Lowering Costs and Improving Quality
DTC Systems enables Israeli companies to grab a share of India's global outsourcing success story, whose crowning achievement is:
lowering costs and improving quality.
Indian companies have had amazing success and growth in the area of outsourcing. Their revenue from software sales and services to foreign companies totaled 17.2 billion dollars in the 2004-2005 fiscal year. This figure constitutes a 34.5% increase compared with the previous year's revenue (see CNET News).
The growth encompasses all related areas: call center services, form processing, software with relatively simple components, data processing, product development, R&D, etc. In the product development and R&D category alone, Indian companies' revenue jumped from $2.3 billion to $3 billion.
While US and British remain the dominant markets, the Indian software companies are breaking into new markets such as Germany, Japan and Singapore.
A Forster market study published in the Israeli daily, Haaretz, revealed that, over the next decade, the US would lose 3.3 million jobs to cheaper countries. It also concluded that Europe would lose some 1.2 million jobs to sites and subcontractors operating in cheap-labor countries such as India, Russia, China and Poland. The greatest blow will be suffered by the high-tech industry: More than a quarter million jobs in the information systems field will be transferred to countries offering cheaper labor.
According to the study, other European countries such as Greece, Portugal and Ireland (where the wage level is substantially lower than average for the entire continent), will experience a loss of only several thousand jobs over the next decade. However, although England will suffer the greatest loss of jobs, Forster predicts that, of all places, that country will gain in the long run and enjoy an economic upsurge and competitive edge in the European market. Forster further predicts that countries that put off transferring jobs to cheaper countries will suffer from competitive inferiority in the market, and the companies in those countries will be forced to merge or be sold in order to maintain their competitiveness.
At DTC Systems, we believe that if Israeli companies utilize India's development capabilities, they will gain a competitive edge and be able to expand their activities and maximize profits.
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