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India to remain offshoring destination of choice, says Infosys
Even doctors still interested in BPO

By Tony Hallett

Published: Monday 17 November 2003

Despite a range of challenges, India isn't about to be overtaken as the top location for offshored IT and other business activities, according to the co-founder of the country's best-known tech success.

Speaking to silicon.com Kris Gopalakrishnan, COO and co-founder at Infosys, maintains that price and quality of work aren't India's - and Infosys' - only advantages.

Keeping salaries low is key to keeping offshoring attractive and there are those that say facilities and jobs - for IT, software development and business process outsourcing (BPO) - will go to other locations the more successful India becomes.

Recent research shows some 40 per cent of software development is taking place offshore now but Gopalakrishnan said that other potential rivals, such as China and Russia, don't have the same English language skills as India, and some that do, such as the Philippines and Sri Lanka, don't have a sufficient number of recruits.

"Today, we have a lot of supply," he said. "Even BPO jobs are seen as aspirational jobs to have."

Transcribing medical notes is a common offshore activity, often carried out overnight from businesses in the UK and US, and it has been known for doctors in India to move into such BPO work because of better pay and conditions.

Infosys now employs around 20,000 staff around the world and is set to reach $1bn in annual revenues by next spring at a growth rate in excess of 35 per cent per year.

However, Gopalakrishnan paints the picture of a company torn between policies that further Infosys' own business - clearly one that is doing well as more jobs move to India - and those that mean overall improvements for the country. For example, with the rupee appreciating, the cost of India-based services becomes more expensive but the price of essential equipment bought overseas - for developing national infrastructure - typically falls.

"Overall, developing the country is beneficial to us all," he added.

Infosys now has eight major offices around India and will be expanding further around the world. It recently announced its Rapid Offshoring Framework but remains sensitive about which Western companies it is working with.