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Outsourcing: Indian Outsourcing
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Outsourcing business is no longer a new concept in the industry now. A large number of firms in the USA and Europe have outsourced their businesses to India and other favorite destinations for better productivity and quality at a low cost. Outsourcing business covers health, law, transactions, finance and other related operations. However, a new concept of outsourcing has come into picture with an increasing number of couples are coming to India in search of cheaper fertility treatment, donor eggs and surrogate mothers. It seems that the West is turning to Indians to carry babies.
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The Coming Death of Indian Outsourcing?- Forbes recently published some scary statistics on wage inflation in India. (See ) Salaries rose 15.1% in 2007, up from 14.4% the previous year. The 2008 forecast: 15.2%. This would be the fifth consecutive year of salary growth above 10%. Add to that
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After a multinational bank discovered in 2005 that call center employees at an Indian outsourcing firm had stolen more than $300,000 from its customers' accounts NASSCOM established a National Skills Registry of employees working at Indian outsourcing firms. However, the latest estimates are that only 30 percent of the industry's employees have undergone independent background checks and been added to the database.
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Productivity gains driving IT outsourcing- Businesses are increasingly outsourcing to improve performance - although cutting costs is still the number one reason for most. Special Report: Inside India In February 2007 silicon.com's Steve Ranger visited the Indian tech hotspots of Bangalore,
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In the world of IT and business process outsourcing (BPO), one fact is currently indisputable: the biggest pool of available, and low-cost, talent is in India.That granted, different vendors can profit from this fact. Certainly IBM, with its promise of ramping up to an Indian workforce of 50,000 employees, has done so. So has Capgemini, which recently announced the creation of its third Indian center (in Kolkata) and its plans to expand from 4,000 Indian employees to 10,000 by 2007.
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The move comes as Indian outsourcing companies struggle with a rising rupee, which dings profit margins. Meanwhile, offshore outsourcing companies have been beefing up their U.S. presence as they expand into consulting and other high margin areas.
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Indian Outsourcing