Indian IT outsourcing and remote development industry is on track to achieve its long term aspirations of US$ 50 billion in export revenues by 2008 and remain the preeminent destination for exports. The remote development India and IT outsourcing industry has grown at a CAGR of 46 percent since 1999, which is higher than the growth rate required to reach the target set in the first NASSCOM-McKinsey Study.
Based on location and people attractiveness, ten countries were identified as strong contenders for the global ITES market in 1999-- India, Ireland, UK, Australia, Singapore, Hong Kong, China, the Philippines, the Netherlands and Mexico. Among these, only two countries, India and Ireland, have created a substantive presence till date.
The Indian ITES industry has grown at more than 70 percent over the last two years and currently employs over 1,00,000 people. India is fast emerging as the "new" leader, especially in traditional services such as call centers, back office processing, etc. India is also the first country to see significant third party activity. India is a choice destination not only for remote development but for the remote services model. Remote development India is the mantra that has resulted in the phenomenal growth for IT and IT enabled services in India.
Philippines and China could pose the strongest competition to India and challenge India's supremacy in the medium to long term. Only China and the Philippines, other than India, have a sizeable, low cost talent pool, which could meet global ITES manpower needs. Governments in both countries are taking significant steps to improve their attractiveness for the ITES industry. India has a distinctive advantage especially in remote development and IT outsourcing due to its huge presence of English speaking professionals.
Other countries like Malaysia, the Caribbean, South Africa, Hong Kong, etc. have seen some ITES activity. However, the small size of their talent pools and lack of reference customers severely constrains their ability to emerge as hubs for IT outsourcing and remote development. The IT Enabled Service industry including the IT outsourcing and Remote development services, look forward for a proactive role by the Government of the day, to stay ahead in the competition.
Sunday, June 7, 2009
Indian Education System
The Indian education system places strong emphasis on mathematics and science, resulting in a large number of science and engineering graduates. Mastery over quantitative concepts coupled with English proficiency has resulted in a skill set that has enabled the country to take advantage of the current international demand for remote development and IT outsourcing.
The investor friendly atmosphere created by the liberalized policies of the Government, has resulted in huge inflows of FDI from NRIs including Overseas Corporate Bodies (OCBs) owned by NRIEvery year out of the 2.4 million graduates 97 percent find jobs in the IT industry.
This talent caters largely to remote development, IT outsourcing and high quality domestic software development. At this rate there can be approximately 17 million people available to the IT industry by 2008.
The IT outsourcing and remote development industry which currently employs 0.5 million people, will employ over 2 million people directly and create indirect employment opportunities for at least an additional 2 million people by 2008s, and also made foreign technology accessible
The investor friendly atmosphere created by the liberalized policies of the Government, has resulted in huge inflows of FDI from NRIs including Overseas Corporate Bodies (OCBs) owned by NRIEvery year out of the 2.4 million graduates 97 percent find jobs in the IT industry.
This talent caters largely to remote development, IT outsourcing and high quality domestic software development. At this rate there can be approximately 17 million people available to the IT industry by 2008.
The IT outsourcing and remote development industry which currently employs 0.5 million people, will employ over 2 million people directly and create indirect employment opportunities for at least an additional 2 million people by 2008s, and also made foreign technology accessible
Software Development Outsourcing
Western countries initiated manufacturing goods in low-cost, labor-intensive locations a few decades ago despite the high cost of transporting the finished goods, it was cheaper to make them in offshore locations than at the factory onshore.
However, any suggestion of outsourcing would have been laughed at. The major concerns everyone had were about the outsourcing vendor’s financial stability, security and service.
Development of reliable and low-cost global communication systems and the emergence of skilled labor forces in the third world nations have made outsourcing become a feasible reality. Initially banks and allied financial institutions began business process outsourcing efforts in which whole business processing tasks are outsourced.
Early success stories by these financial institutions encouraged others to promptly follow suit, and according to an estimate by 2008, worldwide offshore outsourcing expenditures are expected to reach $346 billion.
Outsourcing is particularly attractive to financial institutions because of the nature of their operations that involve database operations, which are expensive to process onshore but easy to outsource. In addition, since their savings can amount to more than 10% of non-interest expense, moving as quickly as possible to an offshoring model seems the obvious choice, right?
However, any suggestion of outsourcing would have been laughed at. The major concerns everyone had were about the outsourcing vendor’s financial stability, security and service.
Development of reliable and low-cost global communication systems and the emergence of skilled labor forces in the third world nations have made outsourcing become a feasible reality. Initially banks and allied financial institutions began business process outsourcing efforts in which whole business processing tasks are outsourced.
Early success stories by these financial institutions encouraged others to promptly follow suit, and according to an estimate by 2008, worldwide offshore outsourcing expenditures are expected to reach $346 billion.
Outsourcing is particularly attractive to financial institutions because of the nature of their operations that involve database operations, which are expensive to process onshore but easy to outsource. In addition, since their savings can amount to more than 10% of non-interest expense, moving as quickly as possible to an offshoring model seems the obvious choice, right?
Code element in the wall of Software Development
The title code element in the wall of Software Development indicates that the shift towards program sharing has touched off an anger of software design and start-up movement.
According to the experts the internet is penetrating into its Lego time period. Blocks of identical software modules are propagating and Software Development service providers are joining them together to develop a potentially extreme array of useful new programs.
This latest software signifies a noticeable removal from the rigid, at times heavily, programs of the past, which were developed and designed to run on personal computer system. This is the main reason that computer industry innovation is quickly becoming distributed.
Innovation has reached up to the extent that smaller IT organizations are launching pioneering software with the help of the local programmers as similar to the one, developed by the IT giants like Microsoft and others.
Innovation in the Software
According to the experts the internet is penetrating into its Lego time period. Blocks of identical software modules are propagating and Software Development service providers are joining them together to develop a potentially extreme array of useful new programs.
This latest software signifies a noticeable removal from the rigid, at times heavily, programs of the past, which were developed and designed to run on personal computer system. This is the main reason that computer industry innovation is quickly becoming distributed.
Innovation has reached up to the extent that smaller IT organizations are launching pioneering software with the help of the local programmers as similar to the one, developed by the IT giants like Microsoft and others.
Innovation in the Software
India Software Development is top Asian Outsourcing Destination
The latest survey suggests that India Software Development is top Asian Outsourcing Destination for Information Technology services. The survey declared the result that India and China are the top two and most destinations for Offshore Outsourcing Services and between them India is on the top position.
Survey also suggests that Singapore is on the third place for IT services globally. The survey was undertaken by some of the overseas companies to judge the best destination for IT services and result indicated that India Software Development is on the top for such services.
The survey was mainly focusing on Banking Outsourcing Services. The survey also indicates that Singapore also has the same market value such as India and China has for overseas services especially for Banking Services and it is standing on 3rd position.
Here the company surveyed almost 130 senior executives from the Financial Services Industry for their best overseas destination for banking services. The outcome suggests that India gained almost 40% of the votes while China bagged 32% and on the third position Singapore could fetch 11% votes.
Survey also suggests that Singapore is on the third place for IT services globally. The survey was undertaken by some of the overseas companies to judge the best destination for IT services and result indicated that India Software Development is on the top for such services.
The survey was mainly focusing on Banking Outsourcing Services. The survey also indicates that Singapore also has the same market value such as India and China has for overseas services especially for Banking Services and it is standing on 3rd position.
Here the company surveyed almost 130 senior executives from the Financial Services Industry for their best overseas destination for banking services. The outcome suggests that India gained almost 40% of the votes while China bagged 32% and on the third position Singapore could fetch 11% votes.
Why Outsource Software Services?
Outsourcing, in simple terms, is transfer or sharing responsibility. When you are hiring someone else to perform tasks and acquire their services you are ‘outsourcing’ your job. Today, many companies outsource a significant part of their business process so they can concentrate on developing their core business. In today’s scenario most businesses have technology in their hands, require delivery in possible least time, less skilled personnel available, discrete communication and inefficient management of various modules within a large enterprise – it appears that outsourcing software services is surely a safe bet in these circumstances.
Lower Costs: Every penny counts, especially in the case of start up businesses. Outsourcing is a sure shot means to reduce costs, in most businesses. Upon availing outsourcing, your company can reduce employee levels and related costs. When you outsource your software requirements to a country like India, where quality comes at a very competent price, you are assured huge reduction in costs.
Shift Focus to Core Business: Consider this, 40% of the Fortune 500 companies including Motorola, Microsoft, GE, Oracle, Lucent are taking advantage of outsourcing today and the list of companies is steadily growing, with software outsourcing being the lead area. As companies grow in size, they choose to outsource their software requirements so they can shift focus and concentrate on their core business goals. Outsourcing software requirements to establishments effectively monetizes spending of business players while they look at developing and sustaining their business.
Valuable Expertise to Support Your Business: You can surely expand the competitive capacity of your business with software outsourcing services. The market position you’ve dreamt of, is not too far away after you have availed software outsourcing. In today’s fast paced business world, your company can make a mark only with the support of high-quality services in order to retain customers. Outsourcing can help you maintain lower rates and provide bespoke service solutions.
Higher Productivity and Organizational Efficiency: When you choose to outsource your software needs, you are employing skilled manpower in large numbers at lower costs. This translates to increased profitability and greater customer satisfaction too. Well-managed outsourcing will ensure sufficient support to employees as well, leading to greater organizational efficiency.
The advantages of software outsourcing are many. However, software outsourcing requires proper synchronization between teams to help the company attain its goals. You don’t need to stretch your budget! Leave your competition behind with software outsourcing services. Enquire about software outsourcing services today!
Lower Costs: Every penny counts, especially in the case of start up businesses. Outsourcing is a sure shot means to reduce costs, in most businesses. Upon availing outsourcing, your company can reduce employee levels and related costs. When you outsource your software requirements to a country like India, where quality comes at a very competent price, you are assured huge reduction in costs.
Shift Focus to Core Business: Consider this, 40% of the Fortune 500 companies including Motorola, Microsoft, GE, Oracle, Lucent are taking advantage of outsourcing today and the list of companies is steadily growing, with software outsourcing being the lead area. As companies grow in size, they choose to outsource their software requirements so they can shift focus and concentrate on their core business goals. Outsourcing software requirements to establishments effectively monetizes spending of business players while they look at developing and sustaining their business.
Valuable Expertise to Support Your Business: You can surely expand the competitive capacity of your business with software outsourcing services. The market position you’ve dreamt of, is not too far away after you have availed software outsourcing. In today’s fast paced business world, your company can make a mark only with the support of high-quality services in order to retain customers. Outsourcing can help you maintain lower rates and provide bespoke service solutions.
Higher Productivity and Organizational Efficiency: When you choose to outsource your software needs, you are employing skilled manpower in large numbers at lower costs. This translates to increased profitability and greater customer satisfaction too. Well-managed outsourcing will ensure sufficient support to employees as well, leading to greater organizational efficiency.
The advantages of software outsourcing are many. However, software outsourcing requires proper synchronization between teams to help the company attain its goals. You don’t need to stretch your budget! Leave your competition behind with software outsourcing services. Enquire about software outsourcing services today!
Offshore/Onshore Delivery Model Combination
Enjoy the advantages of offshore and onshore delivery models with a combination of both! A combination of both these models, the hybrid delivery model is a sure shot means to maximize efficiency while you reduce costs. When you avail this model, you will benefit with an onshore team which will handle all client requests and offer consultation and development assistance depending on the scope of the project.
The offshore team, functioning for your business will interact with the onsite team constantly and provide all the assistance and support that the onsite team needs, in a bid to reduce implementation times. Apart from the number of operational benefits your business will enjoy, you can be relieved of project responsibilities and focus on addressing various other critical business issues.
Do you require skilled professionals to be deployed at your premises. Wondering if this is a cost effective option? Our onsite delivery model will work wonders for your business. A viable model when fluidity is the need of the hour in your business, you can choose resources based on your requirements or rely on our post development support as well.
Our team will help your business soar greater heights by combining technical/business acumen and their strong communication skills. Avail our onshore delivery model for initial consultation, custom product development development, product maintenance or support, project management and post development support.
The offshore team, functioning for your business will interact with the onsite team constantly and provide all the assistance and support that the onsite team needs, in a bid to reduce implementation times. Apart from the number of operational benefits your business will enjoy, you can be relieved of project responsibilities and focus on addressing various other critical business issues.
Do you require skilled professionals to be deployed at your premises. Wondering if this is a cost effective option? Our onsite delivery model will work wonders for your business. A viable model when fluidity is the need of the hour in your business, you can choose resources based on your requirements or rely on our post development support as well.
Our team will help your business soar greater heights by combining technical/business acumen and their strong communication skills. Avail our onshore delivery model for initial consultation, custom product development development, product maintenance or support, project management and post development support.
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