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• De-regulation and Liberalization Policies

• Enactment of Cyber Legislation

• Working on a stronger data protection and privacy law in association with NASSCOM

Apart from the above-mentioned advantages, favorable policies of Indian government are also a huge advantage for foreign companies. Government is pulling a lot of FDI (foreign direct investment) into the country. Investing into India has become much easier. A special preference is given to the IT sector. Even the infrastructure in India is improving tremendously. Positive changes are taking place in the area of telecommunications, electricity, building of roads, etc. Advantages of outsourcing to India are immense.

Conclusion

We should accept the ‘Outsourcer’ and the ‘Offshore-r’ because of technology transfer, employment leading to growth of more number of industries and firms, less of brain-drain, more number of educational institutions, literacy rate going up, improved trade relationships, infrastructure improvement, freedom for women from the ancient orthodox beliefs, and more competition. It should be the combined effort of NASSCOM and Indian Government to drive overall growth of the global off-shoring market and ensure India’s position as the leading destination for IT & BPO.

Discussion

Despite the availability of training manpower, a demand-supply gap still exists in the IT manpower market. In order to maintain India's competitive advantage of technically skilled knowledge-workers with the right mix of technical, business and functional skills, the workforce needs to increase. As per the Nasscom-McKinsey Report of 1999, India needs to have at least 2.2 million knowledge workers in IT software and services related areas by 2008. Though the quantity of workers is important, it is the quality of this knowledge base that will ultimately play a crucial role in deciding the fate of the IT industry in India.

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* Contributed by: -
B. Pothi Babu & Biswarup Das,
Both currently pursuing MBA from BIM, Trichy,
Article published in KRIYA, March'06 Issue, the monthly magazine of the institute.