Transcript Website Development

… Advantage India…BPO &…
 Highly skilled, English-speaking workforce.
 Cheaper workforce than their Western counterparts.
According to Nasscom, The wage difference is as high as
70-80 percent when compared to their Western
counterparts.
 The cost of telecom and network infrastructure getting
equivalent to rest of the world.
 Dedicated workforce aiming at making a long-term career
in the field.
 Round-the-clock advantage for Western companies due to
the huge time difference.
 Lower response time with efficient and effective service.
 Developed legal system.
… Economic…
 The economy is expected to grow by 6.75 - 7 % during
2005-06 and inflation is likely to be around 5-5.5 %.
 Agriculture to grow by 3.5 %, industry by 7 and services
by 8.5 % next fiscal…Crisil.
 India has one of the largest Telecom Networks in Asia with
approx. 1,23,000 route kilometers of optic fibre cable
network.
 Forex Reserves are as high as $120billion, Exports are
rising @ 20%, Industrial Production is rising @7-8%
 India ranked 10th among 29 emerging markets in the latest
country… Economic Intelligence Unit (EIU)
 Full signatory to WTO and committed to integrate
completely with the world market by year 2005.
… competition … lagging behind
Country
USP
Limitation
Philippines
Understands the US market; voice
work; low attrition
More expensive than
India; small talent pool
Canada,
Australia
Understands the US market; highend skills
High costs
South Africa
Time zone similar to Europe; 25%
cost saving, good for niche work
Skill shortage
China
Low costs
Quality of English not
good
Russia
Technology skills
Poor infrastructure;
corruption; language
Czech Rep,
Hungary
European language skills
Small talent pool; high
costs
Mexico
Immediate neighbor of US, 30%
cheaper than US; Spanish skills
Good only for low-end
jobs
India – Land of Opportunities
Fourth largest
Economy
(PPP) - A safe
place
to do business
Largest
reservoir of
skilled/semiskilled
manpower
Long-term
sustainable
Competitive
advantage
- High growth rate
economy
Largest
democracy –
political stability
& consensus on
reforms
Second Largest
Emerging Market
Liberal &
transparent
investment
policies
Highest returns
on investment;
India 19.33%,
China 14.25%,
Thailand 13.3%
Infrastructure Development
 US$ 12 billion Highways Development Programme;
• Over 13,000 Kms of Highways being developed.
 US$ 22 billion ‘Sagar Mala’ programme to develop ports
and shipping sector
 Modernization of Airports at New Delhi & Mumbai.
 World’s Fastest growing telecom market with unified
licensing regime and world class international and domestic
connectivity;
 The Electricity Act, 2003 enables captive generation and
trading in electricity;
Brand India
 R&D base for 100 of Fortune 500 companies;
 GE’s largest R&D Center outside US;
 Large pool of World class scientific and technical manpower;
 Indian Institutes of Technology;
 Indian Institutes of Management.
 S&T policy aims at R&D investments of 2% of GDP by 2007
 Among the only three Asian countries with super computing
competence
 Strong base for manufacturing;
 Bharat Forge world’s largest forging facility
 Most major MNC’s like Volvo,GM,GE, Chrysler, Ford,Toyota,
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Unilever, Cliariant, Cummins, Delphi sourcing high quality components
and hardware from India
Hyundai Motors India – Global base for manufacturing small cars;
Indica(100% indigenous car) being exported to Europe as Rover City.
Hero Honda world’s largest manufacturer of motorbikes
Precision Automation & Robotics India (PARI) - 20 Fortune 500 clients
Competitive Entrepreneurship
 Prevalence of foreign technology licensing
 Availability of scientist and engineers
 Quality of management schools
 Firm level innovation
 Firm level technology absorption
– Rank 1
– Rank 2
– Rank 9
– Rank 12
– Rank 16
(Source: Global Competitiveness Report, 2002-03)
 India amongst the leading entrepreneurial hotbeds
globally (Red Herring Clubs India with Israel)
India: FDI Outlook
 Rated as the best BPO destination; AT KEARNEY
 Best technology licensing regime - UNCTAD’s
Global Competitiveness Report, 2003;
 Rated among the most favourite investment
destinations (UNCTAD, JETRO, JBIC, Deutsche
Bank, EIU, etc.)
 Major destination for foreign venture capital funds
(Far Eastern Economic Review)
 Sixth most attractive investment destination –
ATKEARNEY Business Confidence Index, 2003
 Also among the top 10 Tourist Destinations.
Skilled knowledge Workforce

India’s competitive edge is its
manpower
 Over 380 universities (11200

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colleges)
1500 research institutions
Over 200,000 engineering graduates
Over 300,000 post graduates from
non-engineering colleges
2,100,000 other graduates
Around 9,000 PhDs
 Knowledge workers in software
and service industry increased
from 6,800 in 1985-86 to
650,000 in 2003
Global Business Leaders - Bullish On
India’s Potential
“India is a developed
country as far as
intellectual capital is
concerned”
JACK WELCH, GE
“India can be a major
part of Dell’s
operations and we are
looking to capitalize on
India’s human capital”
MICHAEL DELL, DELL
“We are expanding
our presence in India
to take advantage of
the ample R&D talent
available”
JOHN CHAMBERS, CISCO
“India is handling the
most sophisticated
projects in the world..I
am impressed with the
quality of work”
BILL GATES, MICROSOFT
Third Party Service Providers (TPSPs)
… Benefits
 Expertise and experience with other clients in similar
business lines.
 Very competitive pricing
 No infrastructural / capital investment.
 Payback period very less (usually between 6 months to a
year).
 Flexibility to scale up and down business relationship.
 Retains decision-making, therefore relationship with TPSP
is clear (fee-based, quality-based); no staff backlash.
 As TPSP works towards a profit there is more business
commitment.
 Customized solutions ensure data security and safety.
What Virtualsource brings to
the Table
Virtualsource
Understanding of
successful JVs with
global majors
Experience of
delivering back office
services to global
majors
Scalable Existing
Infrastructure
Management Band
width
Strong Balance Sheet and
willingness and ability to infuse
further Capital to scale up to
1200 seats