Introduction – India Scenario
Emerging India is the world’s next economic power. A nation of great diversity and great skill.
As businesses evolve globally, organizations are transcending boundaries, customers and suppliers. So much so that even processes are going abroad.
India is a rapidly progressing nation and today it is the 4th largest economy in the world with the 2nd largest GDP among developing nations. The subcontinent is growing with macro economic stability and is in the process of integrating with the world economy. Over the last decade India has registered the fastest growth among major democracies.
Thriving on the challenges of a mew millennium, today India is a nation offering far beyond merely a low cost alternative. Among Microsoft’s three development centers one is located in India and Motorola was the first SEI CMMI level 6 organizations to enter the country. In this country, IT Engineering and Management Schools produce some of the finest talent globally. A fact that clearly indicates fundamental endemic knowledge and skill.
BPO India
With a large employable talent pool and good IT infrastructure India emerges, not surprisingly, as the preferred destination to off-shore. It all began with British Airways and American Express in 1992. The BPO industry took a big turn in 1997 when GE entered the country with a decidedly strong off-shore model. Now, a large financial services presence ensures availability of experienced talent, while graduate and postgraduate schools add close to 3, 000, 000 people to the eligible talent set. India is now a proven market for Business Process Off-shoring with over one million people and 15 years of experience.
Mumbai being the financial capital of the country it is the most exciting place to work for financial services professionals. Financial initiatives, on the other hand, bring welcome advantages such as a no tax period, technology backbone and IT enabled services (ITES).
Due to its inherent nature much would not be possible in the BPO industry without the technology in India. Thanks to cheap bandwidth India is ideal for off shore operations. Mumbai is the termination point for two global submarine cables coming from the Suez Canal and Japan. And to top it off, Microsoft has a different pricing mechanism for its products in India 60% of India’s global off-shore share originates from the USA, 25% from the UK and 15% from the rest of the globe. And the benefit to a company operating in India is a 40 – 50% cost saving. But is that sustainable? In terms of employment remuneration for BPO employees the market has witnessed a CAGR of 12-15%. In terms of technology, bandwidth costs have reduced by over 70% in the last 5 years while hardware costs have seen a 50% reduction. Lease rental on facilities have increased only marginally and fit-out costs have remained stable in the face of improving standards. A significant attraction for off-shoring here is the depreciating rupee against the pound. Increasing from Rs 67 in 2000 to Rs 83 to the pound in 2008, thereby improving cost competitiveness. Talent pool, cost deferential and quality ensures that India continues to dominate as the off-shore capital of the world.
Strong fundamentals make India virtually irresistible as an ideal off-shore destination. People, process and technology integrate perfectly here to bring about definite cost benefits. Furthermore continuous ongoing process improvement has absorbed six sigma methodologies to eliminate excessive processes making a much leaner, faster, more responsive organization.
JLT India – Simon Curtis & JLT Personnel
Simon Curtis: Simon Curtis from Jardine Lloyd Thomson came to India on a fact finding mission on the benefits of outsourcing for JLT.
Alphi: Technology is the backbone of a business outsourcing organization.
Mandeep: The facility of special economic zones in Mumbai is conducive to expanding BPO size and scale in the long rum for JLT.
Puneet: Let’s take a look at how work migrates from the U.K. to India?
A day in the life: Jardine Lloyd Thomson people not only do a great job but enjoy it too.
Duncan: Here’s what one of our client feels about us.
JLT Environment: A busy day at the office brings about the kind of results we are beginning to see. But through it all JLT people are still in touch with the world through the internet facility. Also, the cafeteria has a wide menu.
Simon Curtis: Simon has been exhaustive while here in India. The facts he discovered will lead to a deeper understanding of the issues involved.
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