IEGC Reference | Information Technology | Outsourcing

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  1. INTRODUCTION OF INFORMATION TECHNOLOGY  Information technolo!  ( IT ) is the study, design, development,implementation, support or management of infotech . Informationtechnology is a general term that describes any technology that helps toproduce, manipulate, store, communicate, and/or disseminate information.Information refers to data that has been organized and then communicated.Information technology is a broad term used to refer to any form of technology used to create, transfer, or store information in all of its variousforms (text, images, sound, multimedia les). he term I encompasses the methods and techni!ues used in informationhandling and retrieval by automatic means. he means include computers,telecommunications and oce systems or any combination of theseelements.Information technology, #hile stirring thoughts and visions of net#or$s, theInternet, server rooms, rac$s of s#itches and routers, and advanced terms,the %technology% doesn%t necessarily refer only to computer related issues.&ny medium that stores and processes information is also in the category of information technology.  he bac$'story of information technology precedes the invention of thecomputer. he abacus, used by &sians, gyptians, omans, and the *ree$can be termed a source of information technology. +alculators, the rstmechanical one built by *erman polymath ilhelm -chic$ard, or the sliderule, developed in 00 by illiam 1ughtred, also comes under the headingof information technology. &nother example #ould be punch card machines,expanded upon by I23 in the early to mid 455%s, !ualies the terminformation technology. 1.1 re#Hi$tor! of Information Technolo!   *. 2oole developed a mathematics of true values, logic   +harles 2abbage invented a computing machine based on mechanics,e.g. cog#heels   +ountess &da 6ovelace programmed 2abbage7s invention8 %r$t&rorammer   6ooms #ere automated in the 9 th  century  &s time progressed along #ith the advances of inventions and applied$no#ledge, computing too$ shape and became useful in a variety of #aysother than calculations. +omputer science became an academic specialty,creating computer science departments and classes. &s these classes too$shape, separate branches of computer science became distinct areas of study. oday, Information echnology departments use computers, datacenters, servers, database management system, specialized soft#areapplications and more, managed by system and database administrators. 1.' A()ent an( De)elo&ment of Information Technolo! inIn(ia  oday India is $no#n #orld over as a leader in Information echnology. hishas not happened over a short period of time. & sustained e:ort by theIndian *overnment, corporate houses, and universities has made thispossible. It all started #ith a small group of initiators #ithin the governmentand entrepreneurs outside the government sensing the opportunities inInformation echnology. &fter a certain passage of time the governmentcame up #ith full support to change the environment for I. hus began aseries of steps that transformed I from being ;ust a sector to an Industry.  ransformation of Information echnology< From To I as a sectorI as an Industry=roviding satisfactory services toexisting increases in demand&dding value to sustain the gro#th*overnment controlledinfrastructure and technology*overnment facilitatedinfrastructure and technologyI for specialistsI for masses>ullling external demand+reating internal demand he most important thing that came out from this #as the advent of information technology as an industry. In the beginning I #as treated at par#ith conventional manufacturing industry, but later on it started receivingthe necessary support as a non conventional service industry. ?ational&ssociation of -oft#are and -ervice +ompanies (?&--+13) #as establishedin 499 as the business strategist of Infoech for the *overnment of India.?&--+13 is dedicated to framing policies that focus on the interdependence  of business opportunities and social environment. he main focus of ?&--+13 for I is to ã &dd value to I as an industry ã  a$e I to the massesven before this time, during the erst#hile license ra;, ata +onsultancy-ervices 6td #as established #ith 3r. > + @ohli at the helm. 3r. @ohli is manytimes referred to as the father of Indian -oft#are Industry. 3r. @ohli #as therst person to tal$ about andem, rst to import an I23 A545, rst tomaintain that mainframes are not dead, and to !uestion the openness of open systems'even before most of the #orld addressed these concerns.  he birth of soft#are industry in India began in 4B5 #ith the entry of ata+onsultancy -ervices 6td (+-) into the domain of outsourced applicationmigration #or$. In the late 457s ata7s created +- as a central servicecenter for && group companies. & fe# 3I trained Indian professionals#ere recruited and a large computer system #as imported. ith I23 havingbeen thro#n out of India, the concept of outsourcing applicationdevelopment #or$ had become a necessity for Indian companies. Ctilizing itsexcess computer capacity, +- began doing outsourced application #or$ fororganizations such as +entral 2an$ of India and 2ombay elephones. ithin afe# years +- began sending young Indian engineers to a ;oint venturepartner in the Cnited -tates, 2urroughs for training. he trainee engineersexcelled at doing platform conversions and +- started earning conversionassignments for its engineers in *ermany and else#here. >ollo#ing thesuccess of +- many ne# companies #ere set up in India. During the years49'49E, four type of companies interlin$ed in direct and indirect #ays tofacilitate body shopping (Indian engineers going overseas to do soft#areprogramming onsite). here #ere established companies li$e +- and Infosys echnologies #hich supplied programmers to large multinationals in Iprimarily in the C-. hese multinationals also recruited programmers throughlocal C- companies established by Indians living in the Cnited -tates. -uchcompanies in turn recruited manpo#er through local search agents (smallcompanies run by Indians living in the Cnited -tates). hese agents fromseveral states in the Cnited -tates #ould contact local agents in India from amultitude of small companies and operators. he responsibility of collectingresumes, for#arding them to C.-. placement agents preparing visa andcontract nalization #ith the programmers #as done by the agents in India. he programmers #ere paid lo# #ages. +ommissions #ere charged by  di:erent members of the supply chain. -ometimes there #ere subagentsspread in di:erent cities and to#ns in India. here #as an interestingnet#or$ among revolving players. =rogrammers #ho returned to India after astint overseas #ould ;oin a pool of soft#are engineers #ho could be hired bythe established companies in India. 1ften programmers sent onsite by largeIndian companies #ould move laterally to another assignment in the Cnited-tates through a local C- agent to prolong their C- experience. 6ater they#ould return to India and be in the mar$et for local Indian agents to hirethem. he Indian Diaspora had played a $ey role in the bodyshoppingexports. -everal reports also suggest several instances #here Indianimmigrants in the Cnited -tates helped C- buyers to locate Indian suppliers.>ield intervie#s #ith C- customers reported that the impetus for outsourcingto India came from employees of Indian origin. 2odyshopping #as andcontinues to be an attractive strategy for ne# entrants into the industry,re!uiring nothing more than $no#ledge and established relations #ith fe#potential clients. 1.* The Era of O+t$o+rcin hile initial development of India7s soft#are industry #as based primarily onbodyshopping #or$ onsite at C- rms, in recent years the trend has beenincreasingly for Indian rms to conduct soft#are development for C.-. clientsFo:shoreG in India. his shift #as the result of a maturing of India7s soft#areindustry and its international reputation over a decade and a half and thedevelopment of necessary infrastructure and communications technologiesin India that has made o:shore #or$ possible. &s the Indian soft#areindustry matured, increasing client condence in Indian capabilities and!uality standards enabled Indian rms to move their #or$ o:shore. ithmaturity has come a goal to move up the value chain. 3any ne# companies#ere set up in the 4957s by entrepreneurs #ith ambitions of creating #orldclass soft#are development centres. >irms #hich had started primarily assubcontractors for technical manpo#er gradually shifted to managingcomplete parts or phrases of pro;ects and then to delivering completesolutions from India. During this phase most companies made signicante:orts to assimilate good practices in pro;ect management and !uality andto ac!uire internationally recognized !uality standards certication.?&--+13 played an aggressive role in promoting the India brand abroad. Insome #ays, during this period, India #as building a launching pad for theeventual ta$e o: of its soft#are service industry.
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