New Economist: Outsourcing: India "the back-office of the world"

an interesting article

リンク: New Economist: Outsourcing: India "the back-office of the world".

Outsourcing: India "the back-office of the world"

Deutsche Bank's latest report on the Indian economy, Outsourcing to India: Crouching tiger set to pounce (PDF), reports that India is "the back-office of the world", currently commanding 44% of the global market for IT services and IT-based business processes (BPO). The global market is currently worth some $40 billion, and will continue to show strong growth. The report, by Jürgen Schaaf and Thomas Meyer, notes that India’s key comparative advantage is its availability of well-trained, English-speaking and inexpensive specialists. However future shortages of IT specialists are likely:

There remains a risk that even India’s huge pool of graduates may not be able to continue meeting the sustained high demand for specialists. The quality of many universities is much lower than that of the elite institutions in India’s tertiary education system. Only around 10-20% of  graduates have the requisite capabilities for international business. And the demand pressure is rising. Employee turnover is already high (15-30% p.a.), and the pay for experts is rising by 12-15% per year. Establishing a broader base for education and setting high standards straight away at primary school level should therefore be the priorities of Indian education policy.

On a more positive note, the report concludes that:

The big Indian IT groups are breaking free of their domestic shackles. They are also proactively confronting the looming competition from other emerging markets. They are expanding into the US and Europe and recruiting experts from other emerging markets. They are moving up the value chain and offering higher quality services like consulting and knowledge process outsourcing (KPO). Their strategies are highly promising and growth still appears on the cards.