Recently we covered India Inc growing twice as fast as Japan Inc where we quoted G.B.Prabhat's writing Across every industry spectrum, there is potential for knowledge work to relocate to India.AMR Research analysts touring in india for the past two weeks find India Inc. is aggressively expanding its higher-value services—proof points exist in business application innovations,product development, and BPO Excerpts:
The overwhelming story is that everyone is growing, and that growth is based on new customers sending work offshore and existing customers sending more work offshore. According to NASSCOM, the IT industry grew 34% last year to $21.5B, which now accounts for 4.1% of India’s Gross Domestic Product (GDP). IT services and software is 60% of the market ($13B), and BPO now accounts for 18% ($4B). Growth is expected to remain above 30% in 2005.Not content to rely on the package of services currently offered to fuel future growth, the Indian outsourcing companies are expanding existing customer relationships by adding higher value services. The examples we have seen span innovative business application development, product engineering, and professional BPO services.Build in India rather than buy a packaged application- Services being offered from India are changing the dynamics of the application build versus buy debate. Several of the companies are investing in building their own Intellectual Property (IP) and creating “frameworks” or “point solutions.” The service provider starts with its prebuilt, domain-specific offering, and then customizes and completes the application as part of a services contract. The customer benefits by getting a better quality system faster than if the service provider started from scratch, and the service provider gets to leverage the IP investment over multiple customers.
India Inc. has grown well beyond its technology-focused roots. The leading services are growing their business domain expertise through hiring, acquisition, and training. Taking advantage of these services requires skills in working with an offshore outsourcing company and an established, trusted relationship with one or more offshore services companies. The leap of faith required to be a leading user of the new services is shrinking, but traditional application development or maintenance projects are still the best way to get started.
Am updating from changi airport - more details later tonight.