From back office works, India has evolved towards knowledge and innovation hub, and expect more benefits not just for the nation but for global economy as well with the upcoming decade. As the Indian outsourcing employees continue to develop into world-class research and development (R&D) machines, the West was doing nothing. Meanwhile as the Americans are analyzing the Indian outsourcing, they envision that the call centres are just doing low-level technical support and IT companies are just fixing small errors in computer software. Undoubtedly, it is where the Indian oursourcing industry had started. the call centre operators are now providing various services such as optimization of financial transactions for Australian banks, they are now helping to enhance patient care for United States hospitals and for European engineering firms they assemble parts management. On the other hand, IT companies are creating next-generation telecom technologies, complex medical tools and mission-critical avionics systems.
India has quickly developed into innovation hub and global knowledge, in spite of the limitations dictate by the region’s weak infrastructure and obsolescent education system. To help Western companies fix the Y2K bug in their systems 10 years ago, Indian IT companies like Tata Consultancy Services Ltd (TCS), Wipro Ltd and Infosys Technologies Ltd were bidding for small contracts. Their customers didn’t have the skills to fix the problems that’s why Western companies sent their systems to India for solutions. The Indian outsourcing industry used the chance to create modern skills, elaborate operations and basically to know more about their clients. Indian companies used the opportunity to launch some platforms for huge projects and do more strategic ventures. Both sides gain benefits and the disaster in businesses was prevented.
India graduated only 76,000 engineers in 1999, and most of them did not get high-quality education. And by 2004 this number had doubled but the quality of the education suffered. However, the industry encountered several problems, even though the output of its engineering colleges was critically limited, it needed to hire hundreds of thousands of engineers. The Indian Institutes of Technology have less than 5,000 engineers each year, it produces world-class engineers. But the advanced types of engineering jobs in India required engineers with PhD-level and Master’s degrees. India has only 17,000 Master’s and 900 PhD graduates last 2004, and the PhDs isn’t enough to staff its growing universities. It caused fierce competition for competent talents that leads to salary increased and attrition rates. To overcome the problem, India set a solution to built their own surrogate education system. Some companies have created the capability to get the output of a weak education system and teach these workers to become R&D specialists who can face the global market.
Here are some of the things that Indian did to achieved the innovation, they hire competent employees, give training for their workers and they give continuous employee development. Aside from that, they also conduct managerial development and performance management.Because of that, Indian firms have gained some of the lowest attrition rates in the industry, and American IT firms commonly experience 20-30 percent for annual attrition rates. Indian talent supply has been able to cope up with the demands, Indian hired bright but largely inexperienced talent to productive R&D.
REFERENCE:
http://www.globalservicesmedia.com/Destinations/India/The-Innovation-Revolution/25/18/9744/GS100618548472
http://www.informationweek.com/news/global-cio/interviews/225200154
