India’s IT Outsourcing and services exports grew more than $17 billion in the fiscal year to March 31 last year when compared to 34.5 percent from the previous year. If India does not focus on multi-dimensional innovation services, it could potentially accelerate only IT Outsourcing exports by a whopping $20 billion by the year 2010.
The India’s total IT outsourcing exports, U.S. accounted for about 68 percent and Europe accounting for another 24 percent. About 35 percent of exports of Information Technology services by Indian and 65 percent of the exports of BPO call center, and related services came from wholly owned operations in India by multinational companies.
Numbers of multinational services, technology companies, and user companies have set up software development, BPO, and call center subsidiaries in India while the Indian IT Outsourcing companies offering services to companies in the Europe and American countries.
India’s Outsourcing industry currently employs over 1 million according to study, and the jobs were created not only in the metro cities but in smaller towns as well. Because of demand for Indian software, BPO call center, and other services grew; the industry faced a shortage of staff, which is particularly acute in the BPO and call center industry. The industry will have to improve its services and processes to add greater value to the customer and improve productivity in IT Outsourcing industry.
The staffs salaries have improved in Software Development and service Outsourcing firms when there was shortage of staffs, companies were able to contain and at times even lower their costs by better utilization of resources, a decrease in infrastructure costs, and lower telecom tariffs.
Now for long term, India’s IT outsourcing industry will have to forge ties with educational institutions to ensure a larger supply of quality Information Technology professional for the industry said India’s largest outsourcing company.
Another report says that the country’s exports of IT Outsourcing and services are expected to grow nearly 32 percent in the next fiscal year 2006. In this year, exports of IT software and services grew by 30.5 percent to $12 billion, while exports of business process outsourcing, call center, and related services grew by 44.5 percent to $5.2 billion. Despite fierce opposition last year to offshore outsourcing from politicians and workers unions in the United States of America the growth in IT outsourcing exports came rapidly.