India stands tall today among global contemporaries in the software market, it’s name having become synonymous with expertise in this discipline. Currently India occupies the premier position in offshore work. Perhaps, somewhat uniquely, India has made outsourcing a brand in it's own way.

Not only has there been an exponential growth, but the outsourcing industry has also moved up the value chain. India ’s software saga, which began with staffing, moved its way up to software development, then integration, and now centres around top-of-the-line business consulting projects.

There are various factors which contribute to India being the number one destination for outsourcing. They are listed below.

ADVANTAGES OFFERED BY INDIA

Education : India has one of the most developed educational systems in the world. Together, Indian universities produce a large amount of highly skilled technical manpower suitable for the outsourcing needs of Western companies. Currently labour arbitrage is a major driver for the Indian supremacy in outsourcing. This lower cost of labour is extremely beneficial to Western companies. The fact that English is the main commercial language in India makes it also very easy for Western companies to do business with India .

Infrastructure: India has the technology for successful offshore outsourcing. Currently the country is undergoing a massive infrastructure revamp to gear itself up for the ever increasing outsourcing demand. Office buildings in the high tech zones have reached or even surpassed global standards. The government has strengthened telecom infrastructure and built fiber-optic networks in city centers of software activity, as well as provided uninterrupted power supply.

Emphasis on Quality: Indian service providers offer high quality standards. 50 out of 74 CMM-level 5 companies in the world are Indian.

Government Support: The Indian government has realised that offshore outsourcing is a major economic driver. For this reason, the government is offering a comprehensive package of tax incentives such as a 10 year tax holiday for IT service exporters and is backing telecom deregulation to support the growth of this sector.

Service Providers: Service Providers such has TCS, Wipro, Satyam are at par with global giants like Cap Gemini, CMG, Atos Origin. They all have crystallized growth plans which have adequate room for extraordinary margins, cash flows and market capitalisation.

MAJOR PROVIDERS AND CUSTOMERS

250 out of the Fortune 1000 companies are outsourcing to India at the moment. These include global giants like Pepsi, Boeing, GE, Accenture, IBM, Microsoft to name a few. A lot of these giants have their own set-ups in India in the form of joint ventures or fully owned subsidiaries.

The major providers catering to these global giants are TCS, Satyam, Wipro, Infosys, HCL. There are also many upcoming medium providers who deliver work par excellence.

DUTCH OUTSOURCING SEGMENT TO INDIA

More than 60% of India 's software export goes to the United States . Only 20 % of it comes to Germany and the UK within Europe . The Netherlands has not really been exposed to the India factor and less than 1% of India 's software export reaches the Netherlands . The big players in the Dutch market such as KLM, CMG, Atos Origin, Baan, Philips, Shell, Unilever, Pink Roccade, Getronics, ING are active players in the outsourcing segment in India . The small and medium players are gradually making the step to India .

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