The IT enabled services sector in India has achieved revenue of 4,100 cr in 2000-01 and is growing at a fast rate of over 70% per annum. This is despite the fact that the rest of the world economy is on a downturn. India is being seen as a major player for outsourcing of business processes and customer services by the West.
The
reasons for such a sudden spurt of activity in this sector are three-fold: One,
the industry has realized (especially in the West) the growing importance of customer
retention; second, the technology has now enabled these companies to outsource
the activity to external agencies, whose core-competency is customer retention
and customer service. This helps them to get better service at a cheaper cost.
Third, India with its large English speaking population, sensitive to quality,
service-orientation and above all cheap labor is offering these services at a
fraction of the cost without compromising on any quality aspect. The cost factor
is gaining ground as there is heavy pressure on the companies to cut cost in today's
depressed economy.
In
the past few years, India has installed reliable, high capacity telephone lines
in most of the cities, making it possible to communicate with someone in the US
by phone as easily as communicating within the US. Telecommunication technology
and free trade in services are giving India its biggest opportunity to provide
remote interaction services.
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