India - global service destination by Sruthi S

India – Global destination for services

sruthi_s — 2016-09-15 11:23:03 UTC

Venkadeswari M, PRN-15030241206

2016-09-18 13:29:30 UTC

Evolution of India as a Service Sector

Initiation

• India’s off shoring story began in 1985 when Texas Instruments set up its office in Bangalore

• 1985

• Texas Instruments establishes the first captive center in India, heralding the era of offshoring.

Early Adoption

• GE was the next to come in 1989-90 and this was the kick start for Indian service sector

• 1990-98

• Many companies established and ramped up captives in India. Most of these were from Hi-tech, Telecom, and IT.

• Business process captives were still in very less numbers.

Explosive growth

• Around 2002, services from automotive sector worth $65 billion were delivered by India by McKinsey analysis

• 1998-2006

• The global financial services sector rapidly adopts the captive model.

• BPO captives appear more regularly. Many global technology firms add IT captives as well.

• Captives deliver $8 B worth of services in 2006.

Introspection

• After 2005, India started evolving in the range of options for ownership models for sourcing of services

• 2006-2009

• Many captives face the dilemma of their relevance and cost. Some of them are monetised.

• However, the growth continues and new captives are added.

• Captives deliver $ 10.6 B worth of services in 2009.

Suhail Ahmad

2016-09-18 13:47:12 UTC

Sruthi S, PRN 15030241200

sruthi_s — 2016-09-18 14:39:14 UTC

Pillars of Indian Ecosystem helping Services Industry

“…yesterday’s ‘I was replaced by a computer’ is today’s ‘they send my job to India!”
-Chris Anderson of Wired

Now the scenario of service delivery in India is changing. Foreign Direct Investments are increasing and big firms across the globe invest in Indian market.
Over past 10 years, American companies have come to India to increase markets – these companies ended up outsourcing instead.
The main reason behind are the 4 pillars :

India - Most Attractive Market

India's economic growth is continuously increasing for the past 10 years.
India as now becoming digitalized, is market ready for easy service delivery.
India's spending power is on the hike and the investment climate is increasingly positive.
As India is a developing country, there are still Unmet needs for the people.

India - Excellence in business delivery

Optimum costs
Highest volume of diverse employable talent
Strong network of GDCs, multishore presence
Quality infrastructure and mature ecosystem
Effective collaboration and partnership

India - Hub for digital skills

India's working environment enables skill set development by focused trainings provided
~30% start-ups working on innovative solutions
>2000 digitally focused start-ups in the year 2015-16
more than 1.5 lakhs of employees highly skilled in digital marketing and digital communication technologies

India - leading Innovator in global IT-BPM industry

Large firms fostering innovations and leading firm like Google, Facebook CEO's attention attracted towards Indian startups
Huge scalability in service industry
Highly strengthened entrepreneurial environment and co-creation of innovative business solutions

Tanuj Kumar, PRN- 15030241203 India preferred location - Statistics to prove

tanuj_kumar — 2016-09-18 18:45:52 UTC

- out of top 10 destination for service providing 6 are Indian cities.

- India ranks 2nd in cost index with 8.3 just behind Indonesia which is 8.6 in service delivery.

- India ranks 1st in resource skills with 6.7 which is way ahead of china which is at 2nd position with 5.8.

- As per research conducted 60% of all the companies are interested in or already investing in India in services followed by china which is just 26%..

- Profit maximization is the main purpose of any private firm. As per research by valueNote 47.1 million US Dollar is the saving per year if services are outsourced in India followed by Philippines with 46 million US Dollar and rest others are far behind.

- These statistics shows that India has been the global service destination, though its getting small competition from Philippines and china it still is the favorite and with government attracting more investments with different policies, it is going to be the most preferred destination in future as well.

Vrunda Naik, PRN - 1503024120

venkadeswari_m — 2016-09-18 20:39:15 UTC

Shyam Karda, PRN-15030241197. The benefits of doing business with India--

shyam_karda — 2016-09-19 06:50:39 UTC

India's investment friendly policies, forward–thinking reforms, higher disposable incomes and rising middle class have made it an attractive outsourcing destination for foreign investors. When any country do business with India, can be sure to experience these key benefits:

will not face any language or communication barriers as over 350 million people in India are fluent in the English language that's why India has been successful in the outsourcing industry.

get dedicated employees to work for you, as many Indians work eight hour shifts for six days a week. Indians also willingly work around the clock to compensate for the time difference between India and the US or UK. Only India can give access to committed employees who are more than willing to work long shifts over odd hours.

get access to a huge talent pool of experienced specialists. The high value placed on education in India has resulted in a highly educated workforce who have experience and knowledge in varied fields.

India is a safe haven for outsourcers as it has a stable government which has taken several initiatives(e.g. IT Act, set up a Ministry for IT etc.) over the years to promote India as an outsourcing destination.

will face fewer cultural challenges when you share new business ideas and endeavors with Indians, as they are always open to new ideas and opportunities.

India is providing better infrastructure by taking initiative of building industrial park, SEZ (special economic zones), Industrial corridors etc.

Tejasvini Dhimmar, PRN-15030241204

2016-09-19 10:12:01 UTC

Developing Domain expertise in India

As a response to client needs Indian IT players started creation of verticals in the industry to create domain specific knowledge. Now the focus is more on hiring people with domain expertise. These are generally resources with significant industry domain knowledge. This has resulted in the following advantages :

Greater focus on problem solving and consulting services
Offering higher value services
Domain building through mergers and acquisition
Hiring of doctors and lawyers to build the competency in law and healthcare area
Industry revenue has diversified into new areas like telecom, healthcare, retail etc in last few years. Earlier the industry was highly dependent on revenue from BFSI and manufacturing sector.
BFSI and manufacturing is still the leading contributor with more than 40% market share of IT outsourcing spend
Emerging verticals Healthcare, Retail and utilities form more than 30% of spend
Emerging verticals exhibiting 2X average industry growth
Knowledge services outsourcing and Infrastructure services outsourcing are new growth segments

Suhail Ahmad, PRN- 15030241201

2016-09-19 11:44:00 UTC

Service Sector and India
Indian economy is classified in three sectors — Agriculture and allied, Industry and Services. Agriculture sector includes Agriculture (Agriculture proper & Livestock), Forestry & Logging, Fishing and related activities. Industry includes Manufacturing (Registered & Unregistered), Electricity, Gas, Water supply, and Construction. Services sector includes Trade, repair, hotels and restaurants, Transport, storage, communication & services related to broadcasting, Financial, real estate & prof servs, Community, social & pers. Servs.

Services sector is the largest sector of India. Gross Value Added (GVA) at current prices for Services sector is estimated at 61.18 lakh crore INR in 2014-15. Services sector accounts for 52.97% of total India's GVA of 115.50 lakh crore Indian rupees. With GVA of Rs. 34.67 lakh crore, Industry sector contributes 30.02%. While, Agriculture and allied sector shares 17.01% and GVA is around of 19.65 lakh crore INR.

At 2011-12 prices, composition of Agriculture & allied, Industry, and Services sector are 16.11%, 31.37%, and 52.52%, respectively.

According to CIA Fackbook sector wise Indian GDP composition in 2014 are as follows : Agriculture (17.9%), Industry (24.2%) and Services (57.9%). Total production of agriculture sector is $366.92 billion. India is 2nd larger producer of agriculture product. India accounts for 7.68 percent of total global agricultural output. GDP of Industry sector is $495.62 billion and world rank is 12. In Services sector, India world rank is 11 and GDP is $1185.79 billion. Contribution of Agriculture sector in Indian economy is much higher than world's average (6.1%). Contribution of Industry and Services sector is lower than world's average 30.5% for Industry sector and 63.5% for Services sector.

At previous methedology, composition of Agriculture & allied, Industry, and Services sector was 51.81%, 14.16%, and 33.25%, respectively at current prices in 1950-51. Share of Agriculture & allied sector has declined at 18.20% in 2013-14. Share of Services sector has improved to 57.03%. Share of Industry sector has also increased to 24.77%

Vaibhav Shah, PRN - 15030241205

2016-09-19 15:47:58 UTC

INDIA - The World's Brain Trust

When it comes to quality, there is no compromise from India.
Research surveys have even proved that Indian professionals are technically superior when compared with IT professionals from other countries.
India's unique time zone advantage.
The cost of labor is low, but there is no compromise on the level of quality.
Highly educated workforce that is experienced, skilled, proficient in English, computer-literate and technically talented.

Shivani Varma

2016-09-19 18:34:47 UTC

Shivani Varma, PRN-15030241210

2016-09-19 18:34:47 UTC

Types of Service provided by India

• Call centers and IT services

Recent research has shown that a large percentage of customers prefer live telephone answering services over answering machines with pre-recorded messages, as they are cold, inaccurate and impersonal.

Maintaining such a well-organized inbound call center requires huge administrative setup and a great deal of time, effort and money, therefore most companies prefer call center outsourcing to India as setting up a call center here can drastically reduce operational and infrastructural costs.

• Drug R&D

The R&D service in India has increased over the years; it is still far behind global peers. According to industry estimates, India attracted merely $1.7 billion into pharmaceutical research in 2014 and $1.8 billion in 2015.

• Pottery Barn furniture

Pottery Barn is a United States -based upscale home furnishing store chain with retail stores in the United States, Canada, Puerto Rico, the Philippines, Mexico and Australia. They also outsource their furniture (making) to India.

• Live-chat representatives

Indian companies have recently carved out their online presence on the Internet in record numbers and are all set to deliver top-notch customer service on the web through live chat.

• Tax preparation

Most businesses fail to realize that having enough time for tax preparation allows them to put their documents in order, and reduce the overall chances of any errors from occurring. India offers bespoke tax preparation services for both small and large scale businesses at a very less cost.

Vishal Bamane, 15030241207

2016-09-19 19:20:16 UTC

Why India -A Global Destination of services ?

- India is considered to be having one of the stable government. FDI has been liberalized and the cost for doing business has been taken down. Inflation rates are low. GST approved.

- The population of India is 125 crore and out of that about 800 million are under the age of 35 years. And looking at the literacy rate today which is 74% we are having majority of capable working individuals to handle the IT sector.

- Culture wise India is very diverse. We know how cultures differ in living, food, religious practices, clothes, languages, music, literature, history, etc, even though we have become more open and moving towards tolerance regarding these things. This is a sign of development. All these points are a sign of development which leads to innovation and economic stability and growth.

- 100% Foreign direct Investment in most sectors.

Sneha Takle, 15030241199

2016-09-19 21:00:12 UTC

India as Preferred Choice:

1. India has maintained its dominance in global sourcing of services since then, owing to its mature ecosystem.
2. India provides the widest array of services (IT, BPO, KPO, R&D, Engineering services etc) and the most mature service providers .
3.The Indian IT/ITeS industry has a strong and established customer footprint in North America and Europe and is in the process of establishing itself in Latin America. 4.Emerging destinations across low cost clusters such as Eastern Europe, North Africa, South East Asia pose a strong challenge to India. Philippines has been able to topple India’s leadership position in 2013, but only in voice BPO segment.
5. India offers a large talent pool for easy scale up
6. Data security and privacy regulations are in place
6. The Union Government has supported the industry through policies around taxation, investments .
6 India having young talent.
7 Currency difference makes service industry invest more in india.
8. 100% FDI and FII
9.

2016-09-19 21:01:59 UTC

Shweta Hariharno; 15030241196

2016-09-20 10:36:47 UTC

Make in India- The Success S in Foreign Investment..

Make in India is an activity propelled by the Government of India to support multi-national, and in addition national organizations to fabricate their items in India.
India would have liked to rise, after start of the project in 2015 as the top goal all around for outside direct venture, surpassing the United States of America and additionally the People's Republic of China.
India received US$63 billion in FDI (Foreign Direct Investment).

How Make in India is helpful in growth of economy by adopting this (FDI) strategy among following Sectors:

It focuses on the following twenty-five sectors of the economy:

Automobiles
Automobile Components
Aviation
Biotechnology
Chemicals
Construction
Defense manufacturing
Electrical Machinery
Electronic systems
Food Processing
Information Technology and Business process management
Leather
Providing skilled Man-powers to all sectors.
Media and Entertainment
Mining
Oil and Gas
Pharmaceuticals
Ports and Shipping
Railways
Renewable Energy
Roads and Highways
Space and astronomy
Textiles and Garments
Thermal Power
Tourism and Hospitality
Wellness

Considering above sectors, it can be said that India is the business and economy generating HUB for foreign companies to invest.
It brings the good money flow and
new job opportunity for mass manpower.

"Zero Defect Zero Effect" Policy coined the good Public Relation with other Countries-

"Zero Defect Zero Effect" is a motto authored by Prime Minister of India, Narendra Modi which implies creation instruments wherein items have no deformities and the procedure through which item is made has zero unfavorable natural and environmental effects. The trademark likewise expects to keep items created from India from being rejected by the worldwide business sector.

courtesy: Make In India success stories told around the globe (at London Heathrow airport )

Amazing facts about Make In India:

India has vast amount of natural and shale gas reserves.
It is also world’s 4th largest consumer of crude oil and petroleum products.
The IT & BPM industry will be worth $225 billion by 2020. It also contributes 8.1% of the country’s GDP.
India is the 9th largest civil aviation market. and has potential to become 3rd largest by 2020.
India is the 3rd largest market in the Asia=Pacific region of biotechnology, which can turn into a $100 billion industry by 2025.
The construction activity in India accounts for 10% of its GDP.
India is the 4th largest market for automobiles by volume having a CAGR of 8-9%.
India is the fourth largest producer of steel in the world.
Accounting to 2.11% of the GDP, chemicals production by India ranks 6th in the world by output.
India is home to 127 agro-climatic zones, with top rankings in production of important cereals and horticulture.

there are many facts about Indian economical and natural strength. this leads India to the success of Make in India and it plays a vital role in achieving the targeted goals for true success of India among the super powerful countries..

Smrutika Jadhav

2016-09-20 12:10:47 UTC

PRN 15030241198

Why to choose India Over Others ??

India has the largest technical and professional talent pool with about 3.1 million graduate speaking English which is greater than US and UK combined .
India Offers Best Pricing Options this is possible because of the wide gap that exist between the personnel cost in India and Developed Countries
India provides consistent high Quality Services NOA (National Outsourcing Association )has provided a trend of cost benefits along with reduced time to market a reason for choosing India
India boast of best in Infrastructure and technologies . Modern India is well developed and offers state of art telecom, ISP and cellular networks in major cities and towns
Only destination that exports software to 95 countries across the world
15 Indian companies (out of 23 such software companies in the world) have attained the impressive SEI–CMM Level 5 certification
Recent research by NASSCOM has indicated that India will soon have the world's highest number of ISO–9000 software companies
India has been ranked the third–best country in Asia, with excellent investment potential

Operating Cost Comparison

sruthi_s — 2016-09-23 07:10:41 UTC