Posted on 08/10/2003 1:12:32 AM PDT by sarcasm
Despite shrinking IT spend caused by the economic slowdown, Indian software and services export industry grew 26.3% last fiscal generating revenues of Rs 46,100 crore ($9.5 billion). Of this, the promising BPO segment earned Rs 11,300 crore ($2.3 billion), with the balance Rs 34,800 crore ($7.2 billion) coming from IT services, products and technology services.
Nasscom, the trade body representing software and service firms expects the momentum to continue and predicts the industry to earn $50 billion and create 1.1 million jobs by 2008. With outsourcing going mainstream and Indian cost and quality advantage gaining ground, the road ahead looks promising for the software export industry.
A Gartner report in August 2002 says that 79 percent of large US corporations are currently engaged in offshore outsourcing while the remaining 21 percent plan to do so soon. The report says surveyed US corporations ranked India as the primary country for supplying offshore IT services.
High quality delivery capabilities, significant cost benefits and abundant skilled resources are the pushing foreign clients to shift their software development and BPO needs to India.
While the outlook is bright, there are numerous challenges the software and BPO industry need to battle to retain this pre-eminent position. On the external front, prime issues are stringent visa regulations, preventing easy moment of Indian IT professionals to overseas clients premises and laws restricting outsourcing -such as the recent one in which five US states together are pushing for ban on government agencies moving back office and IT solutions work to companies outside the country.
Additionally, software and service exporters have to face the threat of increased competition from emerging outsourcing destinations like Philippines and China and big global IT consultants and service brands like IBM, Accenture and EDS, who are enhancing their India presence to push down rates.
The need to move up the value chain to provide end-to-end solutions for customers.
Tackling human resource related issues like employee attraction and retention and high wage cost are some of the internal challenges confronting the IT services export industry.
In a nation which refuses to defend itself from the government subsidized mercantilism of other nations, the consumer becomes unemployed/underemployed/underpaid, and single-purchase trinkets offered at low, low costs are hardly compensation when keeping a roof over one's family's head remains so expensive and the need so persistant.
Then why are you arguing fior Indian and Chinese government interference in the American markets?
You seem to have the notion that you are ENTITLED to not have to compete with foreigners for your job. Is this true?<
Foreign nationals are not entitled to access to American Markets. Look up sovreignity in the dictionary. The USA is a sovereign nation and we have international interests and national security concerns we asa nation have a right to impose restrictions on foreign trade as is appropriate. I believe in free market within the USA unencimbered within the USA by government interference. Not just interference of the government of the USA but free from interference of the WTO, European nations and China and India with their high tariffs and manipulated currencies. You say you like free markets but you argue for sociailist policies. My test question regards should airbus industries be able to sell planes in the USA without havibng tariffs in place to eliminate the government subsidy for these aircraft. The European government subsidy directly hurts American producers of aircraft.
The government needs to tell private industries that, while they may outsource as the please, they should not expect U.S. taxpayer financed military protection upon doing so, and no taxpaer backed bailouts insurance-wise.
You're either on your own, or your not. You're either an American company or you're not. You're either with us, or against us.
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