India’s Offshore Outsourcing industry requires new business partners and IT markets for continuation its remarkable growth said by President APJ Abdul Kalam. At a meeting of the nation’s top Software Development professionals he said that with the chunk of Offshore Outsourcing market by North America and Europe, it requires to target other international markets for driving continuous growth. We should focus to make partnership with other nations in Asia Pacific, Korea, Philippines and Singapore region to encourage innovation with creativity and increase significance of clients. And India must create a market in Africa as well.
As we all know that India is the global leader for Offshore Outsourcing, and already it has captured about half of the business internationally. The Americans are the biggest in number almost up to 71 per cent for Indian offshoring, out of total market. Top multinational organizations (MNC’s) globally farm out work from infrastructure support, for the purpose of coding or software development, to call centers to nations like India, with its low wages and millions of skilled IT-programmers.
In the last fiscal year India’s software and back-office offshoring exports was total round about 23 billion dollar that is close to 19 billion euro that grows by 31 per cent over the previous year, according to the report by NASSCOM. The association reviewed that the nation is on track to reach annual exports of almost 60 billion dollar in Offshoring business that is almost 50 billion euro by year 2010. But it would be challenge for India to set a target of 200 billion dollar by 2008 year end.
National Offshore Outsourcing
IT services, including Software Development, are expected to contribute by 13 billion American dollars for exports in the current fiscal year and the BPO, call centers are likely to contribute 6.3 billion dollar. Employment in the nation’s Offshore Outsourcing and services sector is likely to reach 1.3 million, out of which about 922,000 are getting employment in the export oriented sector. According to data released earlier this month by the Indian National Association of Software and Service Companies, the estimation of India’s software services exports to grow by more than 32% to reach 24 billion American dollar or35 billion NZ dollar up to the next financial year.
A report released in last month of previous year that the management consulting firm was also upbeat about the prospects for India’s offshore industry. India can sustain its global leadership in offshoring and grow its IT and Business Process Outsourcing industries with more than 25 per cent annual rate to generate export revenues of about 61 billion American dollar by year 2011. So we can say that India’s Offshore Outsourcing industry is riding on boom