Monday, April 7, 2008

Indian Outsourcing industry is adjusting: Feb. 2008

+ Indian industry is adjusting to new 4 strands clearly visible
+ Growth in domestic demand that has increased to USD 5.4B. Companies like Bharti Airtel, Dish TV, Barclays and SBI has outsourced their Business process and call center operations locally
+ Second the global delivery model perfected by Indian giants for software delivery has resulted in shift of operations from onsite to offshore is being challenged. Offshore revenue has increased whereas onshore revenue has dropped. Infosys, TCS and Satyam have development center in Hungry, Romania, China and Canada. While Wipro plans to open a near shore center in Atlanta in US.
+Thirdly response to shortage of skilled manpower and rising wages. Some companies are taking their own steps to develop a talent of pool through initiatives like NIIT and participating in school curriculum. Further also shifting operations in countries where labour is cheaper like Infosys setting up Infosys setting up development center in China, TCS setting up in Mexico and Zensar in Poland. Many BPO’s have set up call center in Philippines.
+ Fourthly Infosys and TCS have started consulting practices and also undertaken technology research relevant to business to effectively compete with IBM; EDS and Accenture.
Infosys, TCS, Wipro have focused on US and European market whereas foreign multinationals like IBM; EDS have captured 55% of the Indian market share. Bharti and Vodaphone has outsourced their operations to IBM for more than USD 2.5B.

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