|HISTORY OF OUTSOURCING TO INDIA
Legendary General Electric (GE) CEO, Jack Welch was one of the first to see the profit potential in having some of his company's work done in India. When he came here in 1989 he was "completely taken by India as a source of intellectual advantage for GE" according to author Thomas Friedman.
The First Wave of outsourcing to India began when other companies realized that India offered a special combination of highly trained and qualified workers, low cost structure, and English language skills. At the same time, Indian companies began to see the possibilities in being a low-cost source of brainpower and technical skill for companies in the English-speaking world.
At the same time, two things were happening that made outsourcing to India an even better idea. In India, government policy became friendlier to entrepreneurial companies. And between English-speaking countries and India satellite and fiber optic communication improved dramatically. Then the world woke up to the looming threat of Y2K
When the first computers and computer languages were developed, the year portion of dates was expressed as two digits, not four, to save on computing power. That was fine until the turn of the Century loomed.
Savvy IT observers like Peter de Jager began to warn businesses that if they didn't do something about their "legacy code" their computers would start doing some really strange things on January 1, 2000. The result: companies needed a lot of programming work before the new century began to make things work right. India was ready.
When the Century turned a lot of things changed. The Y2K problem was solved. Around the world, the Dot-Com Bubble burst. Companies disappeared left and right.
In India, the Second Wave of Outsourcing was about to begin. Amnet helped lead the way. When we were founded with six people in 2000, we had several advantages. The satellite and fiber optic communications infrastructure was already in place. In Chennai, where Amnet is based, state and city government were working hard to create a location that would attract companies like us.
And we got to learn from the successes and the failures of other businesses. The story of Amnet is about making the kind of wise choices that enable us to provide you with consistently high quality, profit-building services.