Monthly archives: December 2003

In what could hit Microsoft’s interest in Indian market, the government owned non-formal software education outfit DOEACC has silently modified its syllabus dropping subjects on Microsoft technologies and increasing focus on open operating systems such as Linux

Here on the said page you would a good summarize report of what does outsourcing do for America and India. What are the benefits for both of them. This is specially for all those who think that these contracted nations are just scavengers and having a party exploiting rich nations.

NASSCOM – Outsourcing: “The perceived notions about outsourcing need to be addressed placing the facts and figures in perspective – to ensure that this healthy trend grows and flourishes

Outsourcing a part of the main business to outside vendors has been an acceptable and popular business strategy of global corporations for years. The trend has recently caught the attention of the worldwide community and become the latest buzzword doing the rounds of US media, industry and political circles due to the depressed economies world over. Recent studies on the benefits of IT outsourcing by business intelligence organizations such as McKinsey & Co. and other leading research companies have indicated the following:

The ITES/BPO market is likely to touch US$142 billion in 2009, against the current cost of US$532 billion for these services. The difference of US$ 390 billion represents the net saving the US economy can expect from offshoring

Such savings have a huge economic impact on dollar savings, leading to value creation for shareholders and the common man

US banks, financial services and insurance companies have saved US$6-8 billion in the past four years owing to IT outsourcing to India

Helped by these savings, companies have prevented layoffs and instead added 125,000 more jobs

Offshoring to India has resulted in quality and productivity gains of the order of 15-20 percent

US BFSI sector has managed to register customer satisfaction of almost 85% due to Offshoring to India vis-a-vis their European competitors “……………………………………….

Forbes recognises India’s IT prowess, puts face to it : HindustanTimes.com: “Kiran Karnik, the president of the National Association of Software and Service Companies (Nasscom), is Forbes’ Face of the Year 2003. If Nasscom is the self-proclaimed voice of India’s IT industry, Karnik is “the man trying to direct the path of the offshoring tsunami”, says America’s premier business magazine.”

In additions :- Forbes puts it: “Despite concerns in the US about unemployment and lost innovation, there is no turning back. The pressure on US companies to cut costs and compete globally is too compelling.”

Forbes acknowledges India’s strong credentials, pointedly referring to its annual crop of 75,000 IT graduates. Little wonder, IT now accounts for 3 per cent of India’s GDP, or $16.5 billion, up from just $1.7 billion nine years ago. And the big driver in all this is exports of software and services to the US.

Forbes says under Karnik Nasscom has been true to its charter of promoting India’s technology strength to the world and fostering a business-friendly environment for companies setting up shop in India. Over the past few years, many crucial white-collar tech jobs such as application development, database design, integration and services have moved to India.

AOL is coming to India in search of talent and cost effectiveness.

InfoWorld: AOL plans to hire developers in India

Daily Herald: “The Internet is far from being a useful tool globally ”

Internet is a great tool used globally, but is it useful as a local tool. How well connected you find yourself locally other than mails. The Internet is mostly english and the content is more available for the developed nations, for developing nations you really need to drill down the internet because any useful information you find is in tits and bits and that also replicated on 1000s of pages. There has to be abundance of ‘local’ and ‘intelligent’ information availability which can ‘really serve’ the locals. Something like Ryze, which again is english speaking but is targetting the right audience, but what if there is RYZE-like thing for rest of the Indians in their local language. We may say why any villager or non-english-speaking would get ‘connected’, but why won’t he get ‘connected’ if there is somethting ‘in it – for him’. Ofourse the localized net doesn’t mean ‘content and news and blah blah blah’, localization means – the ability of the localite to do something useful with the internet.

VCs now turn to Bollywood – The Economic Times: “VCs now turn to Bollywood” —- It’s Different

Eight budding young scientists will represent India at the Intel International Science Engineering Fair (Intel ISEF) to be held at Portland, Oregon in the US during May 9-15 next year.

For the first time ever, an Indian city will be featured on TV5’s 24 Hrs. TV5, the only worldwide public French speaking television channel which profiles four prominents cities of the world every year by telecasting a 24 hours special on the channel. 24 Hrs… has chosen Mumbai to be featured on its most widely watched special series across the USA, UK, Africa, and Asia.

The debate will again start since many agencies will grow up the value chain.

ITworld.com – Outsourcing debate to rage again in 2004:

What appears perhaps most threatening to the Western IT worker in the long term are efforts on the part of more experienced outsourcers to move up the labor chain, from basic programming jobs to high-end design and project management work.”

In the U.S. alone, the value of IT services provided by offshore labor will double to US$16 billion next year and triple again to $46 billion by 2007, according to market research company IDC, in Framingham, Massachusetts.

Americans swallow layoffs, but can’t digest outsourcing – The Economic Times