Why Outsourcing from India?
Robust communication infrastructure, a large English-speaking workforce, low labor costs, appropriate time-zone difference with the West and the brand equity built by the software services sector are compelling reasons for choosing India as the BPO destination.
The international bandwidth situation has improved dramatically over the last 3 years with the launch of India's first private undersea cable. Moreover, considerable bandwidth is also available to companies through state owned Videsh Sanchar Nigam Limited - VSNL(partially owned by India's largest business conglomerate). VSNL has strategic stakes and has negotiated contracts to use parts of several international cables like SEA-ME-WE II, SEA-ME-WE III(40 GBPS capacity),FLAG (10 GBPS capacity) and SAFE (40 GBPS capacity) offering connectivity to most locations around the world. Other private operators in India also have aggressive plans to build
undersea cable with considerable bandwidth over the next 2-3 years. Besides, the privatization of NLD operations within India has resulted in the emergence of new players. The privatization of the telecom Industry has resulted in significant drop in telecom rates. Continuing competition in the industry with the recent entry of newer players will see a further drop in telecom prices. As a result, the telecom costs have dropped by 85% in 3 years.
Power availability has also improved dramatically over the last 5 years, thus ensuring power reliability at most ITES locations like Bangalore, Delhi, Chennai, Bombay, Pune and Calcutta. Respective state governments in India have undertaken reforms in the power sector to improve power supply to ITES companies.
The Business Process Outsourcing industry in India has been growing 70 percent a year and is now worth $1.6 billion, employing 100,000 people. And as McKinsey analysts put it, BPO has to grow only 27 percent till 2008 to deliver $17 billion in revenues and employment of a million people
Robust communication infrastructure, a large English-speaking workforce, low labor costs, appropriate time-zone difference with the West and the brand equity built by the software services sector are compelling reasons for choosing India as the BPO destination.
The international bandwidth situation has improved dramatically over the last 3 years with the launch of India's first private undersea cable. Moreover, considerable bandwidth is also available to companies through state owned Videsh Sanchar Nigam Limited - VSNL(partially owned by India's largest business conglomerate). VSNL has strategic stakes and has negotiated contracts to use parts of several international cables like SEA-ME-WE II, SEA-ME-WE III(40 GBPS capacity),FLAG (10 GBPS capacity) and SAFE (40 GBPS capacity) offering connectivity to most locations around the world. Other private operators in India also have aggressive plans to build
undersea cable with considerable bandwidth over the next 2-3 years. Besides, the privatization of NLD operations within India has resulted in the emergence of new players. The privatization of the telecom Industry has resulted in significant drop in telecom rates. Continuing competition in the industry with the recent entry of newer players will see a further drop in telecom prices. As a result, the telecom costs have dropped by 85% in 3 years.
Power availability has also improved dramatically over the last 5 years, thus ensuring power reliability at most ITES locations like Bangalore, Delhi, Chennai, Bombay, Pune and Calcutta. Respective state governments in India have undertaken reforms in the power sector to improve power supply to ITES companies.
The Business Process Outsourcing industry in India has been growing 70 percent a year and is now worth $1.6 billion, employing 100,000 people. And as McKinsey analysts put it, BPO has to grow only 27 percent till 2008 to deliver $17 billion in revenues and employment of a million people