Information Technology Outsourcing with call centers hub---India

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Import License for China Sourcing

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2007/10/07 20:15 | by SamChan ]

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Information Technology Outsourcing and call centers in India continue to grow as well. IBM has more than doubled its staff in India to 53,000 and has spent $2 billion since 2004 reported by Business Week in April. It still plans to spend another $6 billion. Often neglected is India’s slowing pace of outsourcing growth and its rising costs brought on by a multitude of factors that collectively could undermine a large portion of India’s GNP.

India is way up from struggling nation to economic super power. A large part of that growth was encouraged by U.S. outsourcing to India. Devaluated rupee, lower cost of living and millions of English speaking people provided the ideal setting for such outsourced activities as manufacturing and customer-service call centers.

In the last few years, many services like human resource, medical research, engineering, accounting and software development have been added to India’s outsourcing capacity.As per KPMG reports, IMB, Aviva Sigorta A.S., Prudential Financial Inc and AXA are the major players developing end-to-end BPO jobs and more to follow.

Lower cost of living and large pool of able workers are reversing. And the increased cost of keeping long time service providers in India with declining value of the U.S. dollar versus rupee is causing U.S. clients to explore more economically viable options. Like any other industry, the business of outsourcingis evolving strategically, says Romala Ravi, director of BPO services at Interactive Data Corp. Instead of using single vendor for multiple functions companies are more often utilizing a best of the breed approach to allocate specific portions of outsourcing to vendors best suited for them.

Also added that, “Eastern Europe has become a popular destination for establishing finance and accounting outsourcing operations. We’re also seeing a lot of customer care and call-center work for the Spanish-speaking world coming out of parts of the Caribbean, as well as Central and Southern America,” India’s status as outsourcing destination of the world is giving way to other countries with significant room to grow in that field. Two chief rivals are Phillipines and China.

China’s software and service industry accounted for 5% of its 3006 GNP, barely a blip compared to 5.5% of India’s. But with time and experience,China can take a huge cut from India’s outsourcing share. Outsourcing not only broadened the range of skills of Indian workers but also laid a rock-solid foundation for economic growth.