Why India continues to be the most preferred outsourcing destination:

Leading global business intelligence and consultancy firm Giga predicts that, compared to other competing countries such as China, Ireland, Israel and the Philippines, India will continue to dominate as the preferred off shore country, with the industry growing by at least 30 percent during 2003.

Today, MNCs are rushing into India to stake a claim to the outsourcing market. While a large number of companies are outsourcing their processes to Indian companies, others are establishing a presence in India and participating actively in the outsourced services game. The MNC sector emerged as an important segment contributing Rs 9,855 crore of the total exports of Rs 35,600 crore in the year 2001-02, translating into 27% share of the total exports.

Scope

A booming IT industry, with IT strengths recognized all over the world

Large Human Resource

India enrolls around 30 million students in high schools & pre-graduate courses every year, 95% of which opts for employment in the IT industry. This means that the country would make available approximately 17 million people to the IT industry by 2008..

Quality Manpower

The Indian education system's strong emphasis on quantitative subjects results in a large number of science and engineering graduates, which coupled with English proficiency has successfully met the international demand for IT. Besides, Indian programmers are also reputed for their strong technical skills and their eagerness to accommodate clients..

A vast workforce of educated, English speaking, tech-savvy personnel: A boon in a high-growth industry faced with a shortage of skilled workers.

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.
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.
Large Human Resource: India enrolls around 30 million students in high schools & pre-graduate courses every year, 95% of which opts for employment in the IT industry. This means that the country would make available approximately 17 million people to the IT industry by 2008.

Language

The largest English-speaking population after the USA.

Cost

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. 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.

Regulatory Enablers

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. Single window clearance for all regulatory compliance issues.

Infrastructure Enablers

Basic, Cellular, Paging and Internet Services privatized. Domestic leased circuit tariff reduced by 80% in last 1 year. International Internet Gateway privatized-likely reduction in tariff.

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 going to be back office operations, medical transcriptions, insurance claims processing, customer interaction centers and content development. Current trends suggest that the country is well on course for achieving the above target.

Benefits of basing a client service center in Kolkata, West Bengal, INDIA

The city of Kolkata has a history of more than 300 years when it was the capital and the primary business hub of the erstwhile British during the colonial era. Today, it is one of the busiest metropolis of the country, houses India’s largest population of English speaking graduates and is considered to be the country’s intellectual capital.

- High-end technology infrastructure
- Very low administrative expenses
- Stable social and legislative structure
- Only Indian metro city with a very low cost of living, hence ensuring cost effective operations.
- Large population of English speaking technical & non-technical graduate manpower. Besides, it also houses a huge mass of professionals with global IT exposure.