SWOT analysis on Indian ITES sector

Strengths

  • Highly skilled, English-speaking workforce.
  • Abundant manpower
  • 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.
  • Lower attrition rates than in the West.
  • 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.
  • Operational excellence
  • Conducive business environment

Weaknesses

  • Recent months have seen a rise in the level of attrition rates among ITES workers who are quitting their jobs to pursue higher studies. Of late workers have shown a tendency not to pursue ITES as a full-time career.
  • The cost of telecom and network infrastructure is much higher in India than in the US.
  • Manpower shortage
  • Local infrastructure
  • Political opposition from developed countries

Opportunities

  • To work closely with associations like Nasscom to portray India as the most favoured ITES destination in the world.
  • Indian ITES companies should work closely with Western governments and assuage their concerns and issues.
  • India can be branded as a quality ITES destination rather than a low-cost destination.
  • $69 billion ITES business by 2010
  • $97.5 billion IT (consulting, software solutions) market by 2010

Threats

  • The anti-outsourcing legislation in the US state of New Jersey. Three more states in the United States are planning legislation against outsourcing Connecticut, Missouri and Wisconsin.
  • Workers in British Telecom have protested against outsourcing of work to Indian BPO companies.
  • Other ITES destinations such as China, Philippines and South Africa could have an edge on the cost factor.
  • Slowdown of demand

 




Latest Columns

March 2006 News

March 2006 Nasscom, Dutch agency sign outsourcing pact IT association Nasscom in collaboration with Dutch Centre for the Promotion of Imports from Developing Countries (CBI) on Thursday announced an export development programme, that would enable small and medium enterprises (SMEs) in the European Union to outsource business process outsourcing (BPO) opportunities to India.”The two organisations […]

What is vertical BPO?

What is vertical BPO? Is this the next big thing to hit the BPM industry? Well, many are likely to think so since this has led to setting new frontiers in the field of outsourcing. In BPO, horizontal services are function specific that are scattered over different sectors of the BPM industry. These include services […]

Speak Your Mind

*