When Indian IT majors are struggling in midst of global economic downturn, many global IT and BPM companies are opening their development centers in India. According to latest reports, about half a dozen IT and BPM companies have opened their development centers in Karnataka state alone despite an increase in employee related cost. As per the analysts, the availability of large talent pool with specialized skill sets is what is driving the global BPM companies to open their development centers in India.
The latest company that has been included in the list of opening development center in India is Chinese telecom equipment maker Huawei. Huawei plans to set up a product development center in Bangalore and hire about 4000 Indian talents. Other companies who have opened global development centers in India include e-Bay, Walmart, HP and Nasdaq listed Pegasystems. All these companies plan to hire the highly skilled talent professionals of India and deliver specialized services from their Indian centers. Earlier this year another company named Xchanging, a London Stock Exchange listed IT and BPM Company announced their new development center in Shimoga SEZ and they plan to hire about 3000 professionals by 2013.
So what is attracting these companies to set up their units in India despite an increase in employee salary and other employee related cost? According to the market observers in India, the increasing number of highly specialized skilled workforce who is capable of performing the most complex business processes is what is attracting the global BPM companies to set up their development centers in India. In the opinion of the companies that have opened their development centers in India, no other countries other than India offer such a vast and distinct skill sets that helps them to leverage and gain competitive advantage in the sourcing market. They are of the opinion that the talent available for data analysis, a booming segment and software programming is higher in India when compared to other sourcing destinations like China and Philippines.
Over the years, BPM has grown from providing mere voice services to complex business process management services. Now they act as business partners rather than just third party service provider. Today BPM companies focus on providing more complex processes like regulatory and compliance services, data analytics services for financial sectors etc. This has led to an increasing demand for specialized skilled workforce and India has always been the home for talents who are required to perform such complex business tasks. According to global BPM companies, most of the time, they were not able to find the right talents for such complex processes in their native or nearby geographies except in India.
Latest reports claims that the growing number of specialized skilled talent in the country are also driving MNC R&D companies like Dell, Amazon, Nokia and others to move their R&D centers in tier II cities of the country. The reports reveal that the talent pool in India is growing at a rate of 9% every year and is expected to reach 2, 50,000 by the year 2015. Majority of the R&D works that are undertaken by the tier II cities include testing, support and bug fixing which is of critical importance for a company’s operations.
However, companies also raise concerns over issues like increasing rate of unemployable graduates in the country which requires them to spend millions of dollars to train them. It’s high time that the Indian educational institutions address these issues or else they will find the companies migrating to other destinations in search of right talent.