“Food, Cloth and Shelter and Bandwidth”
Dewang Mehta, Nasscom President (1991-2001) changed India’s customary slogan of the three basic needs, marking India’s growing prowess in the IT-BPM outsourcing Industry.
A country not known for its tech expertise on the global map became the number 1 outsourcer of IT and BPM needs and has retained the position since past 5 years. How did it happen at all? Let’s take a look!
It was in 1989, when Jack Welch (Chief Executive, G.E.) visited India to strike a deal for General Electric’s aircraft engines with India.
In response, Sam Pitroda, the then Technology Adviser to PM, Rajiv Gandhi, demaded for $10 million worth of IT work to be outsourced to India, for this deal to get through.
Both the parties agreed and G.E. became the first company to outsource software work to India.
With the formation of Nasscom and visionary leaders like Kiran Karnik and Dewang Mehta, India had set off on a thrilling journey to revolutionize it’s internal technological architecture as well as the world’s.
The potential of IT outsourcing business was realized by top Indian IT service providers as they joined in the league to increase the market size by billions.
India’s IT, BPM and Software Engineering outsourcing skyrocketed from $44.5 billion in 2009 to $107.8 billion in 2016.
IT and Software Industry is India’s 5th largest Industry contributing an average of 7.5% to the country’s GDP over the past 9 years.
Delhi, Bengaluru and Mumbai and Chennai are among the top 10 IT outsourcing cities of the world.
Why the World Outsources to India?
There are a number of reasons, why India becomes the first choice to outsource technology needs for developed Countries like USA and UK.
Attractive Work Hour Rates
The dollar to rupee ratio has been a significant factor in prompting Indian IT companies to outsource. For a local software engineer in USA, an Indian engineer can carry out the same work in half the time and price, with double the assured quality. There is no reason for why a company in USA would want to ignore that fact.
Even on the Enterprise level, India’s solutions power the world’s biggest tech ventures. This is due to the high amount of contrast in the cost-effectiveness that India offers. On an average, outsourcing to India decreases the cost to a minimum 30% than to any other part of the world.
Mega Store House of IT Talent
The technology boom of India that took place between 2010 and 2016, when India’s global IT exports crossed the $100 billion mark for the first time, the number of quality software engineers also grew proportionately.
There are millions of qualified Software Engineers and IT Specialists in India that compare to the total population of many developed countries. People in India recognized the scope that software Industry offered and a huge number of students opted the technical streams as their majors.
Although, the trend is at the point of saturation but the legacy has been created and India continues to dominate the global industry by great margins.
Prime Focus on Quality
India, soon in its IT outsourcing career, realized that the key was quality. In a survey, 80% of European and American firms vouched that they were most happy to outsource their IT needs to India.
This resulted in growth of foreign companies who wanted to partner up with India to meet their technology needs and in cases, the whole IT departments were outsourced to India. Simply because the level of quality and price was not available locally.
The Inception of Dikonia – Upcoming Top IT Company in India
Dikonia came into existence in 2013, as a IT services provider in the domains of web software development. Founded by Chhavi Firani, the company has developed key software solutions for clients spread across the globe in USA, Australia, Philippines, UK, Canada and Europe.
In the past five years of its working tenure, Dikonia has grown alongside India. The strategies, the projects and the work culture quite literally reflects how India has progresses all along the years to become the world number one.
Rather than running before numbers, Dikonia has been built on the morals of providing IT services with utmost care. Of the 60 odd projects that we have completed in past 5 years, we were able to generate a great deal of client satisfaction. The same can be verified from our profile on Clutch.
The Slowdown and Future
The current Indian IT outsourcing landscape is not as thriving as it was in 2016. There have been major setbacks due to changes in policies in America and Europe.
The election of Donald J. Trump as the president of USA and Brexit has been two major factors in the reduction of IT outsourcing to India. The protectionist president is taking all the measures to preserve the IT jobs of native populations while UK is also slowly cutting off IT outsourcing channels to India.
The major setback came with Royal Bank of Scotland denying a major contract to Infosys, leading to a loss of 3000 employees in India. The same is being experienced by TCS, Cognizant and Wipro, who all have are struggling with their growth rates.
Major reforms are called for Indian IT scenario where the shift will take place from conventional services to emerging technologies such as Data Analytics and Artificial Intelligence.