The last two decades have witnessed an unprecedented flow of services toward Asia. India, in particular, appears to have been the chief beneficiary for qualified services. According to the A.T. Kearney Global Services Location Index, 2011, India ranks highest as offshoring destination. Given the immense poverty of a large percentage of the population, it seems worthwhile to inves-tigate how India managed to become a solicited provider for high-tech services. However, there are alternatives for investment. Other Asian nations court investors with lower prices and an improving quality. Among them is China that attempts to supersede India as most popular service offshoring destination. Where will be the back-office of the future?
Table of Contents
- A) India lures Offshoring Investment
- B) IT Offshoring in India
- I. Recent Developments
- II. Determinants of Success
- 1. Strengths of the Indian IT Offshoring Market
- 2. Weaknesses of the Indian IT Offshoring Market
- III. Alternatives on the Asian Market
- 1. South-East Asian Alternatives
- 2. China as IT offshoring destination
- C) The Trend of India's Competitive Edge
Objectives and Key Themes
This paper examines IT offshoring in India from an investor's perspective. Its objective is to identify the strengths and weaknesses, opportunities and risks associated with outsourcing services and departments to India. The analysis considers the impact of evolving trends like Cloud Computing and rising wages in established IT hubs.
- The competitive advantages and disadvantages of India as an IT offshoring destination.
- The impact of Cloud Computing on the Indian IT offshoring market.
- The influence of rising wages in traditional IT centers like Bangalore.
- Alternative Asian countries for IT offshoring.
- Factors contributing to a successful offshoring strategy in the Asian market.
Chapter Summaries
A) India lures Offshoring Investment: This chapter introduces India's emergence as a leading offshoring destination, particularly for IT services. It highlights three key advantages contributing to India's success: widespread English proficiency, lower average living standards compared to Western nations, and significant improvements in education and professional training. The chapter sets the stage by examining the reasons behind India's attractiveness to foreign investors and raises questions about the sustainability of this trend and the potential for alternative Asian locations.
B) IT Offshoring in India: This chapter delves into the current state of IT offshoring in India, focusing on two significant trends: the rise of Cloud Computing and the increase in average wages in established IT centers like Bangalore. The chapter explores the implications of Cloud Computing for the Indian IT industry, highlighting its potential to reshape business models and drive cost-effectiveness. It also discusses the challenge posed by rising wages in Bangalore, which diminishes India's cost advantage, and the subsequent shift towards alternative locations within India, such as Chennai and Hyderabad. The chapter concludes by emphasizing the importance of examining both strengths and weaknesses of the Indian IT offshoring market in order to make informed investment decisions.
Keywords
IT Offshoring, India, Cloud Computing, Outsourcing, Investment, Competitive Advantage, Bangalore, Wages, Asian Market, Strengths, Weaknesses, Success Factors.
Frequently Asked Questions: India's IT Offshoring Market
What is the main topic of this document?
This document provides a comprehensive overview of IT offshoring in India, analyzing its strengths and weaknesses as an investment destination. It examines the impact of factors like Cloud Computing and rising wages, and explores alternative Asian locations for IT offshoring.
What are the key themes explored in this document?
The key themes include India's competitive advantages and disadvantages in IT offshoring, the influence of Cloud Computing, the impact of rising wages in established IT hubs, alternative Asian countries for offshoring, and factors contributing to successful offshoring strategies.
What are the key advantages of India as an IT offshoring destination?
India's attractiveness stems from widespread English proficiency, lower average living standards compared to Western nations, and significant improvements in education and professional training.
What are some of the challenges facing India's IT offshoring market?
Rising wages in established IT centers like Bangalore are diminishing India's cost advantage. The document also explores the need to consider both the strengths and weaknesses of the market for informed investment decisions.
How does Cloud Computing impact the Indian IT offshoring market?
Cloud Computing has the potential to reshape business models and drive cost-effectiveness in the Indian IT industry. The document explores its implications for the industry.
What are some alternative Asian countries for IT offshoring considered in this document?
The document mentions South-East Asian countries and China as potential alternatives to India for IT offshoring.
What factors contribute to a successful offshoring strategy in the Asian market?
The document emphasizes the importance of a thorough analysis of both the strengths and weaknesses of potential locations, considering factors such as wages, infrastructure, and skilled workforce availability.
What is the structure of the document?
The document includes a table of contents, objectives and key themes, chapter summaries (covering India's attraction to offshoring investment and the specifics of IT offshoring in India), and keywords.
Who is the intended audience of this document?
The intended audience is investors considering IT offshoring to India or other Asian locations. The analysis is presented from an investor's perspective.
Where can I find more information on the specific chapters?
The document provides detailed summaries of each chapter, outlining the key points and findings discussed within each section.
- Arbeit zitieren
- Daniel Müller (Autor:in), 2011, IT Offshoring in India, München, GRIN Verlag, https://www.grin.com/document/179553
