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Explore the challenges and opportunities that the outsourcing industry in India faces, including language skills, security concerns, qualifications of outsourcers, and the need for diversification. Discover how India can sustain its position as a leading outsourcing hub.
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Outsourcing & India Reni James Sara Chopp ShwethaSabu Chris Arwady
Quality of Service “When it comes to quality is perception reality?”
Language Skills • 333 million Indians speak English. • As a result, India has a large BPO industry. • The National Knowledge Commission reports only 1% of Indians use English as a second language. • This is allowing other countries, like China, to successfully compete with India in Voice based outsourcing. • The British Council attributes the high demand for English proficiency to the lack of quality education. • An increase in English proficiency of Indian citizens, in addition to a greater understanding of American culture and more neutralized accents is critical for India’s sustainability. • These changes are necessary in order for India to continue to compete against other countries in the rapidly growing BPO industry.
Security The EU does not consider India to be a data secure nation, restricting India’s outsourcing business and the flow of sensitive data. New Delhi requests a change in status in order to boost trade in India’s IT-BPO industry. New Delhi is using the bi-lateral trade agreement to argue for the free flow of services in order to boost outsourcing of low-end jobs from Europe and high-end jobs from the United States and protect exports from this work. For sustainability, India must ensure privacy protection of data.
Qualifications of Outsourcers • The current ESO industry in India earns $7-9 billion. • India is gaining new customers for the outsourcing of design engineering projects. • This has the potential to achieve $55 billion in revenues over the next 7 years. • New outsourcers have the ability to reduce production costs by 30-40%, as well as to reduce the design cycles. • This will diversify India’s current ESO industry beyond aviation and defense, which includes a potential 4% growth in the engineering and industrial services industry. • This will create greater opportunity for job growth, as well as greater demand in India’s domestic market.
