It is astounding to see the growth of the Indian outsourcing sector in spite of the many challenges it faces. In this paper an attempt has been made to identify these challenges along with very brief recommendations.
Learning and Skilling - A Future Work PerspectiveIET India
Businesses seem to be changing at a relentless pace with the advent of AI and big data. Organisations exist in a VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) state rather than anticipating known risks. Change is the new normal and here to stay, we need to embrace it.
Upskilling and staying relevant are much needed during these trying times and staying calm and focused can help put things in perspective.
Ability to adapt is the most important skill at a time when companies are undergoing digital transformation and this skill takes precedence over technical knowledge, communication skills or problem solving – all of which are touted as important 21st century skills. But how do individuals as well as organisations build this crucial skill?
View the report to know how to bridge the skill gap
From a million graduates every year, only 3% is appropriately employable
to skilfully accomplish productive jobs. About half of the country’s people
being young people; this presents a remarkable opportunity that can be
utilised for the social, economic and sustainable growth of nation.
Although, India boasts of having approximately 3.4 million skilled
manpower, but the country will need around 500 million skilled workers,
according to a report by ILO (Indian Labour Organisation) by 2022. This
proposition presents as an imperative national priority to be addressed by
addressing the issue of skill gap. Skill building is very important for making
the aim of “Make in India”, a campaign announced by Present Prime
Minister, Sh. Narendra Modi, a real success. This paper seeks to address the
issue of skill gap and strives to present some key suggestions for skill
building.
Keywords:
From a million graduates every year, only 3% is appropriately employable to skilfully accomplish productive jobs. About half of the country’s people being young people; this presents a remarkable opportunity that can be utilised for the social, economic and sustainable growth of nation. Although, India boasts of having approximately 3.4 million skilled manpower, but the country will need around 500 million skilled workers, according to a report by ILO (Indian Labour Organisation) by 2022. This proposition presents as an imperative national priority to be addressed by addressing the issue of skill gap. Skill building is very important for making the aim of “Make in India”, a campaign announced by Present Prime Minister, Sh. Narendra Modi, a real success. This paper seeks to address the issue of skill gap and strives to present some key suggestions for skill building. Keywords: From a million graduates every year, only 3% is appropriately employable to skilfully accomplish productive jobs. About half of the country’s people being young people; this presents a remarkable opportunity that can be utilised for the social, economic and sustainable growth of nation. Although, India boasts of having approximately 3.4 million skilled manpower, but the country will need around 500 million skilled workers, according to a report by ILO (Indian Labour Organisation) by 2022. This proposition presents as an imperative national priority to be addressed by addressing the issue of skill gap. Skill building is very important for making the aim of “Make in India”, a campaign announced by Present Prime Minister, Sh. Narendra Modi, a real success. This paper seeks to address the issue of skill gap and strives to present some key suggestions for skill building.
A proposal on establishing Research University in India: 2008Amit Sheth
Over more than a decade, there have been several proposals to establish a research university, starting with postgraduate (MS/PhD) focus. Appendix A in this is one specific proposal presented to Mr. Narendra Modi in 2008. If one were to start a research university in 2020, perhaps AI and health would be good initial areas. For a related talk given to Mr. Narendra Modi, see: https://www.slideshare.net/apsheth/why-gujarat-needs-much-better-higher-education-research-to-succeed-in-knowledge-economy-what-we-can-do-about-it
Problems and Opportunities of Software Industry in KashmirJunaid Rafiqi
A project report on "Problems and Opportunities of Software Industry in Kashmir" with the objectives to find the current issues and limitations faced by the Software Industry of Kashmir along with the future opportunities of the same.
Learning and Skilling - A Future Work PerspectiveIET India
Businesses seem to be changing at a relentless pace with the advent of AI and big data. Organisations exist in a VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) state rather than anticipating known risks. Change is the new normal and here to stay, we need to embrace it.
Upskilling and staying relevant are much needed during these trying times and staying calm and focused can help put things in perspective.
Ability to adapt is the most important skill at a time when companies are undergoing digital transformation and this skill takes precedence over technical knowledge, communication skills or problem solving – all of which are touted as important 21st century skills. But how do individuals as well as organisations build this crucial skill?
View the report to know how to bridge the skill gap
From a million graduates every year, only 3% is appropriately employable
to skilfully accomplish productive jobs. About half of the country’s people
being young people; this presents a remarkable opportunity that can be
utilised for the social, economic and sustainable growth of nation.
Although, India boasts of having approximately 3.4 million skilled
manpower, but the country will need around 500 million skilled workers,
according to a report by ILO (Indian Labour Organisation) by 2022. This
proposition presents as an imperative national priority to be addressed by
addressing the issue of skill gap. Skill building is very important for making
the aim of “Make in India”, a campaign announced by Present Prime
Minister, Sh. Narendra Modi, a real success. This paper seeks to address the
issue of skill gap and strives to present some key suggestions for skill
building.
Keywords:
From a million graduates every year, only 3% is appropriately employable to skilfully accomplish productive jobs. About half of the country’s people being young people; this presents a remarkable opportunity that can be utilised for the social, economic and sustainable growth of nation. Although, India boasts of having approximately 3.4 million skilled manpower, but the country will need around 500 million skilled workers, according to a report by ILO (Indian Labour Organisation) by 2022. This proposition presents as an imperative national priority to be addressed by addressing the issue of skill gap. Skill building is very important for making the aim of “Make in India”, a campaign announced by Present Prime Minister, Sh. Narendra Modi, a real success. This paper seeks to address the issue of skill gap and strives to present some key suggestions for skill building. Keywords: From a million graduates every year, only 3% is appropriately employable to skilfully accomplish productive jobs. About half of the country’s people being young people; this presents a remarkable opportunity that can be utilised for the social, economic and sustainable growth of nation. Although, India boasts of having approximately 3.4 million skilled manpower, but the country will need around 500 million skilled workers, according to a report by ILO (Indian Labour Organisation) by 2022. This proposition presents as an imperative national priority to be addressed by addressing the issue of skill gap. Skill building is very important for making the aim of “Make in India”, a campaign announced by Present Prime Minister, Sh. Narendra Modi, a real success. This paper seeks to address the issue of skill gap and strives to present some key suggestions for skill building.
A proposal on establishing Research University in India: 2008Amit Sheth
Over more than a decade, there have been several proposals to establish a research university, starting with postgraduate (MS/PhD) focus. Appendix A in this is one specific proposal presented to Mr. Narendra Modi in 2008. If one were to start a research university in 2020, perhaps AI and health would be good initial areas. For a related talk given to Mr. Narendra Modi, see: https://www.slideshare.net/apsheth/why-gujarat-needs-much-better-higher-education-research-to-succeed-in-knowledge-economy-what-we-can-do-about-it
Problems and Opportunities of Software Industry in KashmirJunaid Rafiqi
A project report on "Problems and Opportunities of Software Industry in Kashmir" with the objectives to find the current issues and limitations faced by the Software Industry of Kashmir along with the future opportunities of the same.
Education sector's growth lies with its talentPeopleWorks IN
Macroeconomic trends perking the newsstands are usually ignored by many of us as a buzz of the newspapers. However, each one of us plays an important role in shaping the future of our economy. The educational sector is thus a lucrative sector. Streamline the talent of your educational enterprise with the magic wand of technology, ensuring smoother workflow. Ensure efficiency by micro organizing employee data, trigger productivity and growth of the educational enterprise. Shift the focus from the attrition mode towards the effective employee engagement mode!
Usher the advantage of the cloud with PeopleWorks and enjoy growth uninterrupted!
Management Education in India - September 2013Careers360
Issues that plague the business education scene in the
country include increase in number of seats, falling student
interests, rising fees and decelerating return on investments.
In short, management education is going through a crisis.
The paper, while enumerating the ills that adversly affect the
system (also based on our survey of 577 B-Schools) present an
overall picture and flags issues that the different stakeholders
of the system namely the B-Schools, the recruiters, the aspirants and the media must confront and address
Why india still has an edge in software development outsourcing in 2022, desp...ISHIR
India is known for its cost advantage and the largest pool of IT talent, If you consider outsourcing software development projects to India, you should not focus solely on India’s edge in software development.
Education sector's growth lies with its talentPeopleWorks IN
Macroeconomic trends perking the newsstands are usually ignored by many of us as a buzz of the newspapers. However, each one of us plays an important role in shaping the future of our economy. The educational sector is thus a lucrative sector. Streamline the talent of your educational enterprise with the magic wand of technology, ensuring smoother workflow. Ensure efficiency by micro organizing employee data, trigger productivity and growth of the educational enterprise. Shift the focus from the attrition mode towards the effective employee engagement mode!
Usher the advantage of the cloud with PeopleWorks and enjoy growth uninterrupted!
Management Education in India - September 2013Careers360
Issues that plague the business education scene in the
country include increase in number of seats, falling student
interests, rising fees and decelerating return on investments.
In short, management education is going through a crisis.
The paper, while enumerating the ills that adversly affect the
system (also based on our survey of 577 B-Schools) present an
overall picture and flags issues that the different stakeholders
of the system namely the B-Schools, the recruiters, the aspirants and the media must confront and address
Why india still has an edge in software development outsourcing in 2022, desp...ISHIR
India is known for its cost advantage and the largest pool of IT talent, If you consider outsourcing software development projects to India, you should not focus solely on India’s edge in software development.
Emerging Pathways to Growth in a Digitally Networked SocietyBrian Vellmure
The intersection of business fundamentals and our ever-growing digitally networked society is creating new possibilities and exposing new challenges daily. In this session, we zero in on emerging opportunities, placing a filter over the sound bites, noise, and hype, and discuss roadmaps that can truly amplify the future growth of your customer driven organization.
Hans Gaertner | Managing Partner at Radical Inclusion Inc. talked about "Major Concerns of Europeans in Associating with Indian Outsourcing Companies: Facts & Solutions" in the I/O event. See the full slide presentation here!
www.bridge-global.com/beam
Presentation 2012-10-12-13 Value Chain Management in Transportation System v1Nopporn Thepsithar
2012-10-12-13 เล่าประสบการเรื่อง Value Chain Management in Transportation System ให้นักศึกษาปริญญาโท CEO MBA ในวิชา MB 523 การจัดการห่วงโซ่คุณค่าและลูกค้าสัมพันธ์ มหาวิทยาลัยหอการค้า
German IT Outsourcing vs In-House Software Development Report 2012IT Sourcing Europe
The Report is based on the results of the 3d Annual IT outsourcing versus in-house software development research 2012. Number of survey participants – 764 German companies, of which 398 were IT / software development outsourcing companies and 366 – companies developing their IT / software solutions internally.
With a new governmental push towards building smart cities in India, there lies a huge technological and business opportunity. The report takes a detailed look at these.
Enabling Indian manufacturing MSMEs for global competitivenessIET India
The COVID-19 pandemic has been a watershed moment for businesses globally. While the scenario looks gloomy all around, there are significant local and global factors that may prove to be favourable for FDI in manufacturing, especially in the Micro, Small & Medium Enterprises (MSME) sector in India.
Post the lethal impact of COVID-19, more and more manufacturing companies are looking towards India as an investment destination and as a reliable alternative to other low-cost producer countries. This will benefit the growth of established firms/sectors, providing significant new prospects for Indian MSMEs to step up and move to the next level. However, it is important to be cognisant of the fact that in order to successfully grab these opportunities, there needs to be a serious rethink of existing business models.
This paper focuses on the opportunities available, scope for improvement, and solutions to varied challenges for the MSME sector in India.
Sample Bridging Local IT Consulting Market ReportBridging Local
The IT staffing market is expected to register a CAGR of 3.66% during the forecast period. The market's growth can be attributed to the increasing outsourcing of HR activities and the emergence of advanced technologies such as AI and IoT, which are expected to create robust demand for IT professionals across multiple end-user segments.
The recent outbreak of COVID-19 has a mix of implications for the IT staffing market, which has created a trend of permanent remote workers, which has caused a shift in the demand for various skill sets and has put multiple changes in the economy. Further, the growth in IT staffing can be attributed to the major role played by the IT services sector globally in helping various end-user industries and businesses across the country in their digital transformation and implementation of new and emerging technologies such as cloud, IoT, blockchain, and AI, post-pandemic.
The overall demand for tech talent remains strong — during the first quarter, U.S. employers posted 1.1 million tech jobs, an increase of 43% from previous year. The tech skills shortage is not new, but as an increasing number of non-tech companies continue to develop a technology infrastructure, demand for tech skills will continue to surge. Given the industry’s exponential advances, it is sparking growth in career and economic opportunities. As an aspiring tech professional, it pays to have knowledge on such areas as development tools, operating systems and programming languages. In US there are currently 5.2 million people employed in Tech sector and is projected to grow to 6 million by 2030.
Who we are?
Bridging Local is a market research and consulting firm helping startups and small business owners with key strategic insights into their target market. Team members of Bridging Local are seasoned consultants with 10+ years of research industry experience.
Our Industry reports are referred by investors, consultants, CEOs and other management professionals from various industries. Hundreds of start-ups have successfully established themselves using our guidance and industry insights. We conduct bespoke research for each client and our reports are tailored to the customer's needs covering a comprehensive review of the market.
Bridging Local`s team of consultant produce one of the most comprehensive market reports in the industry. Email us at contact@bridginglocal.com to arrange a zoom call with one of our consultants to discuss your project requirements.
Entrepreneurship in India and challengesArmaan Anand
Entrepreneurship in india context to global. challenges faced by Indian entrepreneur, major hindrance for an Indian entrepreneur, position of Indian entrepreneur, entrepreneur, entrepreneurship, why entrepreneurship in India, is India the spot for entrepreneur & entrepreneurship. future for Indian entrepreneurship & entrepreneur.
India continues to witness strong economic growth that is aided by major economic reforms and transformation that country has witnessed in the past years. It is a well-accepted fact that major long-term and sustainable economic growth happens on the back of robust human resources capabilities that requires a strong education system. The Indian Higher Education sector is expected to play an even more important role to meet the growth aspirations of the country. The Indian education sector with around 800 universities will play a pivotal role in providing workforce and developing our leaders of the future.
Can ICT Reduce Poverty and Unemployment and Elevate Development Integrating M...Dr. Amarjeet Singh
Information and Communication Technology
(ICT) can boost the performance of people and improve
overall human capital for the alleviation of poverty in a
society. Today, ICT is considered as one of the major
sources of driving force for the overall economic
development integrating with Micro, Small and Medium
Enterprises (MSMEs). The e-Commerce has a great role in
achieving business performance in the emerging Asian
countries. However, MSMEs are experiencing more
challenges that prevent them from further increasing their
business. The earlier studies question to which extent
MSMEs have benefited from these businesses. Therefore,
the main purpose of this study is to demonstrate the
importance of ICT in developing MSMEs based on the
success stories of emerging Asian countries. This study
based on subjective/argumentative i.e., idea generation in
Information Systems (IS). The findings of the study reveal
that the MSMEs utilizing ICT can alleviate poverty and
unemployment. It also reveals that MSMEs with ICT and
e-Commerce can enhance employment and new job
creation that can contribute to the overall economic
development. This study is expected to extend for further
an empirical investigation broadly on the same issue to
validate the research results.
2018 Cross-Border Data Flows: A Review of the Regulatory Enablers, Blockers, ...accacloud
Access to data represents a huge potential in terms of potential economic growth and social enablement opportunities. It is not surprising then, that many governments are setting forth ‘digital economy’ agendas, including policy and regulatory frameworks, to ensure they maximize participation and opportunity. However, such a cross-cutting agenda is not without its challenges. Regulations put in place to enable or protect one part of the economy can damage growth in neighboring sectors or industries, often unintentionally. This research report takes an investigative look at the way five Asian economies—India, Indonesia, Japan, the Philippines, and Vietnam—are aggressively transitioning to more digitally enabled economies.
For more information, visit http://www.asiacloudcomputing.org
Chapter 1: Current SMBs and IT scenario in INDIA
Chapter 2: IT adoption Scenario in India’s SMBs
Chapter 3: Usages of IT in SMBs
Chapter 4: Barriers to Technology Adoption and its Remedies
Similar to Challenges Of Indian Information Technology Outsourcing And Offshoring Service Sector (20)
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
Website Link :
https://skyeresidences.com/
https://skyeresidences.com/about-us/
https://skyeresidences.com/gallery/
https://skyeresidences.com/rooms/
https://skyeresidences.com/near-by-attractions/
https://skyeresidences.com/commute/
https://skyeresidences.com/contact/
https://skyeresidences.com/queen-suite-with-sofa-bed/
https://skyeresidences.com/queen-suite-with-sofa-bed-and-balcony/
https://skyeresidences.com/queen-suite-with-sofa-bed-accessible/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-king-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed-accessible/
#Skye Residences Etobicoke, #Skye Residences Near Toronto Airport, #Skye Residences Toronto, #Skye Hotel Toronto, #Skye Hotel Near Toronto Airport, #Hotel Near Toronto Airport, #Near Toronto Airport Accommodation, #Suites Near Toronto Airport, #Etobicoke Suites Near Airport, #Hotel Near Toronto Pearson International Airport, #Toronto Airport Suite Rentals, #Pearson Airport Hotel Suites
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Exploring Patterns of Connection with Social Dreaming
Challenges Of Indian Information Technology Outsourcing And Offshoring Service Sector
1. Global Sourcing
Outsourcing and
Offshoring, Economy,
Cost and Expertise Challenges in Indian
Information Technology
Increasing Attrition, Wages, Outsourcing and Offshoring
and Competition, Shortage Service Sector
of Talent
Tags: India, IT, Outsourcing
Lack of Innovation, new
Business Models,
Protectionism, Skilled Talent
By,
Uday Shankar AB
2. TABLE OF CONTENTS
1. Introduction ................................................................................................................................................. 2
2. Study............................................................................................................................................................ 2
3. Challenges in the Indian IT Outsourcing/Offshoring Sector ............................................................................. 2
3.1 People ..................................................................................................................................................... 3
3.1.1 Talent Quality/Shortage of Skilled People .......................................................................................... 3
3.1.2 Increasing Wages .............................................................................................................................. 3
3.1.3 High Attrition .................................................................................................................................... 4
2.2 Economy ................................................................................................................................................. 4
2.2.1 High Inflation fuelled by Rising Infrastructure and Utility Costs ........................................................... 4
3.2.2 Increasing Competition from IT outsourcing firms from China, Eastern Europe, Russia, Philippines,
Vietnam and Middle East ........................................................................................................................... 4
3.2.3 Anti-Offshoring Sentiment and Protectionism from Developed Economies like USA and Europe .......... 5
3.3.4 Increased Captive Offshoring by Many Product Companies ................................................................ 5
3.3.5 Slowing Economy in US and European Union...................................................................................... 5
3.3 Government ............................................................................................................................................ 5
3.3.1 Bureaucracy and Corruption .............................................................................................................. 5
3.4 Organizational ......................................................................................................................................... 6
3.4.1 Declining Profit Margins .................................................................................................................... 6
3.4.2 Lack of Innovation ............................................................................................................................. 6
3.4.3 Lack of Own Product Portfolio and No Presence in Product Space ....................................................... 6
3.4.4 Legacy Business Model’s like Time and Material, Fixed Price .............................................................. 7
4. Post Script .................................................................................................................................................... 7
5. References ................................................................................................................................................... 8
3. Global Sourcing
Challenges in Indian Information Technology
Outsourcing and Offshoring Service Sector
1. INTRODUCTION
The rapid growth of the IT industry over the last 10-20 years has been one of the key features of economic development across
the world. IT now outshines itself by its spread in to almost every other industry such as pharmaceuticals, manufacturing,
education etc. However it is very important to note one of the phenomenon’s that has helped the IT industry grow and shape
itself in the recent times, IT Outsourcing and Offshoring.
IT Outsourcing and Offshoring has become a key source of increased export earnings and an important driver in the
transformation of the domestic economy and its international interface for many Asian economies. In the recent years, East
Asian countries have been successful in capturing a large share of the global sourcing of IT, with India emerging as a major
center for IT services offshoring.
The Indian IT industry now plays a major role in the global information technology space catering to multiple IT companies
spread across the world, with its share expected to increase to US$225 billion by 20201. ICT research and advisory firm
Canada-based XMG Global said in its study that in 2010-11, annual revenues from IT-BPO sector for India and China is
estimated to have grown to US$76 billion and $35.76 billion with a global outsourcing industry share of 43.7% and 28.7%
respectively2 3.
However this sector continues to face many challenges in the many aspects such as people, economy, and government. Though
it is astounding to see the growth of the sector in spite of such challenges it is important to identify and find solutions to these
challenges in the near short to long term. In the paper that follows below an attempt has been made to identify such challenges
and propose very brief recommendations.
2. STUDY
The conduct of this study relies on qualitative and descriptive methods. The information has been gathered from literature
reviews, company strategies, online articles and use of social media for polling 4 and the use of discussion forums5 for different
viewpoints.
3. CHALLENGES IN THE INDIAN IT OUTSOURCING/OFFSHORING SECTOR
Challenges6 identified below are more in the context of the company to country rather than a customer to provider level. It is
important to address these issues because addressing them will help Indian IT firms stay sustainable and competitive in the
global race of IT supremacy.
In the discussion below it is not intended to cover the nuances of communicational and cultural challenges 7 such as (1) Mindset
about Management Hierarchy, (2) Attitudes Towards Appointments and Deadlines, (3) Meaning of Agreements and
Commitments, (4) Results vs. Process Orientation, (5) Directness - Especially in Addressing Disagreements.
1
Information technology in India, http://en.wikipedia.org/wiki/Information_technology_in_India
2 XMG Global Publications, http://www.xmg-global.com/
3
China steadily closing gap with India as top BPO destination, http://articles.economictimes.indiatimes.com/2010-11-
12/news/27606950_1_offshore-countries-outsourcing-industry-global-outsourcing
4
http://polls.linkedin.com/vote/141497/phgzu
5
http://www.linkedin.com/answers/international/offshoring-outsourcing/INT_OFO/863769-23327640
6
BPO industry in India – new challenges http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=52063
7
Culture Matters: 5 Challenges India Offshore Teams Face in Working with Americans,
http://www.sourcingmag.com/content/c060814a.asp
4. Challenge Map: Outsourcing Challenges in the Indian IT Outsourcing/Offshoring Sector
3.1 PEOPLE
3.1.1 TALENT QUALITY/SHORTAGE OF SKILLED PEOPLE
India is being confronted with a potential shortage of skilled workers for the next decade. It estimated that currently only about
25% of the country's technical graduates and 10 to 15 % of general college graduates are suitable for employment in the
offshore IT and BPO industries respectively.
In a recent WSJ research publication8 it was found that engineering colleges in India now have seats for 1.5 million students,
nearly four times the 390,000 available in 2000, but 75% of technical graduates and more than 85% of general graduates are
unemployable by India's high-growth global industries, including information technology and call centers.
Considering the aggressive growth projections, India needs an additional 300,000 new employees every year for the next few
years, which is still a fraction of the graduating class each year 9 . Nasscom in a report said the outsourcing industry was
expected to face a shortage of 262,000 professionals by 2012.
Some steps that could be taken to cater this problem are (1) governments should increase funding’s to educational institutions
for better facilities and educational standards along with vigilant eye on the quality of education imparted in these institutions
monitored via independent associations and committees, and (2) universities need take proactive and effective measures to
bridge the huge gap between academia and industry
3.1.2 INCREASING WAGES
Employees in India are expected to see a salary hike of 12.9% this year, among the highest in the world, as industries are
benefiting from the country's robust economic growth, according to Aon Hewitt, a global HR consultancy group 10. Specifically
speaking, the IT outsourcing sector is projected to see a salary increase of 12% which has indeed hovered in the same range for
many previous years.
8
India Graduates Millions, but Too Few Are Fit to Hire, http://online.wsj.com/article/SB10001424052748703515504576142092863219826.html
9
High wages, attrition compel IT sector to look beyond India, http://economictimes.indiatimes.com/opinion/guest-writer/high-wages-attrition-compel-it-
sector-to-look-beyond-india/articleshow/2781205.cms
10
India to see 12.9% salary hike in 2011: study, http://www.business-standard.com/india/news/india-to-see-129-salary-hike-in-2011-study/128256/on
5. Cost arbitrage is one of the most important elements in offshoring and with salaries in India rising to such high levels it is only
going to reduce this arbitrage capacity.
One of the approaches to cater this challenge is to use the expertise gained in India to setup subsidiaries in locations that
provide better cost leverage such as Philippines, Vietnam, China etc. It is also important to increase the value delivered per
dollar spent by increasing efficiency and productivity along with being more innovative.
3.1.3 HIGH ATTRITION
Indian job market has been witnessing double-digit attrition levels in many sectors, with IT sector11 leading the pack. Analysts
say attrition rates vary by 20%-40% in some firms, while the top ones averages at least 15%. The attrition rates in few of
leading companies were Infosys BPO 28%, Wipro BPO 18% and TCS BPO 21-22%12. At such alarming levels companies need
to spend considerable time and effort in hiring and training the talent pool.
Attrition has been primarily due to (1) the poaching of employees between firms in their attempt to meet the growing need for
technically qualified and fluent English-speaking manpower, and (2) due to employees moving from one firm to another in
search of a better career path13.
Some steps that could be taken to cater this problem are to increase focus on employee retention programs such as (1) rewards
and recognition, (2) options to choose a career path, (3) encouragement and help for higher studies, (4) provide better work
place environment, (5) flexible work option, and (6) employee stock options.
2.2 ECONOMY
2.2.1 HIGH INFLATION FUELLED BY RISING INFRASTRUCTURE AND UTILITY COSTS
India and many other Asian countries have been struggling with a high inflation and interest rates over the last few years. So
fears are now growing that a runaway inflation could possible slowdown the abrupt growth of economy, which were among the
fastest to recuperate from the global financial crisis 14.
Infrastructural bottlenecks are starting to plague the Indian outsourcing industry with issues such as lack of office space, rising
rental costs and real estate prices in first tier cities. Transport infrastructure, including roads, airlines and railways have also not
been able to keep up with the spillovers of growth in the ITES and IT industry. It has resulted in a kind of catch 22 situation
where in high inflation requires high salaries but high salaries cause high inflation.
A collaborated and concentrated need for better economic and monetary policies at a national and state level and dedicated
focus on building distributed infrastructure across different cities will help a long way in tackling this problem. The fact that
majority of the IT sourcing comes from Mumbai, Pune, New Delhi, Bangalore and Chennai is a stark example that emphasizes
the need to focus higher importance to introduce policies that encourage more locations, thereby reducing the stress and
dependency on these locations.
3.2.2 INCREASING COM PETITION FROM IT OUTSOURCING FIRMS FROM CHINA, EASTERN EUROPE,
RUSSIA, PHILIPPINES, VIETNAM AND MIDDLE EAST
One of the main competitors for India within the Asian region is China. Similar to India, China has a large talent pool, with 1.6
million engineering graduates and 9.6 million young professional graduates. China also has a well-developed domestic IT
industry, which is able to engage in outsourced IT operations. However, China lags far behind India in the availability of
English-speaking capabilities.
The assessment of core capabilities indicates that though there is some competition from other Asian countries, it is rather
limited. However, as labor costs rise in India and other capacity constraints becoming binding (as mentioned above), and as
other Asian governments promote their outsourcing industries, India will start to face increasing competition within the region,
especially at the lower end from players like Vietnam and the Philippines and at the middle and higher end, from China and to a
limited extent Malaysia and Singapore. But as one multinational CEO commented, “India is currently a long way ahead of other
countries in the Asian region from availability of manpower to managerial skills and maturity of the delivery model 15.
11
High wages, attrition compel IT sector to look beyond India, http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53421
12
Attrition in Indian BPO Industry, http://www.bpoindia.org/research/attrition.shtml
13
http://static.globaltrade.net/files/pdf/20100316134721.pdf
14
India slowdown, high inflation likely to persist, http://in.reuters.com/article/2011/06/24/idINIndia-57891120110624
15
http://static.globaltrade.net/files/pdf/20100316134721.pdf
6. However considering these global developments across different countries it is important to ensure that Indian IT companies
continue to build their competitive advantage in Innovation, Quality, Communication Skills and High End IT Services.
3.2.3 ANTI-OFFSHORING SENTIMENT AND PROTECTIONISM FROM DEVELOPED ECONOMIES LIKE
USA AND EUROPE
With the recent global economic recession many countries are resorting to protectionism, taking measures to discourage the
outsourcing offshoring sector. USA especially has been very vehemently 16 pursuing this, although there has also been belief
that it is being pursued more as a political agenda.
Considering the reasoning that to be competitive companies need to find sources of low price & high expertise, it is inevitable
to sustain an agenda where companies are not allowed to maneuver across borders. Though there have been thoughts, especially
in US to pass law to heavily discourage such practices it has not resulted in considerable losses for Indian IT firms.
So what it means to India is that more and more companies would try not to offshore their services outside US and EU since
that would result in tax or monetary impositions to such companies.
However to better shield the companies of any such laws and trade barriers companies should actively look at diversifying their
customer base from the current primary base which is US. Internal domestic market, though not a big share, could be an
potential opportunity in such efforts along with focusing on other emerging nations.
3.3.4 INCREASED CAPTIVE OFFSHORING BY MANY PRODUCT COMPANIES
Many global IT companies after having outsourced their services to India and having built up a good feel and confidence in the
local atmosphere are setting up their own local subsidiaries in India. Global majors such as Intel, Accenture, Cisco, IBM all
have huge workforces in India and have majority of their work operated from India. Thus captive offshoring has in a way hit
the local Indian IT players resulting in loss of revenues along with also creating high competition for talent within the firms.
Hence Indian IT firms have to come up with better synergistic business models that make better economic and operational
sense for global IT companies to outsource their operations to Indian IT firms than to setup captive offshoring facilities.
3.3.5 SLOWING ECONOMY IN US AND EUROPEAN UNION
The global economic crisis of 2008 has caused a major dent in the US and EU economies. Many later events such as the
downgrade of US Debt Rating17, Greece Debt Crisis18 and in general the European PIIGS Debt crisis19 is bringing down the
hope in the economy. It is causing fear and worry in the citizens, investors community, corporations and legislators.
Companies need to ensure that their growth plans/projections are realistic and are not too bullish on any single aspect. The
economies across the globe are highly interconnected and companies need to understand and plan their actions accordingly.
3.3 GOVERNMENT
3.3.1 BUREAUCRACY AND CORRUPTION
Political and bureaucratic corruption 20 in India is and has been a major concern over many decades. A study conducted
by Transparency International in India found that more than 45% of Indians had first-hand experience of paying
bribes or influence peddling to get jobs done in public offices successfully 21.
It was also found in a business survey across 12 economies that India’s civil servants are the least efficient among their Asian
16
Obama Speaks Out Against Offshore Outsourcing, http://www.cio.com/article/447091/Obama_Speaks_Out_Against_Offshore_Outsourcing
17
S.& P. Downgrades Debt Rating of U.S. for the First Time, http://www.nytimes.com/2011/08/06/business/us-debt-
downgraded-by-sp.html
18
Greece Debt Crisis http://www.ft.com/indepth/greece-debt-crisis
19
European Debt Crisis, What’s up with the PIIGS? http://www.marketoracle.co.uk/Article19330.html
20
Corruption in India http://en.wikipedia.org/wiki/Corruption_in_India
21
http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results
7. peers. In its report, Hong Kong-based Political & Economic Risk Consultancy (PERC) described India’s bureaucracy as
“suffocating” and said working with the country's civil servants was a "slow and painful" process 22.
Political and bureaucratic corruption is embedded in the roots of India and efforts such as Right to Information Act 2005 23,
Lokayuktha24 and Jan Lokpal Bill25 will help combat this evil. However more concerted efforts at national, local and grass-
roots level by governments, industry associations and citizens to combat corruption such as Lokpal revolution will be important
for many years to come.
3.4 ORGANIZATIONAL
3.4.1 DECLINING PROFIT MARGINS
Unlike the past, when a portion of rising salary and other operational costs were passed on to customers, clients are now
denying to share any burden transfer citing low demand in their own businesses. It is primarily because salaries have gone up
significantly over the past 15 years, but the billing rates have remained quite restrained in comparison.
Indian IT firms' 'pyramid model' wherein low cost, fresh engineering graduates are taken into the system every year to deliver
projects at nearly 30% profit margin is under pressure as salaries continue to rise. Financial analysts have forecasted 26 a 1-3 %
fall in profit margins for TCS, Infosys and Wipro with much of this fall attributed to wage hikes.
It is also that most of the outsourcing providers are highly dependent on cost leverage, which is the difference of absolute
salaries paid in India compared to a high wage country from where the work is being shifted. Hence with growing wages and
increased competition from other countries, it is important for such providers to move in to other competitive advantages such
as different business models, higher end services etc., to be sustainable in the long run.
3.4.2 LACK OF INNOVATION
There hasn’t been much work that has been done by an Indian company to have come up with significant innovations in self-
developed products or in business models. It is believed that India has not yet realized its full potential for innovation because
its education and research institutes do not encourage a culture of experimentation and the exchange of ideas between
disciplines27.
Education in India, right from primary college is more of a culture of “learn-what-is-told”, rather than “learn-on-your-own-
with-experiments”. Teachers teach you from pre-defined set of books all those years and students are expected to answer in the
exact way as mentioned in the books.
Hence the education culture needs to encourage thinking, innovation, experimenting instead of discouraging the student to do
so. There is a great change required in the education system in India to make the education to promote experiments, innovation
and unless this happens from ground level28. It is also recommended that India should encourage stronger competition among
enterprises, commercialize new knowledge, and foster research and development for poor and grass-root enterprises.
3.4.3 LACK OF OWN PRODUCT PORTFOLIO AND NO PRESENCE IN PRODUCT SPACE
India still lacks a product ecosystem compared to the highly encouraging atmosphere in that of US Silicon Valley. Investors,
banks, customers, partners and the general society along with government is Indian software product averse per say. It looks
like Indians have a mindset of anything from foreign is good in quality which has been the case of software products.
When the Indian IT firms commenced operations, they did not have access to the risk capital required for product start-ups, all
they had was access to huge human capital, which they used to build world class service companies. It is important to realize
that building a product requires both risk capital and sharp understanding of the market.
22
India’s ‘suffocating bureaucracy’ worst in Asia: Survey, http://zeenews.india.com/news/nation/india-s-suffocating-bureaucracy-worst-in-asia-
survey_536445.html
23
http://rti.gov.in/
24
http://en.wikipedia.org/wiki/Lokayukta
25
Lokpal Bill, http://en.wikipedia.org/wiki/Lokpal
26
TCS, Infosys, Wipro margins to fall, http://economictimes.indiatimes.com/tech/ites/tcs-infosys-wipro-margins-to-fall-as-us-outsourcing-customers-like-
walmart-home-depot-cisco-ericson-cut-rates/articleshow/9180107.cms
27
India 'lagging behind' in innovation race, http://www.scidev.net/en/news/india-lagging-behind-in-innovation-race.html
28
Lack of entrepreneurship & innovation in India - root cause in education system? http://sollerthoughts.co.uk/2009/02/23/entrepreneurship-innovation-in-
india-root-cause-in-education-system/
8. However with the years of experience of providing IT services all over the world, Indian IT industry and its workforce have
now acquired a good understanding of the market. It is also that the risk capital to invest in developing products is now
available to startup companies in India and established IT companies have the financial strength to self-fund product
development29. Hence there should be substantial focus by IT majors to focus efforts towards building their own product
portfolio. It is my opinion that contribution of IT-ITES will be marginal in contribution towards Indian GDP compared what
technology product companies could do.
3.4.4 LEGACY BUSINESS MODEL’S LIKE TIME AND MATERIAL, FIXED PRICE
Since the beginning of Indian IT space, Time & Material and Fixed Price business models coupled with onshore and offshore
models have been the primary growth engines of the Indian outsourcing industry and now it is high time for things to change.
It is especially because as IT services move higher-up in the value chain towards innovation process outsourcing such models
render difficulty in quantifying and evaluating the efforts.
Many companies such as Infosys, MindTree and ITISL 30 are actively exploring and establishing business models such as
revenue sharing which are considered to be better than the prevailing models.
4. POST SCRIPT
Increased competition from emerging IT locations, falling profit margins, gloomy global economy and war for talent have
emerged has the foremost challenges in the current Indian IT scene. Challenges apart from these such as Data Security,
Currency Fluctuation, Quality of service and Cultural issues are still negligible in comparison. The focus of this paper was to
highlight the issues currently facing the Indian IT industry and en-route provide feasible brief recommendations. To be able to
be competitive & self-sustainable in the long run Indian IT firms have to continually innovate their business models, employee
practices, cost structures along with working in close association with Industry bodies & Governmental organizations.
29
Time is now ripe for emergence of IT product companies in India, http://www.indianexpress.com/news/time-is-now-ripe-for-emergence-of-it-
product/233438/
30
Business Models, http://www.itisl.com/MainGroup/abtBusModels.aspx
9. 5. REFERENCES
Information technology in India, http://en.wikipedia.org/wiki/Information_technology_in_India
XMG Global Publications, http://www.xmg-global.com/
China steadily closing gap with India as top BPO destination, http://articles.economictimes.indiatimes.com/2010-11-
12/news/27606950_1_offshore-countries-outsourcing-industry-global-outsourcing
LinkedIn Polls, http://polls.linkedin.com/vote/141497/phgzu
LinkedIn Discussion Forum, http://www.linkedin.com/answers/international/offshoring-outsourcing/INT_OFO/863769-
23327640
India Graduates Millions, but Too Few Are Fit to Hire,
http://online.wsj.com/article/SB10001424052748703515504576142092863219826.html
High wages, attrition compel IT sector to look beyond India, http://economictimes.indiatimes.com/opinion/guest-
writer/high-wages-attrition-compel-it-sector-to-look-beyond-india/articleshow/2781205.cms
India to see 12.9% salary hike in 2011: study, http://www.business-standard.com/india/news/india-to-see-129-salary-
hike-in-2011-study/128256/on
High wages, attrition compel IT sector to look beyond India,
http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53421
Attrition in Indian BPO Industry, http://www.bpoindia.org/research/attrition.shtml
http://static.globaltrade.net/files/pdf/20100316134721.pdf
India slowdown, high inflation likely to persist, http://in.reuters.com/article/2011/06/24/idINIndia-57891120110624
http://static.globaltrade.net/files/pdf/20100316134721.pdf
Obama Speaks Out Against Offshore Outsourcing,
http://www.cio.com/article/447091/Obama_Speaks_Out_Against_Offshore_Outsourcing
Corruption in India http://en.wikipedia.org/wiki/Corruption_in_India
http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results
India’s ‘suffocating bureaucracy’ worst in Asia: Survey, http://zeenews.india.com/news/nation/india-s-suffocating-
bureaucracy-worst-in-asia-survey_536445.html
RTI in India, http://rti.gov.in/
Lokayukta, http://en.wikipedia.org/wiki/Lokayukta
Lokpal Bill, http://en.wikipedia.org/wiki/Lokpal
TCS, Infosys, Wipro margins to fall, http://economictimes.indiatimes.com/tech/ites/tcs-infosys-wipro-margins-to-fall-as-
us-outsourcing-customers-like-walmart-home-depot-cisco-ericson-cut-rates/articleshow/9180107.cms
India 'lagging behind' in innovation race, http://www.scidev.net/en/news/india-lagging-behind-in-innovation-race.html
Lack of entrepreneurship & innovation in India - root cause in education system?
http://sollerthoughts.co.uk/2009/02/23/entrepreneurship-innovation-in-india-root-cause-in-education-system/
Time is now ripe for emergence of IT product companies in India, http://www.indianexpress.com/news/time-is-now-ripe-
for-emergence-of-it-product/233438/
Business Models, http://www.itisl.com/MainGroup/abtBusModels.aspx