Presentation is loading. Please wait.

Presentation is loading. Please wait.

Geo-political, Economic, and Human Factors Domestic Policy on Information Technology / Outsourcing: Legislative power vested in Parliament consisting.

Similar presentations


Presentation on theme: "Geo-political, Economic, and Human Factors Domestic Policy on Information Technology / Outsourcing: Legislative power vested in Parliament consisting."— Presentation transcript:

1

2 Geo-political, Economic, and Human Factors Domestic Policy on Information Technology / Outsourcing: Legislative power vested in Parliament consisting of President and two legislative bodies ■ Council of States: 245 members (six year terms) ■ House of the People: 550 members (two year terms) Domestic Policy on Information Technology / Outsourcing: For fiscal year 2010: measure extended to exempt IT-BPO (information technology and business process outsourcing) firms from paying taxes on their profit from export of software and services Economy of India ■ Gross National Income (GNI): $1.07 trillion Equivalent to $950 per head ■ Gross Domestic Product (GDP) Increased by an average of 6.1%, per head, per year ■ Trade Deficit (projected 2009): $28.7 billion Equivalent to 3.5% of GDP ■ Inflation, average annual rate (2008): 8.7%

3 Geo-political, Economic, and Human Factors Human Factors Population: ■ The world’s second most populous country: 1,028,610,328 ■ Population density is 325 persons per sq km. Language: ■ Official language is Hindi - spoken by about 30% of the population. ■ English is used as an associate language for many official purposes. Education Enrollment: ■ The world’s second most populous country: 1,028,610,328 ■ Primary school enrollment: 88.7% of pupils in the relevant age-group ■ Secondary school enrollment: 54.6% of pupils in the relevant age-group ■ Collegiate universities enrollment: 10.0% of students in the relevant age-group Education Funding: ■ Budgetary expenditure on education and literacy for 2008-09 was forecast at US$5,570 million, equivalent to 3.7% of total spending.

4 Vendor Capabilities ■ IT-BPO or IT/ITES (IT Enabled Services) industry came into existence roughly 2 decades ago. ■ As of end 2007: contributed to roughly 5.2% of India’s GDP. Industry revenues (2008): 64 billion. ■ Direct employment expected to reach 2.23 million and indirect employment approx 8 million by the end of 2009. ■ Industry matured considerably over the last decade. ■ Expansion of services from basic transaction-based services to more complex research and analysis-based services requiring knowledge of various verticals/domains. ■ Focus shifting from being a provider of purely low cost services to high quality at a competitive price. ■ Increased geographical penetration of services to countries apart from the U.S.

5 Number of vendors: the current NASSCOM membership base has over 1200 companies that include Indian as well as multinational companies (such as IBM, HP) that have a presence in India. Top 5 vendors: ■ Tata Consultancy Services Ltd: Revenues (2008): US$5.7 billion; No of employees: 108,800 ■ Infosys Technologies Ltd: Revenues (2008): US$4.2 billion; No of employees: 91,217 ■ Wipro Technologies Ltd: Revenues (2008): US$2.9 billion ■ Mahindra Saytam (formerly Satyam Computer Services Ltd): Revenues (March 2008): US$2.1 billion; No of employees: 50,570 ■ HCL Technologies Ltd: Revenues 2008: US$1.9 billion; No of employees: 52,714 Others Important vendors: ■ Mindtree, Polaris Software Laboratories, Patni Computers, I-Flex Solutions Vendor Capabilities

6 Risk: Business interruption due to terrorism, military dispute, or Acts of God Mitigation: Anticipate delayed business operations and staffing shortages Increase physical security measures in areas / times of high risk Develop emergency contingency plans Risk: Corruption within the local business and political communities Mitigation: Seek local legal advice to identify common forms of local bribery Determine legitimate payments and refuse illicit bribe requests Risk: Bureaucratic delays and governmental confusion Mitigation: Develop contracts with clarity and precision Ensure familiarity with required regulations at all levels of government Risk: Power shortages and electric outages Mitigation: Anticipate delayed business operations Provide back-up generating power if acquiring physical space Risks and Mitigation

7 Risk: Security Risks due to contractor access to private and/or secure data Mitigation: Share only the minimum amount of data necessary for the contractor to perform the contracted services Develop best practices for security with the contracting firm, including: ■ Data protection policies and requirements in the contract; review with the contractor ■ Frequently review where data are and all parties that have access to data ■ Identify new vulnerabilities and risks ■ Review and audit the contractor's security practices and handling of data ■ Require security reports from the contractor ■ Request employee security training from the contractor, where possible Risk: Outsourcing contractor is not familiar with the industry or business operations being outsourced Example : A noted American telecom firm outsourced a software coding project to an Indian-based contractor. ■ The contractor had no experience with the American telecom industry ■ Contractor did not know how to code the required software applications ■ Project languished and had to be finished in-house Risks and Mitigation

8 Benefits of Outsourcing to this Location Favorable Economic and Political Environment for IT outsourcing in India For over a decade India has been at the forefront of the IT outsourcing movement, with nearly 60% of that activity coming directly from the US. India exhibits a high level of cooperation between the private and public sector in setting pro-IT policies: ■ Software Technology Parks of India (STPI) (government) ■ National Association of Software and Services Companies (NASSCOM)

9 Benefits of Outsourcing to this Location Human benefits of outsourcing to India English is the recognized business language, with over 250 million English speakers in the country Virtually Unlimited talent pool India adds 3.5 million grads and post grads to the talent pool annually allowing for almost unlimited expansion capability. India offers significant labor cost savings

10 Thank You


Download ppt "Geo-political, Economic, and Human Factors Domestic Policy on Information Technology / Outsourcing: Legislative power vested in Parliament consisting."

Similar presentations


Ads by Google