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A survey jointly undertaken by KPMG and the Economist Intelligence Unit validated the view of India as "a world apart in outsourcing".
The report further elucidate that companies in India are more open to outsourcing all kinds of business functions in the region. While the rest of other outsourcing location in Asia cited "cost savings" as the core benefit of outsourcing, India believed that "allowing the company to focus on its core competencies" was the main criterion.
Dane Anderson, CEO of Springboard Research, adds an interesting fact to this divergent issue. According to him "As the country grows, Indian IT companies are finding it tough to cope with the developing scenario.
Anderson further strengthens his opinion by citing an example, about the latest outsourcing deal between IBM and a large wireless operator. He indicates that the latter was trying to grow with the market but to develop the IT operations to do that was a little hard, so in such cases if they plug in an outsourcing solution, they probably can benefit from that growth faster.
He also pointed that the success of the Indian IT industry in offshoring is for the fact that India has shown the power of outsourcing, and how well it manages to encompass those tasks throughout the country better than others.
There is also the attrition issue, like how to keep people and pay people. Its really tough in India now, and if they can even outsource that challenge to a provider, I think that makes it easier for them to cope.
The World Economic Forums Global Competitiveness Index for 2006, ranked India at 43rd among 125 countries, this is remarkably a high achievement with regards to capacity for innovation and sophistication of firm operations.
This is largely true, taking into fact that the quality of scientific research and the number of scientists and engineers, which are increasingly catering highly skilled professionals to the private sector.
The report also sounds on the contrary too, when it reads "Though India makes good use of quality technology, but the penetration levels of the latest technologies remain "quite low by international standards, and thats mainly because of Indias low levels per capita income and high prevalence of poverty
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