In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are outsourcing these services from locations like India. India has inherent strengths, which have made it a major success as an outsourcing destination:
Scope
- A booming IT industry, with IT strengths recognized all over the world
- The largest English-speaking population after the USA.
- A vast workforce of educated, English speaking, tech-savvy
personnel: A boon in a high-growth industry faced with a shortage of
skilled workers.
- Cost-effective manpower: In a call interaction center operation,
manpower typically accounts for 55 to 60 percent of the total cost.
In India, the manpower cost is approximately one-tenth of what it is
overseas. Per agent cost in USA is approximately $40,000 while in
India it is only $5,000.
- Technical support: India graduates about 100,000 engineers each year. These can be used in call centers for troubleshooting/tech support, as the salaries are dramatically lower than in Europe or the US.
- The Government of India has recognized the potential of
IT-enabled services and has taken positive steps by providing
numerous incentives.
- 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.
- 100% foreign ownership permitted in IT Enabled Services industry
unlike other sectors where foreign ownership is restricted.
- Software Technology Parks (STPs) established.
- To provide ready to plug IT infrastructure and telecom
facilities.
- Single window clearance for all regulatory compliance issues.
- Basic, Cellular, Paging and Internet Services privatized.
- Domestic leased circuit tariff reduced by 80% in last 1 year.
- International Internet Gateway privatized-likely reduction in tariff
