Unveiling the prowess of Indian outsourcing companies not only as a cheaper, better and faster destination but also a source of innovation, the Confederation of Indian Industry (CII), on Tuesday, began its two day event ‘Smart Outsource Expo &Summit 2014, Enhancing Business Excellence through partnerships’.
Speaking during the inaugural session of the summit, CII Karnataka Chairman Sandeep K Maini said with the exponential growth of the global outsourcing industry, India has made a mark of its own globally.
“The dynamics of global business are changing, and outsourcing is no different. As markets worldwide are becoming knowledge-intensive, India has evolved to become the most preferred destination for knowledge services,” said Maini. Banking on its skilled manpower, he said India developed knowledge process outsourcing as the biggest revenue generator and thus strengthened its position in the knowledge service industry.
Speaking on the MSME sector which comprise 75 per cent of Indian industry, Maini said small enterprises often look at outsourcing as being too expensive and beyond their means, however in reality it’s just the opposite. “India has a great many young companies that have an affinity towards building great global brands for which people are the key stakeholders and it is important to engage them better,” he said.
Besides the conventional IT and ITES, domestic and global outsourcing market has expanded to include engineering and design, talent management, the digital edge of marketing, logistics and supply chain management, technology, operational and infrastructure management among others.
The summit is dedicated to help businesses think about how they can leverage partnerships and external expertise to enhance their own capabilities, improve profitability as well as products and services. As per Nasscom study, IT-BPM industry is set to aggregate $118 billion in the current financial year.
Speaking at the summit, Commissioner for Industrial Development & Director of Industries and Commerce, Government of Karnataka, M Maheshwar Rao, IAS said, the advantages in India for outsourcing can best be illustrated as four pillars like skill, efficiency, growing flexibility and service.
Rao said that in the near future the outsourcing trend will drift towards domestic companies looking inward and start outsourcing their high-end knowledge as well. “The future of outsourcing is not just restricted to IT and ITES.
It will include sectors like IPR, business research, analytics, legal research, clinical research, publishing, market research etc. Specialised outsourcing services will allow organisations to focus on their core businesses so that they can increase revenue and improve bottom line,” he said.
According to Rao, the industry is slowly getting back to normalcy in Karnataka and the biggest gainers are textile industry and the food & beverages industry which registered growth (Index of Industrial Production, year-on year) of 4.65 per cent and 4.76 per cent respectively.
“The expected implementation of the State Industrial Policy (2014-19) and Infrastructure Policy will reflect positively on industrial development of the state and the state industry will see robust growth in the next 2 to 3 years,” he said.