The country’s exports in Offshore Outsourcing India exports-services that are expected to grow nearly 32 percent in the next year. If counting in monetary term software outsourcing grew by $12 billion, while exports of business process outsourcing (BPO), call center, and related services grew by $5.2 billion, which accounted for Offshore Outsourcing export from India.
The projected growth in between 18 and 20 per cent over the next 4-5 years India could potentially accelerate the overall Information Technology exports by a $15 billion by the year 2010, if it focuses on multi-dimensional innovation.
Interestingly, a lot of Indian companies are adopting the model followed by their counterparts in United States of America and Europe, of Offshore Outsourcing their non-core functions across areas of manufacturing, banking and finance and insurance sectors. Commensurate with the growth projections, the domestic market is set for growth, as opposed to $4.8 billion last year, it is projected to touch $7billion this year and reach $20 billion by year 2010.
In future it is expected that a mere cost arbitrage will not help and innovation would cut across business models, knowledge and research areas, intellectual property creation and scaling up the value chain within the existing services streams both in software as also business process outsourcing. Look at a scenario where cost is the only competitive advantage in Offshore Outsourcing India.
Offshore Outsourcing India
For instance, taking advantage of Offshore Outsourcing India companies by outsourcer and saving about 50 per cent, it expects to come down at least by 10 per cent in coming few year. The areas that have been overlooked relate to the implications that innovation can bring about in cost savings. This is important as countries in the Eastern Europe are closing up in some areas.
The area such as data management and analysis which involves cross-functional disciplines opens up new segments and expects such deals to grow. In case of high-end offshore outsourcing; there is a need for operational excellence.
The two sectors Software Development India and Offshore Outsourcing of the Indian economy will earn more than $60 billion in exports by year 2010. The projected growth is going to directly employ approximately 2.3 million people, provide indirect employment to another 6.5 million workers and pay for a massive infrastructure build-out by 2010. An increase from 3 per cent of gross domestic product to about 7 per cent, the BPO industry is expected to grow from $11.6 billion to $150 billion by next 5 year and IT Offshore Outsourcing, from $18.4 billion to $150 billion over the period of 2010.
Offshore Outsourcing India is going to by ten times. The growth will come with Indian companies continuing to maintain their 46 percent share of the global business processing outsourcing market and a 65 percent share of the outsourcing market through 2010. Offshore outsourcing India exports have thus risen and are expected to jump from $30 billion to an estimate $300billion by the end of the first decade.