THE INDIA ADVANTAGE
Language
1. India has the second-largest English- speaking population in the world.
2. English is the principal language for the business transactions in India.
Manpower
1. India has the second largest and the fastest growing pool of technical manpower.
2. High availability of Computer literate, English speaking & educated customer care professionals.
3. India has the lowest manpower cost. Manpower cost is approximately one tenth of what it is overseas. The annual cost per agent in USA is approximately $40,000 while in India it is around $5000.
Reliability and Security
The work force is highly reliable and can deliver world-class quality and ensure rapid delivery of service. Indian companies are also increasingly adapting to international quality and security standards.
Infrastructure
1. India is outfitted with well-connected telecommunication systems on a world-class scale· High availability of infrastructure resources.
2. India's satellite-based telecommunication network enables almost instantaneous high-speed transfer of voice and data across the globe.
Legislative Framework
1. Highly liberal Government policies on Call- center operations
2. Maintains High cost-competitiveness in service sectors
3. Proactive Government - 10yr. Tax holiday · Duty free import of capital machinery and software.
Cost Benefits
Indian companies can provide call center services to clients based in the U.S. or the U.K. at one-sixth to one-fourth of what it costs in the U.S., U.K. or Australia.
Time Zone
A virtual 12-hour time zone difference with the USA and other markets for Call Center services is in India's favor.
Pro-Active Government
The department of telecommunications, Government of India has given a special thrust to the industry by reducing the prices of high-speed international private leased circuits. The recent IT boom has prompted the Government of India to announce exemptions from income tax and customs for the exports of IT enabled services. Central and the State governments have put emphasis to set up state-of-the art infrastructure for the projected boom for IT enabled services. Private Internet gateways and 100 foreign direct investments have been given approvals. "Potentially 50-80 percent of total process costs in most IT enabled services can be out sourced offshore. As much as 70 - 80 percent costs can be reduced primarily because of wage differentials. However, in order to manage operations in remote locations, expatriate management may initially be required to support the remote locations. This together with higher telecom costs could result in additional costs of 10-20 percent. Hence there could be 50-60 percent saving on out located processes." (VCare Technologies, Market Perception Memo III, July 2000)
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