India Faces New Outsourcing Threat
India, the largest outsourcing country in the world is facing a new outsourcing threat and no, these factors are not found in India.
The threat that India is facing right now is the rapid interest and efforts of other countries which are now really interested in outsourcing. Other options are now being viewed in outsourcing because of the disadvantages found in the Indian outsourcing scene. Some of these disadvantages includes the following:
-high attrition rates
-poor infrastructure
-rising wages
-appreciation of the Indian rupee
These factors are now considered as a big hindrance in achieving the company goals in outsourcing. In turn, other outsourcing destinations such as Malaysia, China, Philippines and others are continuing their campaign for a better outsourcing alternative.
Do you think that these countries have the chance to grow with the same rate as the Indian market did?
2 Comments
Comments RSS
TrackBack Identifier URI
Leave a comment
I understand the point of view, however India’s rich human capital makes it an excellent offshore destination for most KPO. If you look at the top outsource destinations for BPO and SSO you’ll see India, China and Malaysia as the top 3 for the last couple of years. This is due to the highly educated human resource. However, if you put it into perspective, Malaysia has a population of 26 million against China and India’s billions, which goes to show that most clients looking to outsource are quite discerning and prefer to best source, rather than look towards the ‘cheapest’ option avaialable. I dont think India should be too worried.
Comment by Glen Stidolph on August 13, 2007 5:36 am
I’m confused as to why there is an image of a security guard with a big bat to illustrate the article. What is the relavence of this?
Comment by Steve on April 22, 2009 2:37 am