Future trends of outsourcing

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Future trends of outsourcing

  1. 1. Future Trends in Outsourcing Indian Perspective for Vision 2020 Prepared and Presented by Manav Kant GuptaWednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 1
  2. 2. OutsourcingWednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 2
  3. 3. Why India is First Choice?Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 3
  4. 4. (US $bn) 2001 2006 2008 Total Business Process 127 234 310 Outsourcing Market Percentage Offshored to India 5% 15% 20% Offshored BPO Market 6.4 35.1 62.0 India ITES Exports 1.5 12 21Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 4
  5. 5. Outsourcing Predictions• McKinsey Survey: 83 percent of Fortune 500 will have facilities in India by end 2005• Wall Street Journal: 500,000 financial sector jobs to India in 2-3 years• Forrester Research: some 3 million jobs to migrate overseas, the lion’s share to India, by 2015• McKinsey believes Indias revenues from the IT industry will reach $87 Billion by 2008.Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 5
  6. 6. Call Centers  There are about 200 call centers in India with a turnover of $2 billion and a workforce of 150,000 between age group of [16-25]  300 of the Fortune 500 are now present in India compared to 33 in China.  The domestic BPO sector is projected to increase to $4 billion in 2004 and reach $65 billion by 2010. (McKinsey & Co.).  BY 2020 this work force will not be utilised by Call centers because they will pass the necessary ageWednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 6
  7. 7. Current & Future Competitors of India in Outsourcing • China • Philippines • Malaysia • Thailand • Singapore • Israel • South AfricaWednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 7
  8. 8. Trend of CNX IT NSE IndiaWednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 8
  9. 9. Major Companies Contribution to CNX IT• Tata Consultancy Services Ltd. - 5.89 %• Infosys Technologies Ltd. - 5.15 %• Wipro Ltd. - 5.01 %• They all are providing services to other countries » Software Solutions » ConsultancyWednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 9
  10. 10. 2005 stats of Major IT Comp.Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 10
  11. 11. Threats to India • More MNC entrants • New Competitors in Outsourcing • Price going down because of desperate players • USA IT Industry decline • US job wash • Indian Economy is becoming dependent on US business strategies.Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 11
  12. 12. Past Trends of GDP - IndiaWednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 12
  13. 13. Current GDP & Stature of India• GDP $576 Billion. (GDP rate 8%)• Worlds 4th largest economy.• 2nd largest pool of scientists and engineers in the World.Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 13
  14. 14. Vision 2020• Indias GDP will reach $ 1 trillion by 2011 $ 2 trillion by 2020 …becoming the 3rd largest economy after USA and China.Economic growth, Political stability and Poverty reduction.Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 14
  15. 15. Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 15
  16. 16. To achieve vision 2020• Setup Research Centers• Develop product for masses in India and World• Focus on the processes within the Country to grow• Promote Ingenious Software usage in India• Alliance between Indian IT Companies over Ingenious software projects• Increase number of IIT’s “IIT = Harvard + MIT + Princeton” , says CBS ‘60 Minutes’. CBS highly-regarded ‘60 Minutes’, the most widely watched news programme in the US, told its audience of more than 10 Million viewers that “IIT may be the most important university youve never heard of."Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 16
  17. 17. Conclusion• Outsourcing Trends to continue with current growing trends• Exports of IT related services from India are expected to increase from US$7.9bn in 2001-02 to US$57bn by 2008-09 – NASSCOM & McKinsey Report• To attain self sustainability, India should have its own Ingenious Products.• People need to change their thinking.Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 17
  18. 18. Wednesday, March 08, 2006 Conference Theme : “Future Trends in IT” 18

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