The Quality Movement: India's Competitive Advantage India has fundamental advantages in competing for IT investments because of its combination of a skilled and English-speaking work force willing to work at internationally competitive wages , a reliable communications network in the major cities, and an ideal time zone placement for 24- hour , 7 days a week production. Some of the key success factors placing India in a leading slot for software developments compared with other nations include: -
Reputation for quality ” India's tremendous pool of highly skilled intellectual capital in the fields of technology and engineering are a critical asset. As of October 2001, India had 32 companies at Software Engineering Institute (SEI) Capability Maturity Model (CMM) Level 5 (highest) assessment, whereas there are only about 58 organizations in the world to have acquired such standards of excellence. [15] -
Competitive costs ” According to NASSCOM, the cost advantage of developing services in India ranges from 30% to 80% lower than those in the U.S. or Europe. -
English fluency ” Besides India's ease with technology and engineering, its preference for the English language for business practices serves to facilitate communication. The country's pool of English-speaking scientific and technical personnel is the second largest in the world (after the U.S.), and thus a key business consideration for investments. -
Expertise ” A track record of success in the IT industry has created a significant presence for India on the global IT front. Software exports by large MNCs in India grew by a sharp 30% in 2000 as more companies diversified and expanded their Indian operations. Government investments in education during the 1960s also played a significant role in producing India's pool of highly skilled engineers and programmers. -
Enormous talent pool ” India's vast output of engineering students is a tremendous resource in staffing the global needs for technically skilled manpower. The Indian venture capital (VC) industry has grown in recognition that supporting this enormous talent pool will be an important prerequisite for the growth of an innovative and entrepreneurial economy in the country. -
Time zone placement ” The 12-hour time difference between Indian Standard Time and Pacific Standard Time in the U.S. provides a convenient way to maintain the 24/7 service standard of most MNCs; service centers in the U.S. are thus able to send in their day's work to India for continuing work so that significant progress is made overnight. -
Vendor sophistication ” More than 285 Indian IT software and services firms were quality accredited by 2001, [16] and the emerging number of vendors operating under international standards of excellence across a wide gamut of IT software and service areas are a key source of future strength for India's performance in the IT industry. -
Transnational support from the Indian Diaspora ” India's vast network of professionals abroad, commonly referred to as non-resident Indians (NRIs), are a key advantage for Indian companies within the nation. The reputation of these entrepreneurs, built on their widespread success across a variety of business enterprises ” often in key managerial positions of prominent global companies ” has laid the groundwork for the intellectual potential within India. This community of immigrants, once considered India's loss in terms of it's intellectual "brain drain," are now acknowledged to be a vast resource in terms of their access to capital, business expertise, key networks, and emotional commitment to the homeland. -
The ethic of hard work ” The ability and drive to work beyond the "call of duty" is an important aspect of the Indian mentality that serves to distinguish the Indian work force. This drive to top every expectation is a natural result of the degree of competition that Indians face in each aspect of life ” from getting into the best schools and universities to competing with millions of other talented and driven Indians for jobs, promotions, and future success. -
Supportive government IT policies ” Against the backdrop of unprecedented central government mobilization in the IT sector, state government initiatives are also becoming increasingly competitive. For example, the government of Karnataka created incentives for the IT industry by postponing its levy of a 4% sales tax, while the central government in New Delhi has already approved the online payment of specific transactions. |
