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India: Favoured Destination Choice for Off-shoring / Outsourcing

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When, companies worldwide wish to turn back their fortunes by retaining profits, the first thought that springs to mind is cutting costs without losing on quality, and instantly, off-shoring / outsourcing to India becomes the first choice. Time and time again, India has proved its grit in each field that made its off-shored / outsourced way to Indian shores. Once again, India is set to lead the way in the fast emerging off-shoring / outsourcing trend of Product Engineering Services(PES) Still in its infancy, PES has fired the imagination of Indian IT majors i.e. Tata consultancy Services (TCS), Wipro and Patni Computer Services (PCS). PES can be defined as a service that links new product creation, while maximising both its output and lifespan. NASSCOM estimates PES off-shoring / outsourcing including embedded software and product development to become an $8 - 11-billion business by year-2008. Before branching off as a separate field, earlier PES was a part of IT research and development or IT enabled service-business process off-shoring / outsourcing (ITeS BPO), in other words, engineering BPO. Conversely, increasing consumer demand for electronic products, shorter time-to-market cycles and competition forced PES to emerge as a single entity.

The importance of PES can be gauged from the fact that Wipro and PCS, in order to meet business requirements have enrolled 10,000 / 1600 dedicated engineers on their payroll, respectively. Apart from consumer electronics, field that has large scale adoption of embedded technology, medical electronics, automotive and computing fields offer significant opportunities, factors which seem to be driving the growth of PES off-shoring / outsourcing. Nowhere, is the

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significance of PES more noticeable than in the semi-conductor chip market, where more and more, designing software is beginning to play a crucial role. Increased digitalisation of business enterprises has resulted in a strongly linking engineering and business information management. Common enterprise management application and technology platforms have led information integration to include product engineering and production facilities, as well as effective and efficient management of production and capital assets.

Off-shoring / outsourcing deals are forever destined to come to Indian shores because India not only can deliver technology services to global clients at great value and speed, it has a vast pool of scientific and engineering talent that can be tapped to make the sector grow.

Off-shoring / outsourcing PES services to India has many benefits for companies who off-shore / outsource, wanting quality products at reduced rates, at reduced costs, on company budgets that can be met with shorter time-to-market timelines. In the long-term, off-shoring / outsourcing benefits always bounce back to company clients as they can buy quality products for less money, short time-to-market timelines means they can buy the latest innovations, almost as soon as they are conceived.

Off-shoring / outsourcing benefits all, as the wheel of fortune comes full circle i.e. back to the countries that off-shore / outsource!



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