8/3/2019 Preface to the Information Technology

1/12

SEMINAR ON

8/3/2019 Preface to the Information Technology

2/12

INTRODUCTION SCOPE SOURCE & INTERVIEW S INDIA IT/BPO DIFFERENT ROLES OF FDI IN IT/BPO DEFINITION OF FDI

EXTERNAL INFLUENCE OF FDI FDI IMPACT HOW FDI ACHIEVED IMPACT EXTERNAL FACTORS

8/3/2019 Preface to the Information Technology

3/12

Offshore service includes IT and BPO relatedservices to remote location to leverage

differences in wage levels and availability ofskilled labor between the new location andformer. This sector has shown high growthover past two decades and has acceleratedsignificantly in past few years.

8/3/2019 Preface to the Information Technology

4/12

Scope of IT/BPO includes looking at bothcaptive and third party outsourcing

arrangements . It does not involve domestic outsourcing . India have given importance to offshore

service. Measure the productivity

8/3/2019 Preface to the Information Technology

5/12

Data was available from annual reports,company financial statements, and through

interviews The outstanding industry dynamics and

impacts of external factors were based onmore than 40 interviews with companyexecutives , governmental officials , industryanalysts and industry associations.

8/3/2019 Preface to the Information Technology

6/12

India is the worlds largest supplier of IT & BPOservices accounting for 25% of the globalmarket.MGI estimates current global off shoring

market to be roughly $32billion in size. IT offshore service accounts for 80% of Indias

export and remaining 20 % with BPO services. It is projected that this sector will grow to over

US$200billion in size by 2008. India will notretain but also will gain further market shares.

India is one of the few country which is able tosupply the sector that is projected rate of growthwithout causing wage inflation.

8/3/2019 Preface to the Information Technology

7/12

IT SEGMENT

Impact has been positive

but limited shows strong growth since

1980 prior to receiving FDI.

BPO SEGMENT

Has very strong positive

impact. Limited amount of FDI is

received since the mid of1990s

8/3/2019 Preface to the Information Technology

8/12

Foreign Direct Investment( FDI) is a type ofinvestment that involves the injection of

foreign funds into an enterprise that operatesin a different country of origin from theinvestor.

FDI is classified into two they are inward FDIand outward FDI.

8/3/2019 Preface to the Information Technology

9/12

Country-specific factorsI. Labor marketII. Government policiesIII. The Indian DiasporaIV. IncentivesV. Supplier base Negative impactsI. infrastructureII. conflict with Pakistan Global factors Barriers with companies

8/3/2019 Preface to the Information Technology

10/12

ECONOMIC IMPACT Sector creation Sector productivity

Sector output Sector employment Suppliers spilloversDUSTRIBUTION OF FDI IMPACT

Companies Labor Consumers Government

8/3/2019 Preface to the Information Technology

11/12

Sector creation

Industry dynamics Operational factors Transfer of best practices Suppliers spillovers

8/3/2019 Preface to the Information Technology

12/12

Country specific factors Initial sector condition