Common Outsourcing Queries Answered

Who should outsource?

Just about everybody: from entrepreneurs in the SOHO (small office home office) segment to small and medium enterprises (SME), to large businesses and empires with diversified interests and varied business processes. Every business benefits hugely through outsourcing because technology is changing so fast, it has to be leveraged and used to the maximum to deliver the competitive advantage to a company. As Pat Wallington Xerox said, ""I view outsourcing as part of the transformation strategy."

What can Outsourcing give you?

• A technical and functional edge on the competition -- without capital investment.
• Faster development and start up
• Lower cost
• Enhanced performance
• A better-managed e-business infrastructure
• Reliability
• Security
• Maximizes uptime
• A more effective operating environment at the backend.

What should I outsource?

• Web recruitment solutions
• Payroll management
• Human Resource Administration
• Performance management
• E Learning Solutions
• Intranet Development
• Transaction management
• Employee Relationship Management Tools
• Customer Relationship Management Tools
• Supply Chain Management Solutions
• Billing and Accounting Services

When should I outsource?

• When you're losing focus on your core business because you're too busy handling operations
• When you're facing a time, money and human resource crunch
• When you have a mission-critical project that needs all your time and energy, plus specialized skills which aren't readily available
• When you've got to be the first into the market to gain an edge

Where should I outsource?

According to Dun & Bradstreet's most recent Barometer of Global Outsourcing, outsourcing expenditures will top $1 trillion worldwide by year end 2000. These expenditures have doubled in just the past three years alone. North America leads in outsourcing spending, representing 39 percent of the global total, followed by Asia at 31 percent and Europe at 25 percent.

The future shape of business is being redefined through outsourcing

Why Outsource to India?

India is a talent-rich country: outsource IT talent.

India exports software to 95 countries around the world: outsource expertise in global methodologies.

India enjoys the confidence of global corporations: outsource high quality brain-power.

• 82% of US companies ranked India as their first choice for software outsourcing
• Bill Gates says India is an IT superpower: strikes strategic alliances with Wipro and Infosys to develop applications on the .Net platform
• Jack Welch opens $130 million Technology Center in Bangalore, GE's largest R&D center outside the US: celebrates 10 years of GE Medical Systems in India

India has state-of-the-art technologies for total solutions: outsource turnkey projects

Offshore assignments have moved up the value chain - from data entry to large and complex turnkey projects of 200 to 300 person years.

Applications include:

• E-Commerce
• Business Process Re-engineering
• System Migration
• Maintaining Legacy Systems
• System Integration
• CBI Applications

IT is a major thrust area for the Government of India

• IT is one of the Government of India's top five priorities.
• The National IT Task Force submitted its 108 point Action Plan to promote IT in the country. The Government of India has approved the plan and is in the process of implementing it.
• A separate Ministry of Information Technology was set up to expedite swift approval and implementation of IT projects and to streamline the regulatory process.
• Information Technology Act 2000: The Information Technology Bill that was passed in the Indian Parliament in May 2000, has now been notified as the IT Act 2000. The IT Bill brings E-commerce within the purview of law and accords stringent punishments to "cyber criminals". With this, India joins a select band of 12 nations that have cyber laws.

Software Technology Parks of India offer world-class infrastructure and various incentives and concessions to encourage foreign investment and promote software development in India eg 100% Foreign equity is permitted and approved under the Automatic Route delegated powers to The Director STPI, tax holiday until 2010, etc.

India has a stable government and is one of the world's 10 fastest-growing economies

• Fifty years of democracy
• Economy expected to grow by 5.9 percent in 1999-2000
• Indian service sector contributes a massive 51 per cent to India's GDP.Within this category, the most promising is computer software export, which grew at an amazing rate of 40-50 per cent every year during the 1990s.
• Excellent investment potential: India ranked third in Asia, just after Japan and China, in terms of investment potential for the next 10-year period in a study by the Export-Import bank of Japan.
• Privatization of the infrastructure sector
• A convergent network is being created by the intertwining of the ISP, Telecom, VSAT, Cellular and networking sectors. India's large business houses and Public Sector Units are working towards creating greater bandwidth availability.
• Now that you have seven powerful reasons to outsource to India, why not take the first step and make the decision?

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