India Inc To Lose $21bn In IT Investments

by CXOtoday Staff    Dec 15, 2003

According to a report published by the Confederation of Indian Industry (CII), India’s poor infrastructure could result in a loss of $21 billion in IT investments to its competitors in Asia.

The projected loss is being viewed as a major threat to the realization of India’s 2008 IT vision.

The report stressed the need for adequate infrastructure, in the form of a national backbone, and underlined the urgency to integrate telecom policies for rolling out data transmission, and rationalizing the tariff structure for bandwidth.

A significant area where the country lacks appeal to IT investors, is its expensive long distance bandwidth rates, a critical factor for the growth of IT-enabled services, the report said.

Immediate connectivity is a pre-requisite, essential for the ITeS business in all customer services and mission-critical applications that require 100 per cent standby power back-ups, mirror data centers and high bandwidth from service locations, the paper said.

Also, downtime in Indian telecom networks varies between 3-15 per cent, as against the global benchmark of 0.1 per cent (See related article on Network downtime by CXOtoday).

For services like call centers, the ’Americanized’ Indian accent is proving to be a major disadvantage in operating voice projects out of India. Call centers incidentally, hold the largest market segment in the ITeS chunk today. Though the cost of operation is significantly lower in India, customer satisfaction levels have tended to be rather low in call centers and medical transcription services, the paper said

Tags: Loss, CII