K the three top criteria for selecting a location are

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Unformatted text preview: erent country, according to Sriram Prakash, a senior manager with Deloitte U.K. "The three top criteria for selecting a location are cost, availability of skills and scalability," asserts Prakash, who says India still has the advantage in terms of scalability. It also is important to consider political stability, adds David Rutchik, partner with Pace Harmon, a San Francisco- and Washington, D.C.-based outsourcing advisory firm. "Another [consideration] is basically respect for the rule of law," he notes. Depending on the desired outcome, though, various regions can offer unique opportunities for outsourcing business, let’s see through some mandatory requirement and where our country stands with its competitors in providing them. 1. InfrastructureReal estate-Infrastructure is one of the key attribute for location analysis for outsourcing. Both India and its close competitor China is investing significantly in their infrastructure. But still due to of management and technical inefficiency India is lagging far behind than china. Statistics says to sustain the driving force for improving infrastructure in urban and rural districts, India has allocated `1, 73,552 crore for infrastructure growth in the country in budget 2010. However the money invested is not fulfilling its motif, India still suffers from serious deficit in infrastructure, particularly in roads, ports and power generation facilities. In the World Economic Forum's Global Competitiveness Report 2009-2010 China's at 66 and India's at 89 out of 133. At present only just more than half of the India has access to electricity and paved roads connecting only 50% of the country while it is more than 95% in China. So we can say china has an upper hand in infrastructure. Technological readiness-India has Top-notch IT infrastructure within technology parks and on major IT campuses and Bangalore the silicon valley of India invests its every square inch for development of this business. However in internet access which is a good indicator of technological readiness of the broader population, India scores lowest here when compared to its competitors. Canada and the United States are clear leaders with about three-quarters of the population. Malaysia and several European countries are also in leadership positions with about 50% or more of the population with subscriptions. India and the Philippines have poor access with less than 10% and china ahead of us having 23% of the population as internet subscribers. 2. Skilled work force- India’s demographics and history have positioned it well to take advantage of the new global services market. India is considered one of the top o...
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