Is Indian Offshoring

Advantage For Eternity

Maveri
 Offshoring
Offshoring describes the relocation by a company of a
business process from one country to another.

Offshoring refers to taking advantage of lower-cost labor in

another country.
 Why Outsource Your IT?
Each firm has their own internal
motivations
for considering an Outsourcing
Strategy
• “IT is not my company’s core
competency, we
need to focus on what we do”
• “My company is overspending to
maintain its
IT Resources”
• “We need to be more agile in our IT
Initiatives
Wh
y?
q30-50% cost qAccess to
reduction for off talents
shored process
qThe Advent of
qFaster and Globalization
Better
Communication qHigh skilled
Labour

y
lit
Co
qLow Attrition

a
Qu
st
rate qEnglish
India’s Value Advantage
Proposition
Fl
ex

ity
ibi

iv
qIT Optimization li qEase of ramp-
t
uc ty
up & down to
od

qFaster reflect business

Pr

turnaround time volumes

q24 ×7 service qFlexible,

results-driven
qLearning effect engagement
/specialization models
qReduction of
6 9
During NIGHT During DAY
making and time
taking calls from processing of
the clients and the data.
it’s customer

24 Hours
Source : GSLI Index
(2007)
Source: Census Survey, 17 9
2005
 Edge over
age
China- India-2008
Male 2008 Female Male Female

Population in Population in
(millions) (millions)

19 11
Source: US Census Bureau, International Data Base,
 India continues to rank as the preferred destination…
Likely to benefit disproportionately from Offshoring Drive
India - the Preferred Offshore Destination
Indi
(Number, Quality)

a
2004 2008
Sophistication

Philippin
Vendor

es

China
CIS

Mexic
o

People Sophistication
(Number, Cost, Language
Skills)

Irelan Isra
d el
Singapo
re

Mexic
C
ost

o
Hunga
ry Malays
Philippinia India
es Indi Low Cost
Chin a High
a Quality
Russi
a Developme

Source: Nasscom
Quality of Supply
(Resource Availability, CMM Level,
Cultural Fit) Source: McKinsey-NASSCOM study
What it is in India?
Export of offshore services

Source: NASSCOM, Strategic

Review 2005
Wh
y?

Chosen for
INNOVATION OF
OFFSHORING
 THE NEW 3
DIMENSIONS
OF OUTSOURCING

LP
O
EP
 37 20
Source: Evalueserve
KPO Trend

38 21
Source: Evalueserve
Growth engines..

• The labour factor

• Time factor

• The large talent pool

 Talent pool
• 19 million students are enrolled in
high schools
• 10 million students in pre-graduate
degree courses
• 2.3 million graduates (4,41,000
engineers)
• 0.3 million post-graduates
27
33
Th e
Significant cost
advantage
qLabor

qCapital

q Labor management

''Offshore outsourcing was triggered by the

intention to cut costs, but now it's not just driven
by cost factors,'' Karnik,President, NASSCOM
Source: Giga Research,
23 30
a wholly owned subsidiary of Forrester Research Inc
 Relationships with Software
What is a Software Technology Park?
• Subsidized real estate
• Tax Breaks
• Affordable housing
• Legal and Accounting services
• Close proximity to fellow IT Firms
• Assistance with funding and attracting FDI
• Close proximity to technical schools and
universities
The india have paid close attention to the
success of U.S.
 Highlights of STPs
• 100% foreign equity is permitted.
• Import duty exempted.
• Permitted to the domestic market.
• Tax benefits.
RURAL INDIA
 Conclusi
ons
•We are only at the start, and not at a
mature state, of the offshore
industry evolution.

•The pace, breadth and depth of

offshoring business is rising.

•Global demand will exceed near-term

suitable talent supply in every
country.