Sunday, December 19, 2004

Domestic Outsourcing Boom in India

Express India reports India based IT outsourcing service providers are now scrambling to provide for the 3.5 million small and medium sized businesses (SMB) scattered throughout India.

“Outsourcing has traditionally been the preserve of large enterprises and the government, but now SMB-level organisations are looking at outsourcing, simply because the cost differentiation between doing the work in-house and outsourcing can be huge,” says a senior official of Hyderabad-based Satyam Computer.

“This appears to be an extension of the domestic outsourcing trend. Competitive pressures and cost pressures are compelling SMBs to focus on their core competencies and look for external help in non-critical business areas, in this case IT operations,” says Nasscom. Outsourcing of non-production-related IT applications enables a company to not only focus on its main business activity but also achieve cost-savings on IT initiatives to the tune of 30%.

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