27/08/2003

Outsourcing to India

IT outsourcing to India is a hot topic in English speaking countries. A story in The Economist (Outsourcing to India by subscription) shows that the growth in Call Centres (labelled “information-technology-enabled service”, ITES) is the fastest between software development and "Business Process Outsourcing".

Issues like: freezing of wages, difficulties to obtain visas to US and attrition show that "are all symptoms of a maturing industry now competing for market share against the global giants of IT consultancy on quality rather than just price. The challenge facing the rest of the outsourcing industry is to reach a similar plateau. Best-placed are those firms that have already moved upmarket: away from call-centres and towards the outsourcing of more sophisticated business processes"

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