Indian Offshore Model will Dominate Global IT Sector


The Indian IT industry will dominate the global landscape due to various advantages associated with the offshore model


According to analysts, India is increasingly becoming an attractive market for tech companies from all over the world.

What is the offshore model or the Work from home model?

In simple terms, it is the relocation of a company’s business process to a country that is not in the same geographical region. For example, a company in the US might have the majority of its employees working in India or China due to various benefits.

Why is India becoming an attractive market for tech companies?

India is becoming an attractive IT market because:

  • There is an increase in critical shortage of skilled manpower in countries such as the US and Europe
  • Pandemic-induced work-from-home has raised the openness of global tech buyers. They are allowing to work away from onshore (or the client’s location).
  • Markets are witnessing a 50% reduction in the onshore model and about 15% increase in the offshore model.
Advantages of Work from Home Model or Offshore Model:
  • Zero Commutation: When working remotely, a person doesn’t have to step out of their home. So it will reduce the time and fuel spent to and from the office commute.
  • Flexible Schedule: A person can choose to schedule tasks that would otherwise be left out. For example, when in office and build their working hours around their priorities, either for home or for learning something new.
  • Larger Skill Pool: Employers can extend their reach to hire a better skill pool across the globe, rather than just relying on persons available locally.
  • Saving on Office Space: Having a majority of all the workforce working remotely will help to cut costs significantly on office space and maintenance.
Limitations of Work from Home Model or Offshore Model:
  • Increased isolation: A person can become quite isolated if he/she spend the majority of the time by him/herself working independently.
  • Loss of Focus: Homes are comfortable, but they present their own challenges. Even with a strict schedule, it is difficult to not get involved with family work or responsibilities.
  • Lack of Accountability and Fall in Productivity: Work from Home makes it difficult for an organisation to chart the strengths and weaknesses of every individual while working remotely.Source: The Hindu

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