One of the unique methods used by Indian software companies to deliver competitive advantage to its clients is offshore software development. This involves using high-speed (64 kbps, 2 Mbps and above) datacom links, which in turn allow computers situated anywhere in the world to be used by programmers in India on a real-time and on-line basis. Even if a client is situated 10,000 miles away, he or she can still monitor the software development on a minute-by-minute basis, ensure quality checks, communicate with the programmers as if they were just next door, and still get efficient software developed. This is conducted with immense savings of time and money.

Despite an average 12-hour time difference with India, a high-speed datacom link can provide a client in the US with a virtual 24-hour office environment. This concept has worked wonders for large projects, as well as for projects involving remote software maintenance using video conferencing. The virtual 24 hour office almost cuts the development life cycle in half, thus ensuring speedy deliveries with high quality.

Videsh Sanchar Nigam Limited (VSNL) has pioneered and taken a leadership position in providing high-speed data communication links in India. VSNL is India's telecom gateway to the world. In the last seven years, it has provided more than 1000 high-speed leased circuits to software companies in India. These circuits include both 64 kbps as well as 2M links for videoconferencing. A major portion of India's software exports can be attributed to VSNL's efforts in providing such high-speed links.

The company, which recorded a turnover of $1.63 billion in 1998-99, with a net profit of $245 million, provides a highly diversified range of business and value-added services. Besides overseas basic telephony, VSNL's services include Internet connectivity and managed data as well as frame relay services. It also provides a range of IT Enabling services, including high speed leased lines; customer site VSAT earth stations; Electronic Data Interchange (EDI) services and inmarsat mobile services, and has added satellite broadcast and transponder lease services. At present, 53% of its equity is held by the Government of India and 43% is held by domestic and international shareholders. Its latest divestment was in February 1999, wherein 20 million GDRs (10 million shares) were divested and listed on the London Stock Exchange.

Amitabh Kumar, acting chairman and managing director of VSNL, has provided dynamic leadership in providing international, state-of-the-art telephonic equipment and services at VSNL. With VSNL's efforts, offshore software development has become very efficient and cost-effective for India's software firms.

HIGH QUALITY

India's software industry has achieved the distinction for providing excellent quality. At present, 115 software companies have acquired ISO 9000 certification, and about 70 more companies are in the pipeline to be certified. In fact, the Indian software industry will soon have more ISO 9000-certified companies than any other country in the world. Many of its members are now focusing on acquiring SEI-CMM (Software Engineering Institute ­ Capability Maturity Model) certificates of quality. As many as 32 Indian companies already have SEI-CMM certification, with five of them having reached Level 5. It must be noted that worldwide, only nine companies have reached this level, and more than half of belong to India.

Not surprisingly, India has earned a status by offering the best combination of cost effectiveness and high quality. A World Bank funded study compared India with many other countries to analyze India's position vis-a-vis cost and quality. Its findings proved that India is better positioned as a high-quality and cost-effective country when compared to Ireland, China, Mexico or the Philippines.

Just a quick look at one of the leading software companies from India ­ Satyam Computer Services Ltd, and one is convinced of the kind of high quality software solutions offered by the country. Satyam is SEI-CMM Level 5 company, one of the nine elite in the world.

Satyam offers a range of expertise in the areas of information technology: software development services, systems integration, ERP solutions, product development, internet services and E-commerce, and process consulting. Satyam has over 4,300 IT professionals, who operate out of its state-of-the-art software development centers located in India, USA, Japan, Singapore and the UK. These centers work as an extended enterprise (IT partner) for over one hundred Fortune 500 and multinational clients worldwide.

Satyam is engaged in application development and maintenance, systems integration, datamarts, conversion and migration, Euro currency and year 2000 (Y2K) solutions and engineering services including CAD, CAM and CAE. The company also offers network and network-enabled services in India. It provides Internet access and hosting services, Intranet, email, EDI, store and forward, and online information services. Thus, Satyam offers its global clients a blend of consulting and IT skills, helping them to re-engineer and reinvent their products, services and processes to compete successfully in the changing market place.

Satyam is also involved in virtual product development and the creation of proprietary software. Three such unique products are VisionCompass, Dr. Millennium and SearchPad. VisionCompass is a leading Business Performance Measurement and Management (BPM) software. Dr. Millennium is a revolutionary Internet-based Y2K tool that can be used to assess the Y2K status of client's PCs. SearchPad is an intelligent desktop Internet search tool that provides fast access to desired information on the Internet.

General Electric, Satyam's client, has been considerably impressed with the expertise of Satyam. Mr Scott R. Bayman, President and CEO, GE-India said, "We are delighted to be partnering with Satyam which has clearly demonstrated its world-class capabilities and expertise in supplying software and engineering services to GE over the past four years."