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Benefits of Outsourcing IT to India - Infrastructure

Infrastructure that is of importance in the IT industry includes telecommunications, electricity, access to computers, number of Internet hosts, number of ISP's and available bandwidth and broadband access.

Communications

Communications is one of the critical infrastructure requirements of a country. India, with its one billion people, over 500 districts, around 5,000 villages and large metropolitan cities having population equivalent to that of many countries needs an extensive infrastructure to serve such a population.

India operates one of the largest telecom networks in Asia with 1,23,000 route km of optic fibre cables network. As of the beginning of 2000, there were 28 million telephone lines in the country -- approximately 50 people to every landline and 33 people to every cellular telephone line. The density of available lines is much higher in cities than in the remote villages. At present, the density in rural areas is equal to 0.5 lines per hundred. Approximately 60% of Indian villages have village telephone lines.

The Department of Telecommunication (DOT) until 1994 was the only telecom provider in the country. With the deregulation of this sector, various private players have come in and improved not only the services but also cut down on costs.

Telecom bandwidth issues have also been addressed. Many private ISPs have come in this sector and telecom costs have dropped by 85 percent in 3 years.

Power

Power availability has also improved dramatically and has become more consistent throughout the country. All 21 Software Technology Parks (STPs) across the country have installed dedicated substations and genstations for 100 percent backup. Non-STPI locations have readily available generators and UPS. Most state governments have plans for power reform (e.g. privatised distribution in Mumbai (BSES)) and are becoming power surplus, e.g., Andhra Pradesh.

Education System

India has emerged as one of the top IT resource providers, mainly due to its ability to churn out highly skilled workers every year. The Indian school education system places great emphasis on mathematics and science, resulting in a large number of sciences and engineering graduates. The English medium of education also helps in nurturing top class English speaking resource.

Government institutes such as Indian Institute of Technology (IIT) and Indian Institute of Management (IIM) churn out quality graduates every year. There are a large number of other government and private institutes, all over the country, which help augment this process.

Learn more about the advantages of India as an Offshore Destination


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