India's Offshore Outsourcing Industry Reaches New Heights

India has remained the undisputed leader in offshore outsourcing for over a decade thanks to its extensive talent pool, cheaper labor costs and conducive government policy. The Indian government has been encouraging the growth and development of IT offshore outsourcing and it has even organized its primary, secondary, higher secondary and professional education systems accordingly to suit the need of outsourcing. Specific emphasis is being given to math, science and information technology to strengthen the talented pool further and make the educated youth employable.

The combined endeavor of the Indian government and the Indian IT industry has paid off and catapulted the Indian offshore outsourcing industry literally to a brand-new height. With the consistent and phenomenal performance of the Indian IT industry, which has only become better and better with the passage of each year, India's offshore outsourcing industry has flipped the global outsourcing market inside out. It's no wonder then that the Indian IT hub Bangalore is hailed globally as the world's Silicon Valley. The seamless quality delivered by the offshore IT industry has earned both trust and a name to be reckoned with. As a result, Fortune's top corporations consider India's offshore industry more seriously than its counterparts, i.e Ireland and Philippines.

The upsurge of the offshore outsourcing has opened a floodgate of job opportunities for many young talents in India. Today, India is witnessing unprecedented job generation in both domestic as well as foreign markets. Unlike past scenarios, when a better part of educated youth remained unemployed, today the young talents are geared up to embrace excellent and promising job opportunities which not only offer financial independence but also great career prospects. Each year, the Indian education system churns out a good number of educated professionals who can potentially contribute to the global outsourcing industry on a significant level. It has no doubt has been responsible for the boom of various offshore outsourcing services in India.

Primarily, India offers three major outsourcing services to its clients: finance, human resources and customer service. Unsurprisingly, according to a 2006-07 fiscal report, the outsourcing sector has contributed a whopping 90% to the national revenue. Having made a magnificent market and set new benchmarks, India's offshore outsourcing industry is now zeroing in on the world pharmaceutical industry, which is estimated to be around $17 billion.

Moreover, the projected growth prospect for both pharma and legal outsourcing looks extremely encouraging with an estimated surge of $50 billion and $6 billion respectively in the next five years. While the overseas demand for outsourcing to India has gone up by 30%, the Indian job industry is thriving on employment opportunities. Despite all of this, India is not showing any sign of letting up or slowing down. It is constantly trying to generate more offshore clients. As India gets more and more organized, and the number of IT companies burgeon, the presence of the Indian offshore outsourcing industry will be much more dominating.

Comments

[User 107684]

nice approx. pal, do you think only IT doen't make an economy powerful? albiet it's benefit to the techies,but imagine how manufacturing uplifts poor unskilled people and helps a contry prosper.. look at China. World's manufacturing hub.and there is better IT automation in China..however, they are still behind India in software exports. But that doesn't stop the dragon's GDP growth rate. Consider Japan. How much software do they export? Still being the world's 2nd largest economy with US $4.5 trillion dollar. But still anyway, it's better to have a frontline in something than nothing.and the reason to have IT is not to get carried away by the wave... India needs to compete in manufacturing and export...electronics and consumer goods.

IT can lift 10% of people out of poverty.. while manufacturing + services can lift 90% out of the same within the equal timespan. Vietnam reduced its poverty rate fastest and now only 11% are poor compared to 35% before?

IT is important as well as hardware, and Indian policy makers are slow in implementing both...ie.SEZ reforms .

[T.M.SARAVANAI]

I agree your statement.you are perfectly analizing the problem of India. IAM A RETIRED TEACHER OF MATHS IN HIGH SCHOOL

[T.M.SARAVANAI]

i HAVE ALREADY GIVEN MY COMMENTS

[NS]

India has done quite well in BPO & IT outsourcing and now comes the next challenge / opportunity - KPO & Engineering Services Outsourcing…will India do as well here as well? Given its past successes, India does have a good chance at shining at this too, so let’s hope for the best!

NS @ www.engineeringservice...

[NS]

India has done quite well in BPO & IT outsourcing and now comes the next challenge / opportunity - KPO & Engineering Services Outsourcing…will India do as well here as well? Given its past successes, India does have a good chance at shining at this too, so let’s hope for the best!

NS @ www.engineeringservice...