Iso 9000 historyThe outsourcing history of India is one of phenomenal growth in a very short span of time. Theidea of outs...
Looking at the success of Indias IT/software industry, the central government identifiedITES/BPO as a key contributor to e...
are migrating to the ISO 9000:2000 standards and companies on the CMM framework arerealigning themselves to the CMMI model...
Content development: The content development services segment which includes engineeringand design services, digitization ...
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Iso 9000 history

  1. 1. Iso 9000 historyThe outsourcing history of India is one of phenomenal growth in a very short span of time. Theidea of outsourcing has its roots in the competitive advantage theory propagated by Adam Smithin his book The Wealth of Nations which was published in 1776. Over the years, the meaning ofthe term outsourcing has undergone a sea-change. What started off as the shifting ofmanufacturing to countries providing cheap labour during the Industrial Revolution, has taken ona new connotation in todays scenario. In a world where IT has become the backbone ofbusinesses worldwide, outsourcing is the process through which one company hands over part ofits work to another company, making it responsible for the design and implementation of thebusiness process under strict guidelines regarding requirements and specifications from theoutsourcing company. This process is beneficial to both the outsourcing company and the serviceprovider, as enables the outsourcer to reduce costs and increase quality in non core areas ofbusiness and utilize his expertise and competencies to the maximum. And now we can see thebenefit to the service companies in India as they mature, prosper and build core capabilitiesbeyond what would generally be possible by the outsourcing company.Since the onset of globalization in India during the early 1990s, successive Indian governmentshave pursued programs of economic reform committed to liberalization and privatization. Till1994, the Indian telecom sector was under direct governmental control and the state owned unitsenjoyed a monopoly in the market. In 1994, the government announced a policy under which thesector was liberalized and private participation was encouraged. The New Telecom Policy of1999 brought in further changes with the introduction of IP telephony and ended the statemonopoly on international calling facilities. This brought about a drastic reduction and thisheralded the golden era for the ITES/BPO industry and ushered in a slew of inbound/outboundcall centres and data processing centres. Although the IT industry in India has existed since theearly 1980s, it was the early and mid 1990s that saw the emergence of outsourcing. One of thefirst outsourced services was medical transcription, but outsourcing of business processes likedata processing, billing, and customer support began towards the end of the 1990s when MNCsestablished wholly owned subsidiaries which catered to the process off-shoring requirements oftheir parent companies. Some of the earliest players in the Indian market were American Express,GE Capital and British Airways.The ITES or BPO industry is a young and nascent sector in India and has been in existence for alittle more than five years. Despite its recent arrival on the Indian scene, the industry has grownphenomenally and has now become a very important part of the export-oriented IT software andservices environment. It initially began as an activity confined to multinational companies, buttoday it has developed into a broad based business platform backed by leading Indian IT softwareand services organizations and other third party service providers. The ITES/BPO marketexpanded its base with the entry of Indian IT companies and the ITES market of the present dayis characterized by the existence of these IT giants who are able to leverage their broad skill-setsand global clientele to offer a wide spectrum of services. The spectrum of services offered byIndian companies has evolved substantially from its humble beginnings. Today, Indiancompanies are offering a variety of outsourced services ranging from customer care,transcription, billing services and database marketing, to Web sales/marketing, accounting, taxprocessing, transaction document management, telesales/telemarketing, HR hiring and biotechresearch.
  2. 2. Looking at the success of Indias IT/software industry, the central government identifiedITES/BPO as a key contributor to economic growth prioritized the attraction of FDI in thissegment by establishing Software Technology Parks and Export Enterprise Zones. Benefits liketax-holidays generally enjoyed by the software industry were also made available to theITES/BPO sector. The National Telecom Policy (NTP) introduced in 1999 and the deregulationof the telecom industry opened up national, long distance, and international connectivity tocompetition. The governments of various states also provide assistance to companies to overcomethe recruitment, retention, and training challenges in order to attract investments to their region.The National Association of Software and Service Companies (NASSCOM) has createdplatforms for the dissemination of knowledge and research in the industry through its survey andconferences. NASSCOM acts as an advisor, consultant and coordinating body for the ITES/BPOindustry and liaisons between the central and state government committees and the industry. Theardent advocacy of the ITES/BPO industry has led to the inclusion of call centers in the BusinessAuxiliary Services segment, thereby ensuring exemption from service tax under the Finance Billof 2003.These measures have led to a steady inflow of investments by large foreign companies such asReuters, for establishing large captive ITES/BPO facilities across India. Moreover, the existingITES/BPO operations of major multi-nationals are also being ramped up to cater to the everincreasing demand for better and speedier service. Almost all of Indias top ITES/BPO giantshave announced some form of expansion and are in the process of hiring manpower to fill theadditional seats. Indias competitive advantage lies in its ability to provide huge cost savingsthereby enabling productivity gains and this has given India an edge in the global ITES/BPOmarketplace. NASSCOM studies pinpoint the following factors as the major reasons behindIndias success in this industry (Source: Abundant, skilled, English-speaking manpower, which is being harnessed even by ITES hubssuch as Singapore and Ireland.o Improving telecom and other infrastructure which is at par with global standards.o Strong quality orientation among players and their focus on measuring and monitoring qualitytargets.o Fast turnaround times and the ability to offer 24x7 services based on the countrys uniquegeographic location that allows for leveraging time zone differences.o Proactive and positive policy environment which encourages ITES/BPO investments andsimplifies rules and procedures.o A friendly tax structure, which places the ITES/BPO industry on par with IT servicescompanies.Outsourcing to India offers significant improvements in quality and productivity for overseascompanies on crucial parameters such as number of correct transactions/number of totaltransactions; total satisfaction factor; number of transactions/hour and average speed of answer.Surveys by NASSCOM also revealed that Indian companies are better focussed on maintainingquality and performance standards. Indian ITES/BPO companies are on an ascending curve as faras the quality standards are concerned. Organizations that have achieved ISO 9000 certification
  3. 3. are migrating to the ISO 9000:2000 standards and companies on the CMM framework arerealigning themselves to the CMMI model. Apart from investing in upgrading their CRM andERP initiatives, many Indian ITES companies are beginning to acknowledge the COPCcertifications for quality and are working towards achieving COPC licences.Despite being a fledgling in the global ITES/BPO industry, the Indian ITES industry recorded agrowth rate in excess of 50% in 2002-03. Industry experts consider this a positive indication ofthe times to come and a look at the ranking and the revenue and headcount statistics show thepotential of the industry.The global ITES/BPO industry was valued at around US$ 773 billionduring 2002 and according to estimates by the International Data Corporation worldwide, it isexpected to grow at a Compounded Annual Growth Rate (CAGR) of 9% during the period2002-2006. NASSCOM lists the major indicators of the high growth potential of the ITES/BPOindustry in India as the following (Source During 2003-04, the ITES-BPO segment is estimated to have achieved a 54 percent growth inrevenues as compared to the previous year.o ITES exports accounted for US$ 3.6 billion in revenues, up from US$ 2.5 billion in 2002-03.o The ITES-BPO segment also proved to be a major opportunity for job seekers, creatingemployment for around 74,400 additional personnel in India during 2003-04.o The number of Indians working for this sector jumped to 245,500 by March, 2004.o By the year 2008, the segment is expected to employ over 1.1 million Indians, according tostudies conducted by NASSCOM and leading business Intelligence Company, McKinsey & Co.Market research shows that in terms of job creation, the ITES-BPO industry is growing at over 50percent.Surveys of the Indian ITES/BPO industry in 2004 expected it to follow the trends given below:Customer care: Customer care and support services will continue to lead in terms of revenuegeneration, with a turnover of around US$ 1200 million in 2003-04., up from last years turnoverof US$810 million.Finance: With the financial services segment moving into value added domains like insuranceclaims processing, financial management services and equity research, this segment is expectedto clock the highest growth, with estimates of US$820 million in revenue in 2003-04, up fromUS$510 million in 2002-03.HR services: HR services are also expected to grow and revenues are expected to touch US$70million during 2003-04, thereby providing latent opportunities to the industrys dominant players.Payment services: This segment has also been identified as a high growth area within theindustry, and is expected to generate revenues of around US$430 million for 2003-04, up fromUS$210 million in 2002-03.Administration: Revenues from the administration services segment are expected to increasefrom US$ 310 million in 2002-03, to US$540 million during 2003-04.
  4. 4. Content development: The content development services segment which includes engineeringand design services, digitization (GIS), animation, network management and biotech research, isexpected clock a turnover of around US$520 million in 2003-04.The availability of technically trained and skilled manpower in India is making companies acrossthe world look at the country as a profitable base to shift their high-end support services.Companies like COLT Technology Services are considering outsourcing their technical back-office support work to India. Other areas are high-end network engineering/management support.Another field which is showing immense potential is that of digital content creation andanimation. Animation studios like Walt Disney, MGM and Warner Brothers are alreadyoutsourcing low-end work like clean-ups, tweening and modelling to India. The availability ofskilled and trained manpower and Indias ability to keep in step with the latest technologicaladvances in the industry is prompting foreign studios to consider India as a base to shift otherhigh-end animation work like storyboarding and developing original content for animated filmsad TV series. Tele-radiology is the next segment that holds great promise, mainly due to the timezone differences and the availability of highly skilled radiologists and companies likeTeleradiology Solutions have been offering their services to US and South-East Asian hospitalsfor the past two years. Engineering services like CAD/CAM 2D, 3D and CAE modelling anddesign automation are the latest additions to the ever increasing list of processes being outsourcedto India.If you want to download over free 50 ebook for iso 9001 standard, you can visit:http://iso9001ebooks.infoBest regards