Resources - White Papers
India Maintains Outsourcing Advantage
The Indian IT outsourcing industry's advantages as an outsourcing
destination include overall quality, good value, increasing domain
expertise and increasingly sophisticated performance metrics and
program management skills. India stands ready to maintain its
position as the top outsourcing destination for many years to
come.
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New information Make sense of your IT infrastructure - Click
Here. technology outsourcing opportunities are largely going to
India, thanks to India's long-standing advantages. Despite negative
press coverage that India has received for problems at a few outsourcing
facilities, India is set to maintain its lead as the high-tech
outsourcing destination of choice for U.S. clients.
India has the advantage of quality, price competitiveness, infrastructure,
economic diversity and a vibrant corps of Western expatriates
embedded as managers in Indian information technology (IT) firms.
India's quality and price advantages are detailed herein.
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Why the World Is Flat
The playing field is being leveled, says globalization guru Thomas
Friedman - from Shanghai to Silicon Valley, from al Qaeda to Wal-Mart.
Thirty-five years ago this summer, the golfer Chi Chi Rodriguez
was competing in his seventh US Open, played that year at Hazeltine
Country Club outside Minneapolis. Tied for second place after
the opening round, Rodriguez eventually finished 27th, a few strokes
ahead of such golf legends as Jack Nicklaus, Arnold Palmer, and
Gary Player. His caddy for the tournament was a 17-year-old local
named Tommy Friedman.
Rodriguez retired from golf several years later. But his caddy
- now known as Thomas L. Friedman, foreign affairs columnist for
The New York Times and author of the new book The World Is Flat:
A Brief History of the Twenty-First Century - has spent his career
deploying the skills he used on the golf course: describing the
terrain, shouting warnings and encouragement, and whispering in
the ears of big players. After 10 years of writing his twice-weekly
foreign affairs column, Friedman has become the most influential
American newspaper columnist since Walter Lippmann.
One reason for Friedman's influence is that, in the mid-'90s,
he staked out the territory at the intersection of technology,
financial markets, and world trade, which the foreign policy establishment,
still focused on cruise missiles and throw weights, had largely
ignored. "This thing called globalization," he says,
"can explain more things in more ways than anything else."
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Advantages of Offshoring to India
Following are the key factors that contribute to India’s
position as a preferred destination for offshore outsourcing:
1. 1. Availability of large talent pool
2. 2. Low cost
3. 3. Fast turnaround time
Availability of a large pool of talented and motivated professionals
India has a large pool of young talented professionals. Its 380
universities and 11,200 higher education institutions produce
2.1 million graduates each year. As a result, companies have sufficient
options to choose from, while recruiting employees for their offshore
captive centers. Further, it is expected that the number of people
in the working age group in India will increase by 250 million
from 2003 to 2020 at an average rate of about 15 million per year.
This will ensure labor for companies in US and Europe where the
demand for labor is increasing. India also has the largest English
speaking population in the world. This ensures good communication
between the customer and vendor when the work is outsourced to
India.
Indian BPO employees are hard working and motivated. They are
also satisfied with their work; this can be seen from the attrition
rate in BPO in India. As shown in Table 3, attrition rate in BPO
in India was 18 percent in 2003, significantly lower than that
in other economies.
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