Is India’s Offshoring Advantage for Eternity? – Opposition Ricky Ghadiali [email_address]

Is India’s Offshoring Advantage for Eternity? – Opposition

What made India an Offshoring Hub? Large investment in technical institutions Government regulation of private sector Affordable Infrastructure Technology upgradation English-Speaking Manpower Cheap Skilled Software Engineers

Large investment in technical institutions

Government regulation of private sector

Affordable Infrastructure

Technology upgradation

English-Speaking Manpower

Cheap Skilled Software Engineers

Loosing Cost Advantage Manpower Demand-Supply Gap Rising Salaries Loosing Cost Advantage

Manpower Demand-Supply Gap

Rising Salaries

Loosing Cost Advantage

Internal Problems of India Problem of Talent and Attrition

Problem of Talent and Attrition

Geopolitical Instability Source: www.nationalinterest.in

Other Factors Power Shortage in India Political Interference & Bureaucracy

Power Shortage in India

Political Interference & Bureaucracy

Diversify Offshoring Keeping prices under control Risk Mitigation Getting Best Talent

Keeping prices under control

Risk Mitigation

Getting Best Talent

Evolution of Offshore Nations: ITO

Evolution of Offshore Nations: BPO

India vs. China Source: Nasscom 2007 Country Average Entry Level Programmer Salary US$ (2 yrs exp) Geopolitical Risk English Proficiency India $5k - $10k Moderate Very Good China $5k - $10k Moderate Poor

Tracing China’s Evolution 1000 words English Dictionary National English Speech Contest Good at reading and writing Improving listening and speaking English Programme “Ten-hundred-thousand” Develop Ten cities Attract Hundred MNC’s Develop Thousand Enterprises

1000 words English Dictionary

National English Speech Contest

Good at reading and writing

Improving listening and speaking English

Programme “Ten-hundred-thousand”

Develop Ten cities

Attract Hundred MNC’s

Develop Thousand Enterprises

US and Europe – Cutting Offshoring To boost their own economy Re-generating employment in own country Hatred against offshoring Obama factor

To boost their own economy

Re-generating employment in own country

Hatred against offshoring

Obama factor

Wall Street’s Meltdown: Aftereffects on Offshoring Bankrupt US financial institutions Mergers Falling Stock Markets An overall slow spending mode

Bankrupt US financial institutions

Mergers

Falling Stock Markets

An overall slow spending mode