Friday, June 17, 2005

India 'outsourcing' to the US & Europe!

The air show in Paris has proved extremely fruitful for Boeing & Aribus. A huge pile of orders from Indian airline companies. There was a news item in one of the papers quoting Boeing & Airbus officials saying that thsi willr esult in a good number of jobs being created both at Boeing & at Airbus. The order book is above $30billion!

Compare this with a total software & ITES/BPO exports (outsourcing services provided) of about $30 billion! Now, what is the hue & cry about outsourcing? It is sheer trade, my dear watson. And trade is always 2 way. And one very obvious point forgotten when all hell is raised on outsourcing is that India imports much more than it exports. In effect US, Europe & other tradingpartners benifit more from Indian trade than India benifits from outsourcing.

Even more interesting is another tidbit of news I came across recently. IBM's total revenue from domestic (in India) biz is around $750million I believe. (Am not suprised as a few years back there was a multi $100million deal with just one company- Airtel- leading telco in India). Likewise, I heard Microsoft also does $250 million. Again not suprising as per Nasscom estimates the domestic sofwtare IT spend is about $8 billion dollars. And most of the infrastructure software is from the likes of IBM & Microsoft.

More to come on this...


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