Offshore Outsourcing as an Export Business
The nation's export business for Offshore Outsourcing services are expected to grow in between 30 to 32 percent in the forthcoming year. While counting in monetary term software outsourcing business grew by 12 billion dollars, and exports of BPO, call center, and related services grew by 5.2 billion dollar that accounted in Offshore Outsourcing Indian export.
Interestingly lots of Indian organizations are adopting the model followed by their competitor in USA and Europe for Offshore Outsourcing and their non-core functions across areas of banking, manufacturing, finance and insurance sectors. The domestic market is set for growth as commensurate with the growth projections that opposed to 4.8 billion dollars previous year and its projected to touch 7 billion dollars during this year, will reach 20 billion dollar by year 2010. In time of future its expected that a mere cost arbitrage will not help & innovation would cut across business models. Look at the scenario where cost is the only competitive advantage in Offshore Outsourcing Industry.
The area such as data management and analysis which involves cross-functional disciplines and opens up new segments, by expecting such deals to grow, in the case of high-end offshore outsourcing; there is need for operational excellence. For instance, taking benefits of Indian Offshore Outsourcing firms by outsourcer and saving about fifty percent but it might expected to come down by at least ten percent in next few years. The areas that have been overlooked relate to the implications that innovation could bring for cost savings.
The two sectors, Software Development and Offshore Outsourcing for Indian economy will earn more than 60 billion dollars in exports by end of 2010. The projected growth will provide directly employment to 2.3 million people, approximately. And it will provide indirect employment to another 6.5 million employees by year 2010. Increase from 3 % of gross domestic product to about 7 % will occur due to Offshore Outsourcing process.
The Indian Offshore Outsourcing business is going to increase by 10 times. The growth will come with Indian organizations continuing to maintain their fourty-six % share in international BPO market and 65 % share of the IT Outsourcing market through the year 2010.