Monday, April 04, 2005

Why big tycoons outsource in India?

In recent years outsourcers, consultants, site selectors, economic development services, IT industries have been touting India like a shadow following an object. There might be myriad reasons to it but the foundation has been laid in the sector of business process outsourcing in India and no one can deny it!
Site Selector experts report that they have been busy seeking a location/country that promises better services, quality, interactive dialects, faster and convenient access, economical salary structure and minimal security risks. More often they end up suggesting India.

Their verdict

· Lower Costs
· High qualified workers
· Elevated educational systems
· Convenient dialects
· Affinity in accent
· Superior Customer Service culture
· Performance Levels
· Congenial ambience and stability
· Infrastructure

The call centers in India have more provisions than any other Asian countries (Pakistan, China and more) in terms of cost, education, living standards, infrastructure and stability as per the requisites of call center sophistication.

The wages comparison

Country ------------------------------------Hourly Wages (approx. in $)

U.K. --------------------------------------------------------$25 -30
U.S. --------------------------------------------------------$14 -20
Canada ----------------------------------------------------$10 -15
Philippines ------------------------------------------------$05 - 10
South Africa ----------------------------------------------$03 - 05
China ------------------------------------------------------$02 - 04
India -------------------------------------------------------$0.5 - 01

Indisputably the currency plays a vital role in Indian business potential. The rationale cause is the expansion of business and recognition of brand identity but the main justification as to why big tycoons seek their future in outsourcing to India is the opportune economical structure.

Prasad Unawane

Dell set to expand its wings in India.

One of the world’s largest PC maker have recently announced that they would push deeper in the low-cost countries by hiring another 1,200 staff for a call center in India. Texas based Michael Dell, founder and chairman of Dell Company said, “I am expecting around 1,500 employees in a year as compared to 300 to start with this recently inaugurated call center.”
This lately opened call center is based in Punjab, Mohali. Apart from this call center they have other two call centers in major cities in India, Hyderabad and Bangalore (profoundly known as the capital of Information Technology).

Dell employs more than 7,000 people in India, its largest workforce outside United States and within a couple of years the employee’s working in the Dell organization or their call centers in India will reach around 10,000 to 12,000. This is a sure shot boost to the Indian market, which is functioning like a magnet for other global corporations too. Approximately at the end of the financial year 2004-2005 the business process outsourcing sector is expecting a clock sales of $5.7 billion, an overall growth of 44% as compared to last fiscal year.

Dell further added, “I think India represents a great market for us. The business potential is expanding at a very rapid stage and the scale of call centers in India is pretty inspiring.”
The call center offers technical support, customer support services and application development.

Prasad Unawane