How Indian Offshoring has changed the product development industry
Indian offshoring or outsourcing has changed the way the Indian economy runs. We have become a knowledge based economy based on IT and Finance consulting. Offshoring in India has come of age. A research by McKinsey India showed that over the last 6 years the different performances of productivity and cost of delivery in different captive Offshore centres in low cost locations like India had made a Remarkable difference to the companies. Among the companies surveyed, there were around 250 such centres that were checked on the basis of performance across India and Philippines and around 1200 business leaders and managers expressed their level of satisfaction and delight regarding the quality of services and skills that they found in the centres.
Offshoring has come far away from being just a cost effective structure to being more of an asset building strategy. Offshoring has increased at a compounded annual growth rate of 13% since 2013. More than ten million people are employed with these offshoring centres across India in shared business services, IT, engineering and Finance. The important factor found in the survey was that more than 70% of the managers felt that the increase in the skill levels would entail moving a lot more services and functions to the captive units.