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CAPACITY BUILDING OR OUTSOURCING Here I am discussing of the capacity building or outsourcing of the Indian economy in different area. In simple word we are inter in 21 century in 21 century focus on manufacturing, engineering, banking, information. Technology and human resource capacity. Today the word economy facing critical problem with different area so the word economy effect the Indian outsourcing in different way but Indian capacity building or outsourcing play vital role in Indian economy. In recent years, one focus of globalization - the transfer of certain manufacturing processes overseas - has expanded to include the offshore outsourcing of many business process services. The offshore outsourcing of business process services to other countries has generated much debate in world so firstly here discussing the IT outsourcing of India. IT OUTSOURCING Indian IT hardware industry can probably take a cue from the success of the auto manufacturing sector, which has gradually stepped up capacity from component manufacturing to part-designing and now complete product engineering and manufacturing. As the government makes efforts to drive the hardware manufacturing industry, it will have to simultaneously address the immediate challenges that emerge from economic issues such as rupee devaluation, inflation, and other recession-related problems. India has already demonstrated the potential to succeed on a global landscape in software &

services. With Indian IT having reached a certain level of maturity, the timing seems almost right to push for growth in the area of hardware manufacturing. So are we ready to take on the Asian tigers with a 'Made in India' brand? The following steps can be taken to boost hardware manufacturing in India: Demand Stimulus: Increase the affordability of IT hardware to push consumption in the domestic market. Conducive Policy: Provide a conducive policy framework to encourage local manufacturing Schemes & Incentives: The government must invest in research and development to keep up with the global trends; private players can also be encouraged to invest in this area. Capacity Building: Unless the decisions to manufacture in India are supported with efforts at building capacity, they will not achieve the desired results IT Education: Efforts at promoting. IT education in different states will also drive the domestic demand for IT products.Accoding to IT minister for Indian outsourcing has different policy so I am focus the IT of India If the Indian hardware manufacturer has to find a place in the global landscape, there is a need to develop a comprehensive strategy that not only addresses the infrastructural issues but also encompasses the other areas related to policies and procedures. So far most of the government initiatives taken to push indigenous manufacturing haven't been adequately supported by efforts to build the required capacity. Take for example the recent case of Akashi tablets. All efforts to push for manufacturing these devices in India have got mired in various controversies, resulting in a huge demand-supply gap that is preventing largescale adoption of the product. STRATEGIES FOR OUTSOURCING To realize this opportunity, India needs to develop a multi-pronged strategy for success. Some of the recommended actions are broader in scope, related to those

required to sustain our lead in IT-BPO exports and are already at various stages of planning and execution. Others are more specific, targeted at addressing the engineering services market. Build the Engineered in India brand. Build domain expertise through symbiotic relationships with experts. Focus on infrastructure creation. Undertake initiatives to improve workforce. Leverage local industry offsets. Align government policy and incentives