Alarming call for Software Development IndiaFriday, March 10, 2006
Facts and figures alone may not be able to describe the whole story. Still the truth is that from FY 2001-05, India’s share of global IT Outsourcing raised from 62% to 65% and from 39% to 46% for ITES-BPO. It is also true that successful models breed competition and is throwing the country in the “Red Ocean”. The Indian IT-ITES (IT-enabled services) segment has competition on its hands is borne out by the fact that many other destinations are being presented as another options for overseas services and this can be considered as an alarming call for Software Development India. Though the country would remain the most demanded and preferred location for IT Outsourcing. India has lots of plus points over the others.
Country got a weighted score of 10 based on their financial structure, manpower and skills availability and perfect business environment. Country scored the highest with a weighted score of 6.87 points and got the top rank. On the second rank it was China with 6.17. Third position was held by Malaysia with 6.07 and the Philippines was on the fourth spot with 5.78. Though the US came on the first spot in the manpower and skills category with 2.74 points and India was third on the third position for this category with 2.14 points.
The Indian industry is aiming to reach the figure of $60 billion in exports by 2010. Country is also putting serious efforts behind it. This figure indicates the demand of almost 850,000 IT and 1.4 million ITES-BPO skilled and talented manpower by 2010 for Offshore Outsourcing services. Though at present country has a shortfall of around 500,000 manpower to meet the needs of Software Development India. Country was succeeded to generate an uproar in the US territory because of the skilled and talented pool of professionals and has snatched the market away from the West.
Software Development India is undiputed global leader
India is in the list of the fastest growing IT Outsourcing markets in the Asia-Pacific region. The players in this country may have some international business. They are also focusing on niche areas such as Human Resource firms providing payroll processing services globally. Country’s financial structure figure has fallen by a marginal 0.2 points compared with the previous year figure. Software Development India is undisputed global leader for IT services, though country is still required to move up the value chain.
Country’s stress on infrastructure side has to move to the Tier-II cities and facilities since the Tier-I cities have almost reached to the saturation point, and this is a real fact too. Offshore Software Development and services sector has been witnessing a steady reduction in profit margins of the company. It is due to the cost of the employees are also rising day by day. All these seem to be the alarming factors for Software Development India in global market.