INDIAN BUSINESS SERVICES:

Trade with India- Indian Business Services emerges big time on world stage - By: Made From India:

Indian Business services are in the very much in the spotlight. In fact, India’s share in the global trade of services has improved from 2 per cent in 2004 to 2.7 percent in 2006. Foreign players are keenly looking-forward to trade with India on various service fronts be it the Information Technology front, Healthcare, Investments, Tourism/Hospitality, Legal Services, or on the Retail front.

Information Technology Services

As per NASSCOM’S estimations, exports from the Information Technology (IT) and Business Process Outsourcing (BPO) sectors may touch US$ 60 billion in 2010-11.

Foreign companies are finding Banking and Financial Services at its best and the best segment to trade with India. A break up of India’s IT-BPO exports sector shows Banking and Financial Services Institutions (BFSI) forming 41 percent of the exports in 2007-08, while telecom and manufacturing accounted 20 percent and 17 percent, respectively.

Tata Consulting Services has signed an agreement worth US$ 100 million to provide IT services to a UK-based telecom company 4U Group.

Healthcare

Experts are of the opinion that outsourcing of healthcare services from US to India would be a continuous process. The US-based healthcare companies are keen to trade with India, in an endeavor to cut down costs of operations, according to a study carried out by Offshoring Research Network (ORN), in alliance with Duke University and research firm PricewaterhouseCoopers.

The medical transcription (MT) industry is also doing well. According to the NASSCOM report global slump has not hit this sector. The MT industry will be worth US$ 798.1 million by 2010 and would be employing around 50,000 people across India.

India is also likely to recapture its tag as the back office of the world, though it faces competition from its neighbours, like China. Currently, India is at the top position as the share of IT and IT-enabled services on the global front are over 26 percent, while China has just over 3 percent. In a globalized world, India for Indians is an obsolete view. Indians are welcoming all big and small foreign companies to trade with India.

Information Technology Enabled Services

AstraZeneca a US$ 30 billion pharma company has outsourced its maintenance services for a slew of corporate services (such as human relations, finance) to Bangalore-based Infosys.

Global Hyatt Corporation a Chicago based company has outsourced some part of its financial and accounting transaction services to Genpact.

Tourism/Hospitality

India’s towering rise on the world stage, has also beckoned Tourism giants to trade with India. Lulu Group, a company worth US$ 3 billion, having presence in countries like Bahrain, Kuwait, Oman, Qatar, UAE, and Yemen has entered into a contract with Marriot Hotels to run the 20-story 300-room business hotel property coming up in Kochi.

Legal services

Even the legal servicing world is fastening its seats belts to trade with India. The world’s largest law firm UK-based Clifford Chance and AZB & Partners, an Indian law firm, have entered in an in- formal partnership agreement. As per the agreement, both the law firms will involve in client referral arrangements, joint training, consultation and marketing.

Currently, foreign law firms are not allowed to function in India and the Bar Council of India has barred joint ventures between foreign and domestic law firms. Irrespective of this norm, foreign firms are looking-forward to tie-ups with Indian firms, as they keep looking for tie-ups, in an attempt to set up local legal services for foreigners.

Retail

Inditex, a leading fashion retailing company based in Spain has joined hands with Trent, the retail arm of the Tata group. The joint venture will help and develop foreign’s company’s Zara stores in India. The partnership plans to set up its first store in New Delhi, Mumbai and other major cities of India.

Cross-over collaborations bring to the table great learning, information and experience-exchange that is truly enriching, say experts. And be rest assured, Trade with India will be an absolute pleasure.