More from the Mckinsey - Nasscom Report on India/Global IT & BPO Industry.

Indias Leadership position in the global offshore IT and BPO industries is based on 5 main advantages:

1. Abundant Talent
2. Urban Infrastructure
3. Operational Excellence
4. Conducive business environment
5. Growing domestic IT Sector

But for India to sustain its current leadership by assisting the growth of the offshore market and maintaining its current market share in the face of intense competition from locations like China, Eastern Europe & South Africa.To stay on top IT & BPO Players, the Central Government & The State Government together need to :

• Accelerate trade development efforts:
  
  
  • India must work with trading partners (through WTO etc) to streamline trade in professional services
    
  
  
  • India should also request source countries to further strengthen thier wage insurance and labour market programmes to cushion the impact of offshoring job losses.
    
  
  
  • More efficient professional worker visa regimes in source countries
  
  


• Improve Talent Supply:A potential shortfall of 0.5 Million qualified employees -nearly 70 % of which will be concenrated in the BPO industry, this gap can be bridged by the following initiatives:
  
  
  • Expanding the pipeline of people willing to join the industry
  
  
  • Improving the quality of the potential and current workforce
  
  
  • Better matching of jobs to people so that attrition is reduced
  
  


• Strengthen Local Infrastructure:India needs to deliver on both basic and business infrastructure
  
  
  • IT& BPO Industry will need atleast 5 new "Gurgaon-plus" and 5 to 7 new "Pune Plus" integrated twonships
  
  
  • Resulting burden on urban infrstructure is likely to be significant requiring breakthrough public-private partnerships and innovtive financing
  
  
  • Need to streamline current current infrastructure development process
  
  


• Drive Operational Excellence: Both offshore IT and BPO customers are now demanding "beyond cost" value propositions, sustaining Leadership will require India based players to drive down costs and improve quality. IT Services players will need to focus on
  
  
  • Enhanced customer interaction and solution delivery
  
  
  • Improve resource management
  
  
  • Upgrade support processes
  
  
  For BPO Players Nasscom and Mckinsey have jointly developed a benchmarking framework called 360(degrees) to help providers identify key operational gaps. The framework enables tangible improvements in output metrics by analyzing 14 different operational areas. High Impact areas are
  
  
  • Better Recruitment & Training Practices
  
  
  • Thorough transition management
  
  
  • Granular workflow management processes
  
  

Source: Mckinsey Report Executive SummaryPrashanth RaiTag(s):India, IT+Services, BPO