Posts tagged ‘Accenture’

  |  
13/07/2015

The Seven Signs of India’s Outsourcing Apocalypse – The Numbers – WSJ

After years of success, the outsourcing industry is under stress as the market shrinks and spending falls. Indian companies say their business models, built on cheap labor, are under threat from a shift to cloud computing, where clients ditch server rooms and bespoke software. Here’s how the outsourcing industry has shrunk in the past several years.

$120.4 billion

The value of outsourcing deals worldwide in 2014, down from $206.8 billion in 2010.

1,144

The number of outsourcing deals signed globally in 2014. The deals are down 61% from 1,805 deals in 2010, KPMG data shows.

$552 million

The average value of the world’s 100 largest outsourcing deals in 2012. Since then, the average size has fallen and was at $452 million in 2014, according to International Data Corp.

9

The number of outsourcing deals made in 2014 worth $1 billion or more, the lowest in more than a decade. Big outsourcing deals are rarer, and are being won by fewer companies – five of those deals were made by International Business Machines Corp., according to International Data Corp.

20%-30%

The amount Indian outsourcing contract values fall when they are renewed, according to Emkay Research. As the work gets scarcer, clients bargain harder on prices.

$21,307

The average annual salary of a software developer in India, according to job search website Naukrihub.com. That’s in contrast to the $93,350 average annual salary of a developer in the U.S., according to the Bureau of Labor Statistics. Outsourcing companies say that clients are demanding quicker results and fewer, more experienced staff, forcing Indian outsourcers to hire more in the U.S. and Europe. As a result, Nasscom estimates that only 200,000-220,000 outsourcing jobs will be added in India in 2015 compared with 273,000 new jobs in 2011.

More than 50%

Amount revenue growth at India’s outsourcing giants has fallen since 2008. Tata Consultancy Services said sales grew 15% for the financial year that ended in March, compared with the financial year ending March 2008 when sales grew 37%. Infosys said revenue rose 6% last financial year, down from 19% growth in 2008.

via The Seven Signs of India’s Outsourcing Apocalypse – The Numbers – WSJ.

Posted in Economics, India alert, Offshoring, Outsourcing | Leave a Comment »

Tags: , , , , , , , , , , ,
23/05/2014

Will New Delhi Be Able to Translate Modi’s Gujarati Guidelines? – India Real Time – WSJ

As India waits for prime minister-designate Narendra Modi to take charge in New Delhi, many are wondering whether he can reproduce the policies that powered growth in his home state of Gujarat.

While the western state has long been one the richer states in the country thanks to a populace packed with entrepreneurs, it prospered even more than usual under Mr. Modi’s rule as chief minister for more than a decade.

Companies say with his leadership the state has cut corruption and restrictions on doing business. Meanwhile its networks of roads, ports and power plants are among the best in India and have even convinced some companies to move operations from other states to Mr. Modi’s vibrant Gujarat.

“He is a very good administrator and he will try to replicate the same model he had in Gujarat at the national level,” said Gautam Singh, an economist at Spark Capital.

The source of power behind Mr. Modi’s magic is debatable but most agree it comes from his ability to simplify government and set deadlines as well as his facility to push through unpopular policies.

Like he did in Gujarat, he is expected to streamline the number of departments and different ministries to make his entourage of key policymakers more nimble and powerful. In New Delhi, Mr. Modi will likely combine related ministries such as coal, renewable energy and petroleum for better policy implementation, said Mr. Singh.

One of the biggest successes of Mr. Modi was in energy, which has made Gujarat one of the few states in India with a power surplus.

Across India, power companies are often forced to give away power and depend on massive state subsidies. They are also hurt by theft during transmission and distribution. With little incentive or money to expand, the power generating and distributing companies have failed to keep up with demand. The resulting frequent power interruptions force other companies to set up their own expensive, captive power-generating units.

Gujarat has been able to cut power subsidies where many states haven’t been able to muster the political will to do so. It separated the power supply lines for households and farmers, helping target power subsidies. This meant non-agricultural users had to pay higher tariffs but they received a more reliable power supply.

While Mr. Modi was in charge, Gujarat took steps to ease India’s ridiculously restrictive labor laws which make it difficult for larger companies to hire and fire people as they please. Gujarat used its own version of special economic zones to promote industry. In these zones companies were given more freedom to adjust their workforces depending on demand.

One Goldman study suggests that if a similar easing were to be applied across India, 40 million jobs would be created in the next ten years.

Land acquisition is another perennial problem for companies as well as local governments as they look for spots to build facilities and infrastructure. While businesses wanting to set up operations in most states have to go through tedious procedures to get land, Gujarat has been able to significantly cut down on the red-tape by building a huge land bank that was earmarked for setting up industrial units. A recent study by Accenture to identify best practices in different states showed Gujarat’s policies were indeed helping. It now takes just 45 days for applicants to get possession of land in the state, the study showed.

via Will New Delhi Be Able to Translate Modi’s Gujarati Guidelines? – India Real Time – WSJ.

Related articles
Enhanced by Zemanta

Posted in Economics, India alert, Politics | 4 Comments »

Tags: , , , , , , ,
02/03/2014

India Wants to Build Its Own Chips to Satisfy Electronics Demand – Businessweek

India’s IT services companies are tops in outsourcing, with Tata Consultancy Services (TCS:IN) and Infosys (INFY) competing globally with IBM (IBM) and Accenture (ACN). The cities of Bangalore and Hyderabad are well established as research centers for such multinationals as Microsoft (MSFT), General Electric (GE), and Intel (INTC).

Pedestrians pass in front of smartphone wholesale outlets at Gaffar Market in New Delhi on April 9, 2013

But when it comes to hardware, India is behind. In 2013 it imported $33.5 billion worth of electronics, from semiconductors to smartphones. That’s more than it spent on any imports except oil and gold. With India’s large and growing middle class buying more digital devices, the reliance on imported semiconductors and other hardware is likely to increase. By next year, according to market analysts Frost & Sullivan, such imports will top $42 billion. “Our manufacturing has not kept pace with our consumption,” says PVG Menon, president of the Indian Electronic & Semiconductor Association. India does some assembly of TVs, mobile phones, computers, and set-top boxes.

The government of Prime Minister Manmohan Singh is trying to address this technology gap. The Indian cabinet on Feb. 14 approved plans for two semiconductor manufacturing projects, requiring an investment of $10.2 billion, with IBM, Geneva-based STMicroelectronics (STM:FP), and Israel’s Tower Semiconductor (TSEM:IT) taking part.

via India Wants to Build Its Own Chips to Satisfy Electronics Demand – Businessweek.

Enhanced by Zemanta

Posted in Economics, India alert, Manufacturing, Technology | Leave a Comment »

Tags: , , , , , , , , , ,
  |  
CCChang

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India