Competitiveness and Remote Development India

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.