Hub
of Global Outsourcing
Inspired by the Indian IT-ITeS success story, several
other locations have been presented as alternate options
for offshore outsourcing. However, feedback received
from several MNCs having multi-country operations as
well as syndicated analyses comparing the various sourcing
locations has revealed that India continues to offer
and deliver the best 'bundle' of benefits sought from
global sourcing.
With significant potential still untapped,
it is expected that the global sourcing phenomenon will
continue to expand in scope, scale and geographic coverage.
As global delivery matures, multi-location strategies
will become the norm and most sourcing destinations,
including emerging locations, will grow in size. Building
on its existing strengths, India will remain the leading
destination and will continue to play an important role
in most global sourcing strategies.
Worldwide spending on IT-ITeS witnessed
steady growth in 2005, on the back of healthier spending
across key markets of the US and Western Europe, and
strong growth in emerging markets. Outsourcing continued
to be the primary growth engine with global delivery
forming an integral part of the strategies adopted by
customers as well as service providers.
The year 2005 also witnessed the coming
of age of the Indian IT multinationals, with the traditionally
India-centric, indigenous players beginning to build
noticeable presence in other locations - through crossborder
acquisitions, onshore contract wins and organic growth
in other low-cost locations. This was complemented by
global majors continuing to significantly ramp-up their
offshore delivery capabilities -predominantly in India,
vindicating the success of the global delivery model
and highlighting India's increasingly important role
in the new world IT order.
In addition to the growth in scale,
the portfolio of services sourced globally continued
to expand into higher-value, more complex activities-
further reinforcing the growing maturity of the global
delivery model.
Knowledge
Professionals in India
The large and growing pool of skilled professionals
has been a key driver of the rapid growth in Indian
IT-ITeS. This rapid growth in industry employment has
been facilitated by the combination of two fundamental
factors
| • |
A favourable
demographic profile - The underlying factor
highlighting India's long-term attractiveness
is its highly favourable demographic profile.
With nearly 60 per cent of its population between
the ages 15-59, and more than half below the
age of 25. In contrast, countries including
the US, Europe, Japan and China have a more
aged population with dependency ratios likely
to increase over the same period. |
| • |
A large, expansive
and established network of academic infrastructure
- According to data released by the Department
of Secondary and Higher Education, Ministry
of Human Resource Development, and Government
of India |
| |
- |
At the end
of March 2005 there were 343 institutes of higher
education in India and 16,000 colleges with
a total enrollment of 9.3million, producing
441,000 technical graduates. |
| |
- |
Nearly 2.3 million other
graduates and over 300,000 post-graduates each
year. |
Also, with English being a widely accepted
medium of instruction in the Indian education system,
a large proportion of the graduate pool is proficient
in English.
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