Offshoring Region Asia
India first benefited from the offshoring trend as it
has a large pool
of English speaking people and technically proficient manpower. India's
offshoring industry took root in low-end IT functions in the early
1990s and has since moved to back-office processes such as call centers
and transaction processing. In the late 1990s, India's abundant and
cheap software engineering talent combined with massive demand from the
Y2K problem helped to move India up the value chain to attract
large-scale software development projects.
Currently, India's engineering talent has made India the
destination of global high-tech firms like HP, IBM, Intel, AMD,
Microsoft, Oracle Corporation, Cisco, SAP, BEA and so on. Each of these
companies is in the process of investing in India, to
supposedly retain market share in the face of competition and
cost-cutting measures of rivals and industry in general.
Due to inflation, high domestic interest rates, robust
and increased IT offshoring, Indian IT sector has witnessed 10 - 15%
wage growth in the 21st century. Consequently, Indian's operations and
firms are concerned that they are becoming too expensive in comparison
with competition from the other offshoring destinations. To maintain
high growth rates, attempts have been made to go up the value chain and
and diversify to other high-end work in addition to software and
hardware engineering. These jobs include research and development,
equity analysis, tax-return processing, radiological analysis, medical
transcription, and more.
An example of a service provider from India successfully
selling to Germany is FEA technics.
Feedback from German
CIOs (benefits and hurdles) about Offshoring to India.