The role of India in outsourcing

A recent international research proved india as a top outsourcing leader and it shares the credit with other countries like bangladesh. India, have been earning hefty amounts annually through IT outsourcing because of their proficiency in English language, better infrastructure and IP protection. In India, an estimated 700,000 people are employed in the outsourcing sector helping their country fetch revenues worth $11 billion a year. The countries that are reaping benefit out of the ever-expanding IT outsourcing businesses have enough and easily available qualified and technically skilled English-speaking computer professionals and reliable communication infrastructures including satellite and submarine communication links. In view of high costs at home, most business firms, including large multinationals and chain stores, save their costs significantly by IT outsourcing to India, China or Sri Lanka.

But in recent years, IT outsourcing industry costs have been on the rise in these countries because of the mismatch between work orders and available skilled manpower. Bangladesh that earned a paltry $35 million last fiscal through software exports could have cashed in on the cost escalation in the IT outsourcing forerunners if it had substantial number of adequately qualified English-speaking computer professionals and better infrastructures.

                                       

Side by side with efforts to meet the demand for skilled manpower and infrastructure, it is essential for the government to extend all possible policy supports to IT firms engaged in outsourcing. Successive governments in recent years have been IT-growth friendly. Yet a lot remains to be accomplished if the policymakers are truly serious about making the best use of recognition provided by the Gartner. Private universities and institutes are churning out a large number of IT graduates and diploma-holders every year. But the deficiency in communication in English language remains a major barrier. The telecommunication infrastructures are yet to be adequate enough to support a major thrust on IT outsourcing. So, there should be no reason to feel elated by the Gartner ranking of the country.