SWOT analysis on Indian ITeS sector

Strengths
o Highly skilled, English-speaking workforce.
o Abundant manpower
o Cheaper workforce than their Western counterparts. According to Nasscom, The wage difference is as high as 70-80 percent when compared to their Western counterparts.
o Lower attrition rates than in the West.
o Dedicated workforce aiming at making a long-term career in the field.
o Round-the-clock advantage for Western companies due to the huge time difference.
o Lower response time with efficient and effective service.
o Operational excellence
o Conducive business environment

Weaknesses
o Recent months have seen a rise in the level of attrition rates among ITeS workers who are quitting their jobs to pursue higher studies. Of late workers have shown a tendency not to pursue ITeS as a full-time career.
o The cost of telecom and network infrastructure is much higher in India than in the US. o Manpower shortage
o Local infrastructure
o Political opposition from developed countries Opportunities
o To work closely with associations like Nasscom to portray India as the most favoured ITeS destination in the world.
o Indian ITeS companies should work closely with Western governments and assuage their concerns and issues.
o India can be branded as a quality ITeS destination rather than a low-cost destination.
o $69 billion ITeS business by 2010 o $97.5 billion IT (consulting, software solutions) market by 2010

Threats
o The anti-outsourcing legislation in the US state of New Jersey. Three more states in the United States are planning legislation against outsourcing Connecticut, Missouri and Wisconsin. o Workers in British Telecom have protested against outsourcing of work to Indian BPO companies.
o Other ITeS destinations such as China, Philippines and South Africa could have an edge on the cost factor.
o Slowdown of demand