An in-depth Study on the Animation Industry - Philippine Institute for ...

But outsourcers are not just look<strong>in</strong>g for one-off projects. Their goal is to form
close work<strong>in</strong>g relationships with their customers lead<strong>in</strong>g to the creation of full offshore
development centers. This is a semi-permanent operation under which the outsourcer
recreates the client's z systems environment <strong>in</strong> India and works on system
development.
The environment is both physically secure and <strong>in</strong>tellectual property is protected
by, for example, not allow<strong>in</strong>g the staff to transfer between accounts with<strong>in</strong> the
outsourcer. But it is not all one-way traffic. The Indian software development <strong>in</strong>dustry
is expand<strong>in</strong>g rapidly, but it still exercises discretion <strong>in</strong> decid<strong>in</strong>g which companies to work
with. For Wipro's stipulations <strong>in</strong>clude:
* the client must have an adequate <strong>in</strong>vestment <strong>in</strong> IT - the m<strong>in</strong>imum will vary depend<strong>in</strong>g
on the size of the outsourcer.
* the work must be outsourceable.
* the client must be committed to outsourc<strong>in</strong>g - one-off projects are not the core
bus<strong>in</strong>ess.
* the outsourcer must have adequate strength <strong>in</strong> the skills needed, although it may be
prepared to acquire the know-how either to get the overall bus<strong>in</strong>ess or because it wants
to develop the skills required.
* the client must have well-documented work<strong>in</strong>g processes, tools and methodologies.
Where the needs of the user and the requirements of the developer are satisfied,
there is the potential for a lengthy and mutually beneficial partnership. Indian
outsourcers cont<strong>in</strong>ually stress their desire to forge long-term relationships which allow
the full benefits of jo<strong>in</strong>t work<strong>in</strong>g to be realized.
A fully fledged offshore development center operates as a virtual extension of the
client's operation, with clones of all the hardware and the network runn<strong>in</strong>g seamlessly to
the client's offices. It extends the work<strong>in</strong>g day by four-and-a-half hours, and will be
housed <strong>in</strong> a dedicated office with its own security arrangements. It can take a number
of years of work<strong>in</strong>g together and build<strong>in</strong>g trust to reach this level of <strong>in</strong>tegration, but the
numbers of companies progress<strong>in</strong>g to this stage shows that the benefits make it
worthwhile.
The client list of Indian developers reads like a who's who of the <strong>in</strong>dustry. Most of
the large technology companies have their own development operations <strong>in</strong> India,
although it is true that so far, the most significant customers of Indian outsourcers have
been the very largest users <strong>in</strong> the Times and Fortune 500.
Technology workers <strong>in</strong> India are paid 80% more than their skilled counterparts <strong>in</strong>
other <strong>in</strong>dustries. While start<strong>in</strong>g salaries can be as low as 150,000 rupees a year (about
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