets.
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India is able to offer a 24x7 services and reduction in
turnaround times by leveraging time zone differences. India's
unique geographic positioning makes this possible.
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Many state governments in India are offering incentives
and infrastructure to set up IT enabled services.
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About 100,000 engineers graduate from India every year.
Many of these engineers are employed with call centers for
troubleshooting and providing technical support.
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Salaries are dramatically lower compared
to the pay scales in the US.
The average monthly salary in
India is $400-700 compared to
$2,700-2,800 in the US.
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A booming IT industry, with IT strengths recognized all over
the world.
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Cost-effective manpower: In a call interaction center operation,
manpower typically accounts for 55 to 60 percent of the total
cost. In India, the manpower cost is approximately one-tenth
of what it is overseas. Per agent cost in USA is approximately
$40,000 while in India it is only $5,000.
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Technical support: India graduates about 100,000 engineers
each year. These can be used in call centers for troubleshooting/tech
support, as the salaries are dramatically lower than in Europe
or the US.
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The Government of India has recognized the potential of IT-enabled
services and has taken positive steps by providing numerous
incentives.
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IT is one of the Government of India's
top five priorities.
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The National IT Task Force submitted its 108-point Action
Plan to promote IT in the country.
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The Government of India has approved the plan and is in the
process of implementing it.
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100% foreign ownership permitted in IT Enabled Services industry
unlike other sectors where foreign ownership is restricted
» Software
Technology Parks (STPs) established
» To
provide ready to plug IT infrastructure and telecom facilities
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Single window clearance for all regulatory compliance issues.
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Basic, Cellular, Paging and Internet Services privatized.
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Domestic leased circuit tariff reduced by 80% in last 1 year.
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International Internet Gateway privatized-likely reduction
in tariff. |
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