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Outsourcing News
by Gary Zeiss, Esq. on December 1, 2008
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.
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.
Permalink: The Mumbai Tragedy
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/138899
Mr Wong
Vote for The Mumbai Tragedy:
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Response from:
Robert
(12/03/08 2:24am)
Response from:
Outsource Opinionist
(12/03/08 8:05pm)
The tragedy in Mumbai should not be held as a blackmark against the country. It's just that violence is inherent in human civilization and terrorism is an over-all concern, no matter the place. If business investors get influenced negatively by such events, then that's a winning point for the terrorists. For those innocent lives just stolen away, we just can't allow that to happen in good conscience.
Response from:
Philippine Outsourcing
(01/07/09 3:46am)
Do investors still care to outsource or establish an offshore location in India despite this tragedy? The prime purpose of outsourcing/offshoring is to reduce overhead to save costs, and if the Indian government cannot guarantee security for their investors I doubt if investments will continue to flood their way. This does not mean that investors lost their trust for India rather I would say the latter would no longer enjoy increase on investments this year of 2009. What do you think?
Response from:
Alex Payte
(01/09/09 5:21am)
I hate to say that India's security measures are not reliable.
Response from:
Outsourcing
(04/02/09 3:28am)
Thanks for sharing..
India needs proper security.....
Regards,
http://www.saibposervices.com/
Offshore outsourcing
India needs proper security.....
Regards,
http://www.saibposervices.com/
Offshore outsourcing
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