Emerging India has evolved from the world’s back office into a knowledge and innovation hub. In the next decade, expect benefits for not just the nation but the global economy
When Americans think of Indian outsourcing, they visualize call centres doing low-level tech support and information technology (IT) companies fixing bugs in computer software. Indeed, that is where the Indian industry got its start. But while the West was literally sleeping, Indian outsourcers evolved into world-class research and development (R&D) machines.
Its call centre operators are now helping enhance patient care for US hospitals, optimize financial transactions for Australian banks and streamline parts management for European engineering firms. Its IT companies are developing mission-critical avionics systems, next-generation telecom technologies and complex medical devices.
Despite the limitations imposed by the country’s weak infrastructure and antiquated education system, India has rapidly evolved into a global knowledge and innovation hub.
Just 10 years ago, Indian IT companies such as Infosys Technologies Ltd, Tata Consultancy Services Ltd (TCS) and Wipro Ltd were bidding for small contracts to help Western companies fix the Y2K bug in their computer systems. Their customers were desperate to fix this ticking time bomb, but didn’t have the manpower or skill to do it. So despite severe hesitations, Western companies sent their mission-critical systems to India for repair.
Indian outsourcers used this opportunity to expand operations, build new skills and, most importantly, get to know their customers. The catastrophe was averted, and both sides benefited. Indian firms used this as a launching pad for bigger projects and entry into more strategic ventures.
