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It won't look surprising if we call India as "Mecca of Offshore and Outsourcing". According to a study conducted by Forrester in November, 2001, India's edge over other competing nations in the IT outsourcing business is based on the country's decade old experience in this area, fluency in the English language, supportive Government policy, infrastructure, and high quality offerings. (Source: NASSCOM) |
Below, we present you some reasons that justify why India is a preferred destination for businesses to outsource their offshore-based activities: -
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Large Human Resource with approximately 17 Million people available in IT industry by 2008. (Source: NASSCOM) |
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Maximum Cost Advantage. This is one the major reasons, which makes a company, outsource to India. Significant cost saving can be achieved by IT outsourcing to India, owing to the wide gap between the personal costs in India and that of the developed countries. Offshore outsourcing to India offers considerable economical benefits for those who are prepared to exploit the advantages of outsourcing. An independent report estimated that for every $1 invested in India via Offshoring, the American Economy gained $1.14 in direct and indirect benefits. (Source: NASSCOM) |
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Incorporation of Quality Standards like globally recognized SEI-CMM, P-CMM Levels and ISO 9000 Certification by Indian IT companies to ensure quality services for their customers. As on 31 st March 2002, India had 42 companies at SEI CMM Level 5 assessment and 316 companies who have already acquired quality certifications worldwide. The ratio of international standard operating companies in India to that of the world has zoomed to 60% of the total. Thus India today is becoming a powerhouse for outsourcing just on the potential that it has in store for the world. |
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Friendly Government Policies towards Offshore Outsourcing by offering various tax benefits and sops for IT and ITES industry. IT is regarded as one of the top 5 priority industries in India. IT is a part of the national agenda, and policies are framed so as to obtain maximum benefit out of IT outsourcing to India. The liberalization and deregulation initiatives taken by the government are aimed at supporting growth & integration with the global economy. These reforms have enabled the entry of foreign companies to the Indian market. FDI investment from NRI's including Overseas Corporate Bodies (OCB's); owned by the NRI's are warmly welcomed in India. The new National Telecom Policy has invited private participants to the Indian telecom sector. The IT bill passed in 2000, gives a legal framework for the recognition of electronic contracts, prevention of computer crime and electronic filing of documents. NASSCOM along with the government is playing a notable role in protecting the interests of the IT sector. Thus with all these help, IT outsourcing to India has reached a point of no turning back. |
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Quality Manpower with strong technical skills, good language command and eagerness to accommodate Clients. The qualified manpower of the country is well equipped with equally good exposure and experience in the new and upcoming technologies. The experience and expertise ranges from providing solutions to a small grocery vendor to a large MNC corporation. These both advantages not only have boost up the outsourcing to India but also has helped India gain the name of an IT powerhouse |
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Strong Education System that emphasizes on mathematics and science along with English language proficiency. |
India Advantages
