Transcript Website Development
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Advantage India
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BPO &
… Highly skilled, English-speaking workforce. Cheaper workforce than their Western counterparts. According to Nasscom, The wage difference is as high as 70-80 percent when compared to their Western counterparts. The cost of telecom and network infrastructure getting equivalent to rest of the world.
Dedicated workforce aiming at making a long-term career in the field. Round-the-clock advantage for Western companies due to the huge time difference. Lower response time with efficient and effective service. Developed legal system.
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Economic
… The economy is expected to grow by 6.75 - 7 % during 2005-06 and inflation is likely to be around 5-5.5 %.
Agriculture to grow by 3.5 %, industry by 7 and services by 8.5 % next fiscal…Crisil.
India has one of the largest Telecom Networks in Asia with approx. 1,23,000 route kilometers of optic fibre cable network.
Forex Reserves are as high as $120billion, Exports are rising @ 20%, Industrial Production is rising @7-8% India ranked 10th among 29 emerging markets in the latest country…
Economic Intelligence Unit (EIU)
Full signatory to WTO and committed to integrate completely with the world market by year 2005.
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competition
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lagging behind
Country
Philippines Canada, Australia South Africa China Russia Czech Rep, Hungary Mexico
USP
Understands the US market; voice work; low attrition Understands the US market; high end skills Time zone similar to Europe; 25% cost saving, good for niche work Low costs Technology skills European language skills Immediate neighbor of US, 30% cheaper than US; Spanish skills
Limitation
More expensive than India; small talent pool High costs Skill shortage Quality of English not good Poor infrastructure; corruption; language Small talent pool; high costs Good only for low-end jobs
India – Land of Opportunities
Fourth largest Economy (PPP) - A safe place to do business Largest reservoir of skilled/semi skilled manpower Long-term sustainable Competitive advantage - High growth rate economy Second Largest Emerging Market Largest democracy – political stability & consensus on reforms Liberal & transparent investment policies Highest returns on investment; India 19.33%, China 14.25%, Thailand 13.3%
Infrastructure Development
US$ 12 billion Highways Development Programme; • Over 13,000 Kms of Highways being developed.
US$ 22 billion ‘Sagar Mala’ programme to develop ports and shipping sector Modernization of Airports at New Delhi & Mumbai.
World’s Fastest growing telecom market with unified licensing regime and world class international and domestic connectivity; The Electricity Act, 2003 enables captive generation and trading in electricity;
Brand India
R&D base for 100 of Fortune 500 companies; GE’s largest R&D Center outside US; Large pool of World class scientific and technical manpower; Indian Institutes of Technology; Indian Institutes of Management.
S&T policy aims at R&D investments of 2% of GDP by 2007 Among the only three Asian countries with super computing competence Strong base for manufacturing; Bharat Forge world’s largest forging facility Most major MNC’s like Volvo,GM,GE, Chrysler, Ford,Toyota, Unilever, Cliariant, Cummins, Delphi sourcing high quality components and hardware from India Hyundai Motors India – Global base for manufacturing small cars; Indica(100% indigenous car) being exported to Europe as Rover City.
Hero Honda world’s largest manufacturer of motorbikes Precision Automation & Robotics India (PARI) - 20 Fortune 500 clients
Competitive Entrepreneurship
Prevalence of foreign technology licensing – Rank 1 Availability of scientist and engineers – Rank 2 Quality of management schools – Rank 9 Firm level innovation Firm level technology absorption – Rank 12 – Rank 16
(Source: Global Competitiveness Report, 2002-03)
India amongst the leading entrepreneurial hotbeds globally (Red Herring Clubs India with Israel)
India: FDI Outlook
Rated as the best BPO destination; AT KEARNEY Best technology licensing regime - UNCTAD’s Global Competitiveness Report, 2003; Rated among the most favourite investment destinations (UNCTAD, JETRO, JBIC, Deutsche Bank, EIU, etc.) Major destination for foreign venture capital funds (Far Eastern Economic Review) Sixth most attractive investment destination – ATKEARNEY Business Confidence Index, 2003 Also among the top 10 Tourist Destinations.
Skilled knowledge Workforce
India’s competitive edge is its manpower Over 380 universities (11200 colleges) 1500 research institutions Over 200,000 engineering graduates Over 300,000 post graduates from non-engineering colleges 2,100,000 other graduates Around 9,000 PhDs Knowledge workers in software and service industry increased from 6,800 in 1985-86 to 650,000 in 2003
Global Business Leaders - Bullish On India
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s Potential
“ India is a developed country as far as intellectual capital is concerned ” “ We are expanding our presence in India to take advantage of the ample R&D talent available ”
JACK WELCH, GE
“ India can be a major part of Dell ’ s operations and we are looking to capitalize on India ’ s human capital ”
MICHAEL DELL, DELL JOHN CHAMBERS, CISCO
“ India is handling the most sophisticated projects in the world..I am impressed with the quality of work ”
BILL GATES, MICROSOFT
Third Party Service Providers (TPSPs)
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Benefits
Expertise and experience with other clients in similar business lines. Very competitive pricing No infrastructural / capital investment. Payback period very less (usually between 6 months to a year). Flexibility to scale up and down business relationship. Retains decision-making, therefore relationship with TPSP is clear (fee-based, quality-based); no staff backlash. As TPSP works towards a profit there is more business commitment. Customized solutions ensure data security and safety.
What Virtualsource brings to the Table
Virtualsource
Experience of delivering back office services to global majors Understanding of successful JVs with global majors Scalable Existing Infrastructure Management Band width Strong Balance Sheet and willingness and ability to infuse further Capital to scale up to 1200 seats