IT Companies in India showering jobs overseas
With a dollop of IT companies in India being the best recruiters offering jobs to thousands of professionals are now more interested in offering overseas job opportunities. The main motive behind this is the shortage of skills and in turn better productivity.
The Indian companies have been either operating globally to offer the vast array of employment services or are hiring foreign nationals to make up for the loss of talent in order to perform better. Supplemental hiring has become a common phenomenon for the Indian IT industry these days.
There are two reasons, one of which states the need for having the best brains which would most likely contribute towards the maximum productivity, and another which is attributed to a customer who gets drawn towards organizations with employees of their culture, religion, tastes and preferences etc.
One important example of Indian IT industry which has offered huge jobs to foreign nationals is Infosys.
Another reason because of which Indian IT companies hire experts from abroad is the emphasis on training and development of the employees belonging to the origin. When a knowledge expert is hired, he brings a lot of talent which gets imbibed in other employees. It can also be the other way round where the Indian IT company has established itself in a foreign land, learnt the technology and brought back this technology to reap profits back home and also to train the Indian employees.
Another important observation which could be made in the last few years is the Indian IT companies having their base abroad employed foreign nationals and they did so because it was difficult for the Indian employees to get green card and so stay for long.
The DQ List of Top 20 IT companies
In the Dataquest listing of the Top 20 IT companies from India, the top seven positions remained unchanged, with TCS, Wipro, Infosys, HP India, IBM India, Ingram Micro and Satyam Computer Services retaining their positions, from No 1 through 7. (HP India and Ingram Micro derive a major part of their revenues from the sale of computer systems and peripherals, while the others make money from exports of software services; IBM India has significant services--domestic and exports--revenue, as well as systems sales.) Unlike the previous year, there was no major change in the rankings in the top 14 positions with no company moving up or down by more than two places.
The DQ Top 20 Club — the ranking of top IT companies in India by revenue — also saw changes, with three new companies — two of them doing business primarily in Indian domestic market — entering the list, while three exports-led firms made their exit. Interestingly, all the three new entrants are non-Indian firms — Accenture, SAP and Dell — which replaced three Indian firms, Teledata, Patni and Moser Baer, that ranks amongst the Top 10 CD makers in the world.
The most spectacular story is the entry of Accenture India at No 15 (the company was not tracked by the Dataquest study in previous years, even though it was operating in India its development centre for nearly a decade) and SAP India, which rose six positions to be a No 18, driven by a strong performance in the small and medium enterprise (SME) market, that helped it record 84% growth.
The Top Outsourcing IT companies in India
The concept of outsourcing having acquired the corporate look in the year 1980 orchestrates the borrowing of services from the supplier under a contractual agreement and this phenomenon usually includes the non-core operations for the outsourcing clients.The outsourcer benefits by utilizing the outsourced services at a much lower costs than incurred by the firm’s own conduct of operations or services and redirecting its energy towards firm’s other businesses to capture the product market. The Indian IT companies have emerged as the hot IT outsourcing destination especially for the countries like U.K. and U.S. India having a huge knowledge base coupled with low costs of labour enticed the offshore companies.
The Indian outsourcing companies who have surfaced in the list of top ten globally have been operating on well-defined business models and by clearly strategizing their services. The Indian companies who have figured in the top ten on the global level include Wipro, Infosys and Tech Mahindra.. Although, IBM was the first to be listed according to the data released by IOAP, (International Association of Outsourcing Professionals) IBM has been recognized on the basis of its size and growth. Among the Indian companies, Wipro has occupied a Sixth position based on the attribute of company’s balanced strength, while Infosys could grab the seventh position by displaying customer testimonials. But listing only the top ten Indian companies will have Wipro on the first position, Satyam being second and Cognizant at the third place. Infosys, Patni, TCS, HCL, Genpact, Tech Mahindra and Mastek being the descendants after the three most Indian IT biggies. These IT companies who figure in the top ten have been estimated on the basis of employee performance, corporate leadership and customer satisfaction among other key attributes. It has been pretty difficult to rate these companies as no company came out clear with all the key features in entirety and every company has been rated on the basis of its unique attribute. For example, Mastek stood at number one when rated on the basis of newer technologies and invention otherwise it occupied position eleven. Wipro has been a pioneer in providing the outsourcing services and has become the hot shot among the US buyers. Wipro has delivered the BPO services to the banking and insurance to hospitality and telcom sectors. Other services like knowledge, HR services and manufacturing too were rendered. The services were merged together to call Wipro Consulting Services. Satyam has been the first E-sourcing company and has been favourite among the Indian as well as foreign clientage. Genpact is the other BPO giant who in conjuction with NIIT will set up training centers in major cities of India.
What made these Indian companies to be the hot IT outsourcing destinations:
- Software development solutions: These include custom and medical software development.
- Custom Application Solutions: These include Custom Software solutions along with Mobile Application. Web Application Solutions: Ecommerce, Internet, Web and Net application form part of these.
- Offshore Outsourcing solutions: These may include offshore product development and also software development.
- Other Miscellaneous solutions: These solutions may figure out software testing, software migration, porting of an application to database application development. Worth mentioning , India is much ahead of the other countries as far as the outsourcing is concerned which is reflected from the emerging global competition where China and Russia are the first time honouraries in the outsourcing list of IOAP.
Information Technology (IT) in India- the challenges, Future Scope
The Indian information technology sector has been instrumental in driving the nation’s economy onto the rapid growth curve. According to the Nasscom-Deloitte study, the IT/ITES industry’s contribution to the country’s GDP has increased to a share of 5.2 per cent in 2007, as against 1.2 per cent in 1998.
Further, the IT and BPO industries are poised to clock revenues worth US$ 64 billion by the end of fiscal year 2008, registering a growth of 33 per cent with exports expected to cross US$ 40 billion and the domestic market estimated to clock over US$ 23 billion, according to a study. Simultaneously, the Indian IT services market is estimated to remain the fastest growing in the Asia Pacific region with a CAGR of 18.6 per cent.
Challenges and Positives:
Can we stay Competitive? In the recent past we have seen that the Globalization 3.0 has resulted in Outsourcing and Off-shoring spreading to various other countries like China, Vietnam, Philippines and the Eastern European countries. In the wake of such competition can we still remain competitive? The answer is pretty much yes. We know that our assets are the talented pool of people who are not only competent technically but also linguistically better at English compared to the other competitors. Also the government support, labor pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property security and privacy give Indian IT companies and edge. But contradicting this is the Nasscom survey, which states that majority of the graduates coming out of the colleges today are unemployable. We need to introduce training programs in colleges to train the talent pool of students not only technically but also on soft skills. The training should also be imparted to the faculty to generate a better equipped talent force. These measures have already being taken by the IT companies, which also helps in reducing the training costs incurred by the IT companies after recruitment.
Yahoo! Inc and Tata Sons subsidiary firm Computational Research Laboratories (CRL) have entered into a joint agreement to make available-EKA, a supercomputer (the fourth fastest) in the world for cloud computing research in India.
Dell India witnessed 80 per cent sales over last year with revenues to the tune of US$ 700 million.
World’s leading chip designer firm ARM is expanding its India design centre to make it the largest outside Britain.
IT biggies like Microsoft, IBM, Cisco, Oracle and a host of other IT entities are working overtime to tap the smaller and medium businesses.
Conclusion: Thus we observe that the Indian IT industry has been facing some challenges but if effective steps are taken then it will surely help it to remain competitive in the future as well.
IT companies in India has slower uptake on newer technologies
Bangalore: A ladder can help to reach to the top but an elevator makes it quicker and easier, should be the mindset for the current Indian IT industry, which has to grow in terms of innovation and upgradation. "India has a slower uptake on newer technologies. It takes time to upgrade to the new versions of applications," says Mike Rhoads, Director, Rational Software, Asia Pacific.
A similar view is observed at a Nasscom conference, where it was pointed out that in order to become a top power, India's tech industry needs to upgrade its technologies and business models, which will escape in dwindling profits and market shares. The difficulty in doing so lies in its inclination towards the traditional methods. Infact, the foundation of the policies in the technological line has given more importance to the outmoded systems and institutions. As the Technology Policy Statement of Government of India, 1983 states, "Our future depends on our ability to resist the imposition of technology which is obsolete or unrelated to our specific requirement and of policies which tie us to systems which serve the purposes of others rather than our own, and our success in dealing with vested interests in our organization; governmental, economic, social and even intellectual, which bind us to the outmoded systems and institutions." This defect infact is seen in the IT sector globally, as Gartner points out in a new survey-based report, that the IT sector in general is slow in adapting to new technologies
The main point of this reluctance is the unreliability in the new versions, like many companies are reluctant to shift to Microsoft Vista from XP as the performance of the former is not satisfactory. Moreover, the long usage of any application increases the comfortability leading to hesitancy in the shift.
But a gradual realization has dawned on the IT sector. With the expanding economy, domestic IT spending is spurring as companies upgrade technologies to stay competitive. This will lead the industry to double in size by 2012, predicts the IDC.
|
