Bangalore city has carved a niche for itself as the IT capital of India. Almost hundred multinationals have set up facilities in and around Bangalore. Global corporations like HSBC, Dell, Microsoft, GE, Oracle, Google, Yahoo, Hewlett Packard, and several Indian companies of repute like TCS, Infosys Technologies, Wipro, and Microland have offices in the city.
Americans who are wary of setting up “sweatshops” in other countries have found that Bangalore is far from the image they initially had. One group of management students observed that the vast work spaces with attractive design elements were as good if not better than some of the work places in the US.
Most companies wishing to outsource look for the best spaces, with high ceiling heights, good broadband connectivity and areas of around 40,000 to 50,000 square feet. Bangalore has provided just that. Software Technology Parks of India (STPI), Bangalore, a society under the Ministry of Information Technology, Government of India, has since 1990 encouraged investment in software parks by providing fiscal incentives and state of the art infrastructure. As a result, various world class IT Parks have been established in Bangalore.
Some of the most well known IT Parks and IT infrastructures in Bangalore are:
•The International Technology Park: Housing companies like GE, IBM, GM, and Lucent Technologies
•Electronics City: Housing companies like Motorola, Infosys, Siemens, ITI, and Wipro
•Export Promotion Industrial Park: Housing GE’s Technology Center among others
Along with these parks there is also the IT Corridor project, covering a huge expanse of 8000 hectares and independent office buildings like that of I Flex Solutions, Oracle, Yahoo and Reuters are a true illustration of the state of the art facilities available in the city.
These facilities, along with Bangalore’s talent pool, give it an edge over the other outsourcing locations in India.
"Bangalore is know as India's IT Capital"
Why Outsource to India?
The primary reason for outsourcing is the cost effectiveness factor. India has proved to be one of the most cost effective outsourcing locations in the world. However, it does not stop there. Besides being cost effective, India has also produced quality certified software solutions for the world. It has more ISO 9000 certified software companies than any other country in the world. India also holds the distinction for having three out of four SEI-CMM 5 companies in the world. The fact that India exports software products to more than 95 countries seems to justify these certifications. India is the favorite outsourcing location of 82 percent of the US software export market (Nasscom).
Since its basic education system is geared toward mathematics and science at early levels, Indians is able to provide rich technical expertise. Many of the educational and training institutes of India have an international reputation for quality education and offer some of the best programs in the world.
A couple of other factors making India a favorite IT outsourcing location are that India has a stable political environment and pro-IT government. It also has reliable satellite and submarine communication links that facilitate good broadband connectivity with the rest of the world. These technological factors have enabled businesses in India to work at a quick pace with a short turnaround time. India and the US have a 12 hour time zone difference. This facilitates 24-hour customer service availability for some of the outsourced businesses.
Since Indians are proficient in English and possess intercultural understanding, the language and cultural barriers faced while outsourcing to other countries are non-existent. India, therefore, continues to be the world’s favorite outsourcing location and IT heavyweights like Microsoft, Intel, Cisco, Oracle, Dell, and Compaq have already made huge inroads here.
Why outsourcing?
While most large scale businesses easily opt for outsourcing, many medium and small businesses may not see the need for it. However, industry trends have shown that companies that have outsourced have experienced huge, tangible benefits as a result.
In the highly competitive industrial arena, only niche players flourish. Companies that focus on their core competencies outstrip their competition to soon become industry leaders. Focusing on core competencies requires that companies separate out various basic tasks and outsource them to companies that specialize in these areas.
Most companies that receive outsourced work, offer cost effective, quality solutions to the outsourcing companies.
•Higher quality service because it is a core competency of the supplier
•Lower costs
•Reduced dependency on internal resources and related contingencies
•Control on budget
•Faster setup of the functions or services
•Savings on ongoing investment required for infrastructure generation and maintenance
•Greater ability to control dates on deliverables (e.g.: via penalty clauses)
•Acquisition of innovative ideas
•Improved credibility and image by associating with superior providers