This presentation gives you an idea on the different impacts outsourcing has, on Indian economy. The amount of impact on Indian economy is explained. It also throws some light on why Indian companies are chosen for outsourcing.- by Software development company in india Prepared By: Bhavesh Bulchandani Company: iFour Consultancy Services http://www.ifour-consultancy.com/ http://www.ifourtechnolab.com

1. iFour ConsultancyImpact of Outsourcing on Indian Economy

2.  Outsourcing is the act of one company contracting with another company to
provide services that might otherwise be performed by in-house employees.
 Types of Outsourcing:
1. Onshore Outsourcing
2. Offshore Outsourcing
3. Nearshore Outsourcing
What is Outsourcing?
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3. Outsourcing
 Outsourcing may be broadly classified into:
Information Technology(IT)
Human Resource(HR)
Customer Service
Engineering
Knowledge Services
R&D,etc.
 BPO and KPO are the two major outsourcing components of the Indian outsourcing
industry.
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4. Why: Outsourcing?
 Today, 73 % of Fortune 2000 Companies says “offshoring” is an important part of
their overall growth strategy.(Source : 2005 Duke University CIBER/Archstone
Consulting study)
 It is a common practice to outsource development requirements for:
 Expertise in latest technology
 Rapid deployment
 Lowered costs
 NASSCOM reports that almost half of the Fortune 500 companies choose
outsourcing software development to Indian firms.
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5. Why India?
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6. Why India?
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7. Factors
 Largest technical and professional talent in the world.
 Offers flexible pricing options.
 Provides high quality services
 Best in infrastructure and technological capabilities
 Indian Government is stable and offers attractive IT policies
 Indian companies provide quickest time-to-market
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8. Role of Outsourcing in Indian Economy
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9. Role of Outsourcing in Indian Economy
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10. Role of Outsourcing in Indian Economy
Source : Everest,IDC,NASSCOM
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11. Role of Outsourcing in Indian Economy
Source : Everest,IDC,NASSCOM
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12. Economical Impacts
 Outsourcing industry has provided positives such as:
 Increasing national income
 Greater employment avenues
 Increase in tax revenues which caters in the growth of infrastructure, catering etc.
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13. Cultural Impacts
 Losing many traditional and cultural benefits. The outsourcing companies and
projects emphasize on the foreign cultural values.
 The gap between fast-growing and slow-growing areas widening.
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14. Risks in Outsourcing
 Over dependence on outsiders job is risky because of the uncertain world of
politics as they are controlling the economics. A war or a foreign policy decision
may snatch the outsourcing job.
 For e.g.; as the US unemployment level is rising, the American politicians are
bringing out more proposals that appear to limit the use of offshoring.
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15. Risks in Outsourcing
 Emergence of competitors including Brazil, Philippines, Mexico, Canada, China and
Ireland.
 The emerging cloud sourcing market will cause the destruction of the outsourcing
market
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16. Refrences
 NASSCOM. (2015). The IT-BPM Sector In India. NASSCOM.
 Sachs, N. B. (n.d.). India in the Era of Economic Reforms - From Outsourcing to
Innovation.
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17. Thank You
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