Theory of Quality Services: Examples

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Theory of Quality Services

This theory states that a country having skilled and experienced professionals provides
services to other countries which will lead to completion of work in time and in efficient
manner as Services play a major role in all modern economies, an efficient sector is
considered to be crucial for trade and economic growth and for dynamic and resilient
economies. Services provide vital support to the economy as a whole and more specifically to
industry. This could directly lead to the growth of FDI, Employment , and many other
factors. A country could even send their employees who are well known to the service, this
could be easier for other country to know and use the services provided, this leads to
movement of labour.
Moreover the countries trading internationally with services are trying to make their service
tangible in the foreign markets, as almost all the services are intangible. It totally depend
upon the type of the product (service) a country provides, if a country trade with technology ,
are providing the services attached to it. Basically services are attached to product, not all
services but some, because if one country launches product, they are providing services
required to maintain that product, brand in that particular country.

The Theory of Quality services is based on following assumptions:


1. The Service provider country must meet the demand of other countries.
2. The service provider country must provide the services at given time limit by other
countries.
3. The service provider country must deliver services that meet expectations of other
countries.
4. The service provider country must provide enhanced service delivery and problem
solving process.
5. The service provider country must provide services at reasonable prices to other
countries.
6. The service provider country must be able to face the competition in the country where
the service is being provided.

Examples:

When it comes to quality, there is no compromise from India. Indian service providers use
the very latest in technology, software and infrastructure to provide services that are on par
with international quality standards. Research surveys have even proved that Indian
professionals are technically superior when compared with IT professionals from other
countries. Global businesses love to outsource to India as they can get access to a highly
educated workforce that is experienced, skilled, proficient in English, computer-literate and
technically talented.

In a recent survey, 80% of European and US outsourcing firms ranked India as their number
one outsourcing destination. The National Association of Software & Service Companies
(NASSCOM) also reported that almost half of all Fortune 500 companies choose to outsource
software development to Indian outsourcing firms. Even though many other countries
(including China, Mexico, Ireland and the Philippines) have emerged as major competitors,
India has managed to outmaneuver all others and emerge as the top outsourcing destination.
Major differentiators such as certain favorable government policies, fast-developing
infrastructure, and an immensely talented work force are responsible for the Indian IT
outsourcing industry continuing to experience a tremendous growth rate of 2530% per year.
Some examples of Indian companies that provide IT services to other countries:

1. Tata Consultancy Services Limited (TCS) :


It is an Indian multinational information technology (IT) service, consulting and business
solutions company headquartered in Mumbai, Maharashtra. TCS operates in 46 countries. It
is a subsidiary of the Tata Group and is listed on the Bombay Stock Exchange and
the National Stock Exchange of India. TCS is the largest Indian company by market
capitalization and is the largest India-based IT services company by 2013 revenues. TCS is
now placed among the Big 4 most valuable IT services brands worldwide TCS and its 59
subsidiaries provide a wide range of information technology-related products and services
including application development, business process outsourcing, capacity planning,
consulting, enterprise software, hardware sizing, payment processing, software management
and technology education services.

2. Infosys:

Infosys Ltd (formerly Infosys Technologies Limited) is an Indian multinational


corporation that provides business consulting, information technology, software
engineering and outsourcing services. Infosys is the third-largest India-based IT services
company by 2014 revenues, and the fifth largest employer of H-1B visa professionals in the
United States in FY 2013. Infosys has a global presence with 72 offices and 94 development
centers in the United States, India, China, Australia, Japan, Middle East, and Europe. In
recent years, Infosys has begun shifting operations to the United States and other countries. In
2012, Infosys announced a new office in Milwaukee, Wisconsin to service Harley-Davidson,
being the 18th international office in the United States. Infosys hired 1,200 United States
employees in 2011, and expanded the workforce by an additional 2,000 employees in 2012.

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