General Management @ Knowledge Zone



Outsourcing

- by Shuchi Singla *

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  • Recognizing the importance of Venture Capital Funding, the Ministry of Information Technology has set up a National Venture Fund for the Software and IT Industry with a corpus of Rs.100 crore in association with the Small Industries Development Bank of India (SIDBI) and Industrial Development Bank of India (IDBI). The aim of the Fund is to provide Venture Capital to start up software professionals and IT units in the small-scale sector.

  • Nasscom has been playing a crucial role in helping the IT industry achieve the ITS and ITES vision. Along with the government, Nasscom has taken many steps towards efficient implementation of the above mentioned government policies.
    Nasscom has helped the government implement almost all the original recommendations of the last Nasscom-McKinsey Report, 1999 concerning the capital markets, venture capitalists, SEBI and the Companies Act.

The abundant skilled manpower has made India a target destination for multinationals to back end their operations in India. India ranks high in areas such as qualifications, capabilities, quality of work, linguistic capabilities and work ethics, and thus is ahead of competitors such as China, Philippines, Ireland, Australia, Canada, etc. Indian companies have unique capabilities and systems to set measure and monitor quality targets.

In specific BPO categories, Indian centers have achieved higher productivity levels-for example, the number of transactions per hour for back office processing, than their Western counterparts. Also, India is able to offer a 24x7 services and reduction in turnaround times by leveraging time zone differences. India's unique geographic positioning makes this possible. Many state governments in India are offering incentives and infrastructure to set up IT enabled services. About 100,000 engineers graduate from India every year. Many of these engineers are employed with call centers for troubleshooting and providing technical support at salaries that are dramatically lower compared to the pay scales in the US. The average monthly salary in India is $400-700 compared to $2,700-2,800 in the US.

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* Contributed by -
Shuchi Singla,
Global Business Operations, Semester-11,
Shri Ram College Of Commerce,
University Of Delhi.