Gaming discovers outsourcing benefits

The Economic Times reports.

The 41-year-old self-confessed geek runs Dhruva, a firm that sells content and services to global online game companies from a bungalow in a crowded suburb of a city that has come to embody outsourcing and the transfer of jobs from the West.

But plain vanilla outsourcing - helpdesks and back-office operations - is finding cheaper locations abroad. India's software industry has discovered it needs to move up the value chain or enter niche areas like gaming to continue growing.

Firstpost writes that, as gaming scales up, the advantages of outsourcing are becoming apparent to the firms on the US West Coast that dominate the sector. Jobs that can cost up to $12 000 to $15 000 per man-month there can be outsourced to companies in India like Dhruva for about $4 000 to $5 000.

“The gaming industry began to discover the benefits of outsourcing, and we were already there, and so we started seeing a huge upswing in business,” Rao said.