More reports on: Nasscom
Indian IT enggineering, R&D market to reach $40-45 billion by 2020: Study news
21 May 2010

The Indian IT industry, which enjoyed a huge cost advantage as an offshoring destination making over $50 billion catering to overseas clients is keen to drop the 'offshoring' tag, thanks to the political overtones to the term in the global market, according to the software body Nasscom.

"The word offshoring has lost its meaning and is getting off the vocabulary of our members and customers. This is getting replaced by 'global sourcing', which is already happening; they want to get things done wherever it makes sense for them," Nasscom president Som Mittal told the media in Bangalore today. He added that clients came to India not due to the cost arbitrage on account of salary rather due to the 'resource arbitrage' in terms of sourcing quality manpower.

Mittal said 'offshoring' has lost its significance with India and other destinations in the Asia-Pacific (APAC) region are being no longer offshore destinations for clients, mostly as their biggest market. He said that product and solutions developers for local markets, consider it as an onsite inline with the manner in which Indian IT services providers consider countries like the US when servicing global customers. Mittal added that clients always wanted to get their work done in locations which made business sense.

According to a recent study, the number of people in the 15 to 59 age group is steadily declining in countries like Switzerland, Germany and Austria which was the reason they were struggling to get students into colleges and much the same state of affairs prevailed in US and most European countries.

US president Barack Obama had suggested that more Americans should be going to technical colleges and study mathematics. Recently, Nasscom's European counterpart Digital Europe has launched a major initiative to persuade schools to lay more emphasis on mathematics.

Meanwhile, the industry body in association with consultancy firm Booz and Company, yesterday released the findings of the study ''Global engineering research & development: accelerating innovation with Indian engineering'' at the Nasscom engineering services conclave in Bangalore.

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Indian IT enggineering, R&D market to reach $40-45 billion by 2020: Study