BPO To Continue To Boom Despite Setbacks

Filed in archive Outsourcing News on April 26, 2005

Despite recent troubles, US businesses will still outsource work overseas because they cannot afford to do the outsourced jobs themselves. Gartner analyst Frances Karamouzis pointed out that most of the job functions that are moved offshore are done so because of price considerations. She said, "There could be some blips, but the long-term factors that favor outsourcing are still in place."

Outsourcing recently came under fire when citibank accounts were stolen from through an Indian offshore unit. Karamouzis said that local police have caught those involved in the robbery. She added, "It shows that India has [a] modern, capable law enforcement."

UBS Securities analyst Adam Frisch doesn't believe the outsourcing boom will end, especially as IT services companies continue to grow and new capabilities such as consulting and infrastructure management are introduced. He said, "We do not think the fundamentals of a growing and still-nascent industry [will] change in a three-month period."