nohitatu technologies private limited
# 402, 4th Floor,City centre,
186/43 Purasawalkam High Road,
Chennai - 600010, Tamilnadu, India.
General Information :
+91 - 44 - 43574131
Business Development :
+91 - 9941 333 444
+1 (315) 506-4555
+91 - 44 - 30400002
Outsourcing! Why India
The world is discovering the fact that India is a super power when it comes to developing IT solutions. Swept by the current of the latest trend "IT outsourcing to India", we find many fortune 500 companies like Microsoft, Oracle, Citibank, Morgan Stanley, Wal-Mart, AT&T, General Electric, Reebok, General Motors, Sony, Boeing, Coca-cola, Pepsi, Swissair, United Airlines, Philips, IBM, Lucas and British Aerospace are outsourcing software development to India.
A closer look at the factors fanning the potentials of IT outsourcing in India.
1. India's human resources
Being the world's second highly populated country, human resources are a boon by itself. Just as the Gulf is renowned for its natural resource of crude oil, and South Africa for its diamonds, India is proud of the abundance and easy availability of its highly qualified and technically skilled English speaking computer professionals; who are key to success in the field of IT outsourcing to India.
2. Cost efficiency of IT outsourcing in India
Significant cost saving can be achieved by IT outsourcing to India, owing to the wide gap between the personal costs in India and that of the developed countries. Offshore outsourcing to India offers considerable economical benefits for those who are prepared to exploit the advantages of outsourcing.
3. Standard quality that firms doing IT outsourcing in India guarantee.
The Indian companies involved in IT outsourcing in India provide high quality work, meeting international standards and complying with the ISO & SEI-CMM standards. Three out of every four SEI-CMM Level 5 companies worldwide is located in India. Thus India promises quality - IT outsourcing in India as it has the potential to furnish these services perfectly.
4. The reliable communication facilities.
Excellent telecom, ISP, and cellular networks are available in all cities & towns in the country. India prides in the reliable satellite and submarine communication links that facilitate good band connectivity with the rest of the world. Thus companies engaged in IT outsourcing to India, can be in touch with the vendors without any connection hurdles. This plays a significant role in determining the success of offshore IT outsourcing to India.
5. Technologically advanced outsourcing firms in India.
India's technologies offer excellent software solutions. The applications include Business Process re-engineering, System Migration, Maintaining Legacy system, System integration, eCommerce etc. India prides in outsourcing facilities that are required to compete with quality service providers in the world; which is yet another reason as to why the world prefers IT outsourcing to India.
6. Galloping growth in Indian economy.
The service sector in India contributes 51% of the GDP. Computer software export was prominent with a growth rate of 40%-50% per year during the 90s. India being the second largest software exporter in the world its large business houses and public sector units are growing steadfastly towards raising economic growth.
Tax system in India
The well structured tax system in India, with the authority to levy taxes is divided between the Central & State Governments. Direct taxes, like personal income tax, corporate tax and indirect taxes like customs duty are collected by the Central Government while State Government levies local and state sales tax. Tax revenue as a percent of GDP has been constantly on the rise.
A domestic company having entire management and control in India is bound to pay 35.7% tax to the Central Government. The nonresident Corporation has to pay 48% of the income derived in India from Indian operation; income that is accounted to arise in India and income that is received in India. Minimum Alienate Tax (MAT) is at the rate of 7.65% of book profit of the companies.
The tax incentives offered to the investors by the Government of India are a boon for firms involved in IT outsourcing to India. The incentives that facilitate economic growth and development are:
A 10 years tax holiday to ventures engaged in developing and / or maintaining and operating an infrastructure facility.
10 years tax holiday to undertakings, which generate and / or distribute power.
5 years tax holiday for companies providing telecom services including Internet services and broadband services. Also 30 % deduction from profits for the next 5 years in any 10 continuous years out of first 10 years is also offered.
4. Industrial Parks and Special Economic Zones
10 years tax holiday is applicable to ventures that develop and /or operate or maintain in notified IT parks and special economic zones.
5. Other Industries
5-year tax holiday is available for new industrial units to be set up in backward states and districts.
6. Incentives for Exports
Tax is deducted on exporters profits for unit set up on EPZs, STPs, EHTPs, FTZ and SEZs.
7. Other Incentives
Tax concessions are allowed for FTI and a weighted deduction of 150% for scientific research and development expenditure have been offered. 10 years tax holiday is available for R&D companies engaged in scientific and industrial research.
Benefits of outsourcing
1. Cost advantages
The most obvious and visible benefit relates to the cost savings that outsourcing brings about. You can get your job done at a lower cost and at better quality as well. Due to the difference in wages between western countries and Asia, the same kind of work that is done over there can be done in India at a fraction of the cost. There is a cost savings of around 60% by outsourcing your work to India.
When you outsource your business needs to an outsourcing partner like Flatworld Solutions, they bring years of experience in business practices and expertise in delivering complex outsourcing projects. Thus, they can do the job better with their knowledge and understanding of the domain. This leads to an increase in productivity and efficiency in the process thereby contributing to the bottom-line of your company.
3.Focus on core areas
Outsourcing your business processes would free your energies and enable you to focus on building your brand, invest in research and development and move on to providing higher value added services.
4.Save on infrastructure and technology
Outsourcing eliminates the need for investment in infrastructure as the outsourcing partner takes the responsibility of the business processes and hence develops infrastructure for the same.
5.Access to skilled resources
You no longer need to invest in recruiting and training expensive resources for your business. Providers like Flatworld Solutions take care of the resourcing needs with their pool of highly skilled resources. The resources employed by Flatworld Solutions are well educated in the respective business areas and are experienced in handling the business needs of companies that want to outsource. Further, Flatworld Solutions employs world class business practices perfected over the years by catering to customers around the globe. Get access to the expertise and capabilities of Flatworld Solutions.
6.Time zone advantage
Apart from the cost advantage, the other much touted benefit has to do with the time zone differential between your country and the location you are outsourcing to. Get your job done while you are closed for the day and wake up to your service being delivered the next morning. This unique advantage gives you the benefit of round-the-clock business operations
7.Faster and better services
Make your service offerings better with high quality deliverables and decrease the lead time it takes for your product to reach the marketplace. Thus you would be faster in getting your ideas converted into products and better at delivering the value-added proposition.