Services and IT outsourcing in India

Abstract

Whereasmost of the emerging country orientates their growth on the exportation of manufactured and agricultural product, India chooses an original way of development based on services and IT.Indeed the Indian contest, which combines low costand high skilledlabor, is favorable to this kind of business. With the liberal reforms of 1991 Indian government slated the growth on this direction. The high Indian education and the foreign direct investment played an important role too.A real cluster of informationtechnologies has been developed in India. The service sector is very large and included some simple task such as call center and some high skills work such as engineering services. Some important multinational companies, such as IBM, have already been working in India for few years. Some Indian companies, such as Infosys, profited too of this wave. Now the service sector is the most dynamic sector of the Indian economy.In a first time, we will try to explainwhy India attracts Multi National Companies (MNCs) investments. Then, we will presentwhat kinds of services can be outsourcedin India : Call centers services, Data entry services, transcription services, engineering services, healthcare services, financial services, software services, web analytics services. In a second part, we will talk about the different actors of this phenomenon and about the causes ofthe outsourcing. We will examine the context and the viability of these kinds of outsourcing. During our work, we will treat some pragmatic aspects and we will try to present all the new opportunities of outsourcing in the field of services. We will try to illustrate our work with the strategy of some occidentals companies which choose to be present in India and the one of the main Indian companies surfing on this wave.The Aim of this project is to give us the opportunity to have a more concrete view of this field. What type of services has been outsourced? Why outsource? Howoutsource? Who is outsourcing in India? Is these phenomenon and model are durable?