Across the globe, thousands of jobs have been shifted to low-cost, offshore centers such as India in recent years. An industry report showed that businesses in America and the UK are facing increasing pressure to move jobs abroad to cut costs, and India and China are the top destinations.
These customers are looking for one-stop shops for their IT outsourcing needs and the BPO needs. A convergence of these two is in the offing. Typically, IT applications for a BPO are given to another vendor and this is where inefficiencies creep in. Instead, one vendor could be held responsible for the end-to-end function. outsourcing is a huge economic engineer and an important economic contributor. Outsourcing creates jobs, increases opportunities for shareholders and investors. Secondly, it helps the customers of outsourcing to grow and shrink businesses. It provides more flexibility and allows the service provider to target more customers across industries. It also acts as a ‘shock absorber’ for the highs and lows of businesses, in turn providing more stability.
India retains its competitive edge over cost, compared to other outsourcing destinations. However, India has other advantages too. Experience is one factor. India has been providing outsourcing services for the past two decades. Secondly familiarity with the European and American way of conducting business. Then there is the brainpower. India has a number of highly qualified professionals for R&D and analyst in various fields, a field which has not been extensively tapped yet. If you look up the value chain, new avenues keep opening up for outsourcing.