There is no doubt that India is the outsourcing capital of the world. With
over 1500 outsourcing firms in India providing small, medium and large scale
outsourcing functions to companies abroad, India is in an enviable global
leadership position when it comes to outsourcing.
After the Satyam debacle and the recessionary trend in the global economy, the
outsourcing industry did get a jolt but was quick to recuperate. Most Chinese
firms took this opportunity to malign the Indian outsourcing industry and woo
away a few of the Satyam clients.
Well, it is an opportunity that the Chinese outsourcers did not want to lose and
took full use of; but that definitely does not in any way undermine India's
position as the numero uno service outsourcing nation.
Let us see, what are the paradigms that helps India firmly retain its position
as the outsourcing "King of the world" defeating China and other nations.
1. Language benefit - The 200 hundred years of British rule and the
Indian obsession with the English language has proved to be a boon in disguise
for the outsourcing industry.
In India, primary kids begin learning the nuances of the English language and
are compulsorily taught English right up to graduation.
English is the widest spoken language in India and all business transaction take
place in English. In the Asian scenario India is the most English friendly
language in the region.
Whereas, China and other Asian countries like Thailand, Japan and Korea stress
on their national language for all communication, making English a secondary
language; India has a huge advantage in having a vast talent pool of fluent
English-speaking young people.
2. Education and skill set - With over 2500 hundred Universities as
compared to only 500 in China, India is far ahead in education and skilled
manpower; giving its competitor's a real tough challenge.
3. Quality edge - The Indian work force is highly reliable and can
deliver world-class quality while ensuring rapid delivery due to the
international quality and security standards that are adhered to in the
call center outsourcing business.
4. Governmental support - The IT boom and the staggering revenue
generation from this sector has made the Indian government very supportive to
the needs of the industry. The government gives a special thrust on the development
of this sector thus helping the outsourcers put their best foot forward in
service providing.
- Government has given high-speed international private internet circuits to the
big outsourcers thus ensuring better delivery standards.
- It has granted Income tax and customs exemptions for export of IT enabled
services and software.
- Government has enhanced its investment in IT infrastructure
- It has given consent for private internet gateways
- The government has approved several key foreign investment proposals in the IT
and IT enabled services to allow for tremendous growth in this sector.
And most of all India is reaping the benefits of the "First mover advantage"!
Way back in 1999 during the Y2K scare, it was Indian firms that began the
trickle of outsourcing which has now become a torrent and has left all its
competitors far, far behind.