Rush for Outsourcing to IndiaFriday, June 03, 2005
According to the estimation of Nasscom, over 660 multinational companies are coming yearly to India. And each company brings a business of over 1 million dollars. The biggest reason for this attraction is cost. India has cheap labor. While, in the US and other developed countries, rates vary from 55$ to 65$ per hour, in India, it ranges widely from $5 per hour to $26 per hour.
Offshoring is not just limited to software development but it ranges widely from software development, maintenance to other IT enabled services like call center any back-office work. Nasscom expected Indian revenue to be around 17 billion US $ but it crossed expectation to 22 billion $. It is because 400 out of the top 500 fortune companies have their own centers in India or they are outsourcing to Indian technology firms. It is expected that this growth will continue and Indian export will reach $ 48 billion by the end of the year 2008 which will be 51% of the total outsourcing business. By the end of the fiscal year 2004-05, the Indian outsourcing industry employed 1.05 million people and giving indirect employment to 2.5 million people.