SWOT analysis on Indian ITES sector

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




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