Offshoring India

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Indian Off-shoring Advantage for Eternity

Transcript of Offshoring India

Indian Off-shoring Advantage for Eternity

MYTHS & FACTS

• Off shoring to India began after the dotcom bust and downturn.

• West will off-shore to many places, and it does not really matter where.

• India is home to a low-end software coding industry & Call Centers.

WHY NOT CHINA???

• Share Similar demographic factors.

• I.P. Piracy

• English Speaking

• Bureaucratic & Red Tape

• Engineering Graduates

Beyond IT

• Skill-Intensive Industries .

• Bioinformatics

• Photonics

• Microelectronics and Nanotechnology.

NASSCOM Statistics

2005 2007• CAGR 42% $543 MILLION

(software business)

• CAGR 43% $156 million

$76 million (software product)

2008 2015

• BI Software (global demand) $7.8 bn $15bn

• SEARCH ENGINE(mrkt software) $25.2 Bn $60.4 bn

• ERM (software product) $ 33.2bn $59.8 bn

FUTURE PERFECT

Bright future

2008 2015• Softwares

$294 bn $ 537 bn

• ERM software product

$33.2 bn $ 59.8 bn

Contd

• Telecom software market to reach USD 33.1 billion by the year 2015

• Retail-specific software to grow from USD 3 billion in 2008 to USD 5.2 billion in 2015

• Mobile applications to grow from USD 2.4 billion in 2008 to USD 11.2 billion in 2015

Product Life Cycle

Offshoring Makes Business Sense

• Essential for the PLC to be maintained• Newer markets can be captured• Cost cutting is the way to means• Promotes global presence• Return is the Mantra and not Cost

Self Reliant India?

• Regional disparities

• Very big region under developed

• Infrastructural shortcomings

• Rural Development

• Labor intensive Agriculture

• Literate still unemployable

Efforts for Eternity

• Better education system – synergy between industry and academia.

• More vocational training for specific functional and domain expertise.

• Continued labour cycle

• Increase the capacity of services rendered

Efforts to synergise.

• Organised trade development initiative.

• Software segment – industry level program.

• Strengthening the capital ecosystem.

• New offshoring hubs

…………….don’t get carried away…..

Future Markets

• France

• Japan

• Germany

Offshoring Is Here to Stay

• Economies of scale.

• Elimination of non – revenue generating activities.

• Greater business flexibility

• Talent pool.

• Win – win situation.

Thank You