Outsourcing to India 2nd Edition By Mark - Part1

Yesterday i started reading Outsourcing to India 2nd Edition By Mark Kobayashi-Hillary.

Nice book written by Mark Kobayashi-Hillary.

I want to share few quotations i found from this book from the first 10 chapters.

1) A recent study by McKinsey supported this very argument,when they found that for every $ 1 previously spent in America and now off-shored to India, $1.47 of global value was created.

2) In many respects India is a true world leader. Indian mathematicians gave the world the concept of the zero. Indian artists produce more films each year in Bollywood than Hollywood. India and China combined make up more than a third of all the people on the planet. The quality of the Indian knowledge based industry is
leading the world into an outsourcing revolution that is no less important than the invention of the steamship or railway.

3) Chapter 1 Checklist

• The population of India is immense. Over one billion people at present with an estimation of one and a quarter billion by 2011. Only China has more people.
• Poverty can be shocking to visitors, but India remains a developing nation and extensive poverty remains clearly visible.
• Literacy is improving, though one third of Indians still cannot read or write.
• The area of India is approximately one third of the continental US.
• Middle Class citizens of India have similar purchasing power to Americans and Europeans and are approaching the same as the population of the US. in number.
• Technology and the enthusiastic embracing of the knowledge economy are allowing India to accelerate the expansion of its middle class.

4) Mohandas Karamchand Gandhi is probably the single most influential Indian that ever lived. His dogged persistence to fight the British with a doctrine of nonviolence and self-discipline led India on the path to independence. He embodied a spiritual world unchained by the doctrines of a single religion and lived every
word of his own teaching. Even after death he inspired great leaders of oppressed people including Martin Luther King and Nelson Mandela and his influence lives on across the world today. Gandhi was the ersonification of non-violent diplomacy,a person who focused alone on the all-important issue of human relations. When he died, his only possessions were the meagre clothes and sandals he was wearing, his spectacles, watch, rice bowl and a book. Albert Einstein declared of him: "Generations to come, it may be, will scarce believe that such a one as this ever in flesh and blood walked upon this earth."

5) Chapter 2 Checklist

• Religions are diverse in India, though 4 out 5 people are Hindu. Islam and Christianity are the other most common religions with large numbers of worshippers due to the huge overall size of the Indian population.

• Robert Clive was a clerk in the British East India Company, however he established himself as a superb leader of men in battle. Clive led the Company to many famous military victories that established their leadership
within India.

• The 1857 Mutiny was a rebellious uprising that caused a major threat to the stability of British rule. The rebellion took almost a year and a half to crush and resulted in Britain increasing its military might considerably. The Queen of England was crowned Empress of India and British rule became more regal than commercial.

• The 1919 Amritsar Shootings were a turning point in the history of India.Almost 400 people were killed as troops fired on a crowd, without warning. This event caused Gandhi to start his Non-Cooperation movement,
his first major steps against the British.

• Independence and Partition in 1947 was the event that Indians had fought to achieve for many years. Pakistan was created as a Muslim state, with newly independent India officially secular, though with a clear majority
of Hindu people.

• Jawaharlal Nehru was the first Prime Minister of India after independence from the British. Nehru had been an instrumental part of the campaign to free India, working for many years with Mahatma Gandhi.

• Mahatma Gandhi was the leader of the campaign to free India from the British. Gandhi had few personal possessions; his life was dedicated to his cause. He died at the hands of a Hindu assassin, a victim of his constant attempt to bring faiths together.Lord Louis Mountbatten was the final Viceroy of India, appointed by
British Prime Minister Clement Atlee to handle the process of independence.The Mountbatten plan was the agreed plan for partition and independence.

6) Chapter 3 Checklist
• The Attitude of many individuals to the government is often disdainful.The Indian government is seen as an elephant where a tiger is needed; however there are genuine signs of progress in the InfoTech sector.

• New Jersey has led the US states in proposing legislation that would outlaw the use of offshore facilities for public-sector contracts. Though these bills are being proposed, none have progressed to legislation yet, and are all restricted to the public sector only.

• European Union discussions have started along the same lines as the bills being proposed in the US. The EU is proposing to focus on redundancy and retraining, though it remains difficult to predict exactly what will be included in any future legislation.

• On the differences between the Congress and BJP election campaigns in 2004, India commentator Mark Tully said: "Appeals to religion, ideology or dynasty will not work. Indians want good governance and the development
that comes with it."33 Congress won by a good margin.

• Reform for growth is recommended by analysts such as McKinsey and most Indian business leaders would agree that reforms are needed if strong growth is to continue.

• Democracy came before social change in India, rather an unusual situation as most countries change internally and then demand a democratic structure of government. The general theory of modernisation states that political development should follow capitalist development.

•Poverty and illiteracy are still major problems throughout India. Regardless of the new found wealth of the past decade, these two major human issues remain and need to be addressed by the government

7) Chapter 4 Checklist
• Bollywood has laboured for many years under the stereotype of musical boy-meets-girl movies, but the output is impressive and some crossover to a mainstream western audience was seen in 2004.

• Music is usually linked to the film songs, but the more traditional styles of Indian music can be heard without looking too far.

• Literature is a strongpoint as India is famed for the quality of its English language canon.

• Food could be a good enough reason to visit India alone. The food is fantastic and is varied across regions with very few dishes reflecting the fiery curries sold as 'Indian food' in the west.

• Vegetarians will love India as it is a common practice to live without eating meat. This is so widespread that restaurants normally distinguish themselves as veg or non-veg.

8) Chapter 5 Checklist
• Size does matter. India is an immense nation. A visitor with meetings planned in several cities needs to consider the best way to travel.

• Air travel is the obvious choice for most executives. Indian Airlines, Jet Airways and Air Sahara all compete for your business on the major routes.

• The air travel market is becoming increasingly deregulated with new entrants such as Air Deccan and Kingfisher Air storming the market with new business models and deals for consumers.

• Rail is an alternative for low-cost long-distance travel, though the journey time may be excessive.

• Road is best for leisure or short journeys to neighbouring locations. Long distance road travel is not really an option as the interstate highway system is not as developed as the US Interstate network or European motorways.

9) Chapter 6 Checklist

• Pakistan and India are working together for peace. The negotiation process has been accelerated by the 9/11 terrorist attacks in the US and the US is assisting the peace process.

• Jammu and Kashmir remains the single most important dispute in India though in recent years the militant violence is more overtly linked to religion,rather than territory.

• Nuclear Arms are possessed by both India and Pakistan and many regional commentators believe that this threat has prevented conventional warfare.

• Al-Qaeda is an exclusively Arab organisation and does not have any major foothold in India.

• The IIF is also led by Osama bin Laden and several Pakistani militant groups are member organisations. Pakistan is attempting to ban these militant groups, but India is calling for US help to eradicate the terrorists. Natural Disasters plague certain areas of India with the most common being the regular flooding in Orissa State.

• Nationalism and Border Disputes exist in small pockets, however as the agreement with China over Sikkim has proven, India can negotiate mature agreements with its neighbours.

10) Chapter 7 Checklist

• No Logo and other books in the anti-globalisation canon are hostile to many organisations that use outsourcing; however the work of authors such as Naomi Klein is still worth reading. It is important to understand both sides of any debate and to ensure that your own organisation uses outsourcing as a business tool that respects and rewards the people in the vendor organisation.

• Governments across the developed world are playing a key role in managing the migration of people and controlling union demands.

• Globalisation in general is driving competition and allowing companies to seek partners anywhere, rather than in the same city or country.

• Technology is the key to the outsourcing revolution. Without the Internet and instantaneous global telecommunication systems, it would be impossible to work with teams of people in offshore locations.

• Corporate Strategy has looked hard at managing core competencies for many years, but the technology has finally caught up with the academic theory. Now it is possible to read the 1980s texts of Porter and Handy
and to apply the theory immediately.

11) Chapter 8 Checklist

• Infosys, Wipro and TCS are the big three technology companies in India. Many other companies are there and also offer a good service, but these are the giants.

• EDS, IBM, CSC, Unisys and Accenture are the main foreign players that are increasing their own footprint in India in order to leverage the benefits for their own clients.

• Business Process Outsourcing is the new mantra in outsourcing. Everyone wants to take over entire services (such as call or contact centres), whether they are IT or IT-enabled services. In 2004, the Indian BPO
market earned $3.5 billion.28 Evalueserve defined the term KPO and is now leading the high-value BPO services market.

• Wipro Spectramind and Daksh (now the IBM BPO subsidiary) are two leading lights in the BPO sector. Other major competitors in this sector include ICICIOneSource, Progeon, MphasiS, HCL, WNS, 24/7 Customer,
and EXL Service.

• NIIT has a fascinating delivery model. With their combination of education, technology and now the BPO delivery of NIIT SmartServe they are clearly going to become one of the major players in the market.

• Progeon is a company to watch. They are still relatively small, but with the muscle of Infosys behind them it will not be long until they are a major player in the BPO market, especially if they grow through acquisition.

12) Chapter 9 Checklist

• A 'captive' facility can be created in India in a number of ways. This subsidiary service-providing company works only for the parent organisation and the employees are a part of the same group, though the
company will usually invoice the parent as if it were a 'client'.

• Outsourcing differs from the captive model because the work in India is performed by a contracted company that has no relation to the client.

• Partnership pricing offers some interesting ways to tie the interests of both parties together. The use of methods such as gain sharing can encourage efficiency, cost saving and shared goals.

13) Chapter 10 Checklist

• Delhi and the National Capital Region is the capital city area and a natural home for many outsourcing organisations. Smaller cities close to the Delhi region, such as Noida and Gurgaon, are experiencing rapid growth as organisations base operations there - enjoying Delhi infrastructure without the traffic headache.

• Mumbai is home of the financial services industry in India and naturally a large cluster of outsourcing services have grown around the city to supply the Indian and international banks, fund managers and insurance
companies.

• Pune is a large city and home to many outsourcing organisations without the need for neighbour Mumbai, though many firms have leveraged on the proximity of Mumbai and higher quality of life for employees in
Pune.

• Kolkata retains the historical stigma of poverty, but is fast-growing as an alternative location for companies that want to work with India, but not at the Bangalore price.

• Chennai has great facilities, a nice lifestyle with the second longest beach in the world and large city facilities. It is also far easier to navigate than other comparable cities and has an international airport, making it one of the most attractive major cities in India today.

• Bangalore is the 'Silicon Plateau' of India and is home to some of the leading Indian technology companies.

About the Author

Mark is Global Research Director at Commonwealth Business Council Technologies in London. CBC Technologies leverages on the extensive government network of the Commonwealth Business Council, creating a three-way bridge between government, buyers of outsourced IT and ITES services and the vendor community. The development target for CBC Technologies is to promote global trade and investment for shared prosperity. Mark is also a non-executive director of fx Auctions pic and he contributes regularly to the media debate on offshoring,
with recently published articles in journals including the Financial Times, Computing,and The Association of Computing Machinery.

Mark is researching a new book with co-author Mahesh Ramachandran, Chair of the India Business Forum at London Business School. Titled 'Beyond BPO' this research analyses the development of business process outsourcing as a 'business as usual' strategy. Mark contributed a chapter on the future of offshoring to Technology
and Offshore Outsourcing Strategies (Palgrave 2005) and he is editing a collection of essays analysing how offshoring can impact developing nations.

Mark is a founder member of the British Computer Society working party on offshore outsourcing, which published a major study in November 2004. Mark is a Chartered Information Technology Professional (CITP) and Master of Business Administration (MBA), studying at the University of Liverpool. Mark is a visiting lecturer on International Management at London South Bank University.

Mark lives in London with his wife Nobumi and Staffordshire bull terrier,Matilda. He enjoys the theatre, cinema, ballet, the novels of George Orwell, listening to (loud) live music and battling the London traffic on a bicycle.

www.markhillary.com
www.outsourcingtoindia.net
www.bcs.org.uk
www.beyondbpo.com
www.cbctechnologies.com
www.lsbu.ac.uk
www.fxauctions. com
www.springeronline .com

Please take the time to visit these websites and offer your personal help to India:

National Literary Mission India - www.nlm.nic.in
Sankara Eye Hospital - www.giftofvision.org
Child Relief and You - www.cry.org
UN programme on HIV/AIDS - www.unaids.org