The Mumbai Tragedy

Filed in archive Outsourcing News on December 1, 2008

Photo courtesy of iStockphoto, Jeremy Edwards

Last week's terror attacks in Mumbai could have sweeping effects on the outsourcing industry over the next year. The brazen targeting of westerners by militants potentially linked to Al Qaida, occurring at some of Mumbai's nicest hotels and restaurants, could drastically reduce or eliminate business travelers' desire to travel to India for site visits and management activities.

This is a particular problem as companies that outsource have become more active in the management of their projects, often sending over key executives to conduct site reviews - not just at the outset of a contract, but throughout the life of a deal. Managers will likely be reluctant to take the risk, and the cost of effective, real security may be higher than the budget allows.

It will be a long time before the images of a burning hotel or community center will be purged from our collective memories. The only question is how long it will be before people feel safe traveling to major centers in India, like Mumbai, Delhi and Bangalore.

We all mourn the loss of life that occurred at the hotels, the Jewish center, the restaurants and the rail station. Our prayers go out to their families and associates at this time of sorrow. We can only hope that this tragedy, when combined with the economic and political difficulties faced by the world, has only a minor effect on the outsourcing community.