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Outsourcing for Digital Development of the Nation

Outsourcing for Digital Development of the Nation

Outsourcing for Digital Development of the Nation

Government Outsourcing

The Government Outsourcing is a big topic in today’s India. It is a frequently discussed solution, especially with the recurring budget crisis. India boasts a talent pool and is a sought-after destination for global corporations to outsource various services. The country counts itself among the global leaders when it comes to off-shoring. Outsourcing does not only encourage exports but also heightens national income, tax revenues, and help create employment opportunities. Outsourcing gives a competitive edge in the country’s industry scenario. The technology and flexibility in offering IT outsourcing services to the public sector allow the influx of huge profits that in turn helps companies reach a point where they can provide incentives to the deserving employees. Outsourcing affects the stakeholders in every dimension.

There are several traits why India stands as an outsourcing hub, some of which are:

  • India has the largest talent pool of lawyers, engineers, research analyst, etc.
  • Confidence in India’s IT Outsourcing Services
  • Indian extends software support to approx. 95 countries across the globe.
  • In a recent survey, 82% of the US companies declared India as the primary destination to borrow technical help.
  • Bill Clinton, former US President, announced that Indians are leading around 750 businesses in the Silicon Valley.
  • Bill Gates called India a superpower, forging strategic alliances with Wipro and Infosys.

India’s state-of-the-art technologies have enabled India to rise to the big projects with the help broad range applications: E-commerce, System Integration, System Migration, Maintaining Legacy Systems, CBI Applicant, Business processes re-engineering, etc.

Shaping IT Outsourcing this 2016

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  • India has a rapidly growing economy with stable government.
  • 51% of India’s GDP attributes it to the IT outsourcing services.
  • Privatization has boosted the infrastructure sector.
  • A convergent network is under the process of setting to achieve greater bandwidth. For that matter, various cellular and networking sectors like ISP, Telecoms, VSAT, etc., are intertwining.
  • IT is the thrust area and a priority area for the Indian Government.
  • The government rigorously pursues IT by approving and implementing of 108 point Action Plan produced by the National IT task force.
  • After the May 2000 Information Technology Act, the cyber scandal is a serious offence and E-commerce has become a subject under the law. The act puts India among the list of 12 nations with cyber laws.
  • A ministry of Information Technology looks after the regulations and implementation of IT projects.
  • IT-BPO dominates the global market with a market share of 51% and approximately worth 11 billion US dollars.
  • IT KPO captures Global KPO sector with 70% stocks and out of the 16 billion dollars that the KPO industry reached, 12 billion USD outsourced to India.
  • Despite the financial and banking crisis that the world underwent, Indian BPO and KPO corporations seemed to maintain a good success record. Indian IT consulting services are, therefore, a major dominant player when it comes to outsourcing to the world.

Niti Aayog (National Institution for Transforming India) outlines the need to outsource public services to private initiatives so that stress and dependency on the government administrative machinery could reduce to a large extent. If the specialists get engaged within the governance system, the existing bureaucracy will be challenged, and healthy competition will take over. Niti Aayog also hopes that there will be a lot that can occur achieved through outsourcing. To mention a few:

  • Niti Aayog has proposed longer tenure for the rank of secretary in the departments of governance. It addresses the problem wherein the officials do not take up important initiatives due to the approaching retirement. Niti Aayog will address the lack decision-making towards big projects due to fear of being booked on corruption charges post-retirement.
  • Decision-making will be a quick process.
  • Niti Aayog encourages officers to work on their skills in the chosen area of specialization as the commission undertakes various tasks that require specialization of talent and knowledge.
  • These proposals, once approved, could open doors for other departments.

Pros and Cons from the Vendor’s Perspective

The government faces a lot of problems when it outsources various government and public services.

Here are some advantages and drawbacks that the vendors are likely to face:

Benefits the Private Vendors Experiences

Room for Growth:

For any vendor, especially start-ups, getting a tender from the government for public service outsourcing could establish them as a good company in the market.

Understanding How the Government Functions:

Receiving outsourced work is an ideal to understand the operation of the government departments and what is their contribution to the entire system.

Regular Work:

Getting government contracts and tenders are the best way to kick off your business and bring a lot of opportunities to explore as a company. Steady and consistent work is one of the best aspects of outsourcing from the vendor’s side.

Drawbacks that the Vendors Face

There are cons in the best of jobs and activities, and outsourcing of public services sure comes with few disadvantages for the vendors.

Here is a list of some of them:

Rules that get on your Nerve:

It can be very annoying when it comes to working for the government as the departments go by commands and line of operation. It gets monotonous to function in an environment where there are too many rules to follow, and the flexibility of the private sector diminished.

Lack of Flexibility:

Stringent rules, tight deadlines, working for the government is a tedious job.

Lack of Effective Communication:

Communication in the system may be affected when the departments do not coordinate well. Effective communication becomes an obstacle while carrying out the task.

Under the Digital India Initiative of the Government, the tech spending is likely rise.

Digital India will be a $1-trillion business opportunity, source: Economictimes.

According to Gartner Research Firm, government spending on IT services and products would rise in 2016 to $7 billion, marking an increase of 3.1% from the previous figure.

IT outsourcing services including software support, business process and implementation, hardware support, etc., expects a rise by 8.8% making it a $1.6 billion business by 2016.

IT Solutions that the Government Can Tap into

The Government can exploit various solutions when it comes to tapping into various IT outsourcing services. There are diverse segments of solutions which include defence, land reforms, food and civil supplies, public transport, parliamentary affairs, and Energy. To improve the outcome, the government is assisted by small and large agencies with cost optimization, key imperatives, and insights-driven operation.

Some public sector IT consulting services include:

  • Project Management Office Services
  • Test and Evaluation
  • Capital Planning and Investment Control (CPIC)
  • Application Development and Maintenance
  • Information Technology Investment Management (ITIM)
  • Systems Integration
  • Enterprise Resource Planning
  • Business Process Reengineering
  • Information Assurance/IT Security
  • Full Lifecycle Software Engineering
  • Electronic Document Management Solutions
  • CIO Advisory Services
  • Data Warehousing and Business Intelligence
  • Legacy-to-Web Application Refresh

Effective delivery of Government and public sector services helps transform the health, education, infrastructural scenario. The need for IT consulting services is increasing especially with an administrative shift towards digital or E-Governance.

How do WE contribute to the Good Cause?

Serving the government is the prime motive-an obligation, and we encourage our government by assisting them in achieving their dream of Digital India. In the coming decades, governance will be moulded by factors like an ageing population, technological changes, higher citizen service expectations, heightening budget pressures, etc. There will be an increase in commercial services in the public sector by harnessing digital technologies.

Digital marketing assists government in reaching the larger population and encouraging them to exploit the online services that the government offers. For more information, Please visit our digital agency,

SearchNative supports public sector organizations by providing digital IT outsourcing services and various other public sectors IT consulting services. We focus on providing end-to-end IT services to support local government organizations, thus contributing to the digital Development of the nation.

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