This leading position of India has mainly been attributed to large enterprises. However, there is a good business happening from small and medium enterprises (SME) also. The SME segment has been traditionally hesitant to enter in to full scale offshoring of services for fear of getting trapped in unknown risks in an offshore geography. Whereas large enterprise have been hooked to captive offshoring for long, the SME segment has been largely using offshore outsourcing.
Take any big name like IBM, Accenture, Logica, Serco, Siemens, Microsoft they have all over years increased their investment in India. They have utilized India for achieving economies of scale and combined the offshore with onsite for their global profitability. There are hundreds of medium size companies from US and Europe operating captive offshore center or outsourcing to the third party Indian service providers. The list is very long and for those interested can cross check from NASSCOM or write to the author at email address given below.
Having attained this enviable position India offers a safe destination of offshoring for Small and Medium businesses. Following factor have contributed to this position of India.
- Talent Pool with skills sets in all areas
- Cost Structure
- An improved Infrastructure
- A congenial business environment
- A politically stability with democratic values
- An edge over other as far as English speaking manpower is concerned
- Quality has won this place for India
- Maturity of Industry
Quality, maturity of industry and a talented management workforce are most important factor that forms the current strength and also the driver for future growth for Indian offshoring industry.
It is these three factors that make India a very attractive, least risky destination for small and medium businesses offering assured return on investment. The maturity of industry in India is the biggest risk mitigating factor that can be relied by SME businessmen.
Not only SME size businesses can choose to offshore their IT, or a business processes to a third party after a due diligence through a credible source like Induri.com but they can also establish a managed offshore center with a dedicated team.
“Managed offshoring”, offers a very attractive long term and best cost-benefit proposition for SME segment. In Managed offshoring, a service provider like Induri.com with experience in managing offshoring sets-up the facility, a dedicated team and offers management of offshore center that is run dedicated for a client. Managed offshoring is a smart offshoring method.
Those looking for bigger teams and higher value gains can also set up captive centers, with help of consultants.
For short term needs or projects of specialized nature, there are thousands of third party providers and a large number of them operating in niche areas like product development or in an industry vertical.
The failures in offshoring or outsourcing can be seen to be originating from mostly from undue reliance or undue expectation from technical team with out giving due importance to management of offshoring. Hence, engaging an expert offshoring consulting organization will always be of use as the success of offshoring lies more in management issues rather than in technology or technology teams.
If right steps are followed in adopting offshoring to India, the success is assured for an SME organization. Small and medium businesses should therefore utilize this position of Indian IT Industry, by setting up managed offshore centers.