Indian outsourcing heads abroad
Indian IT and outsourcing firms, which have a reputation for cheap operations, are diverting new orders to places like the Philippines, East Europe and Latin America that offer better pricing and skill sets, reports Hindustan Times.
India's brand image is being leveraged to get high margin deals, which are then executed out of different geographies.
"Labour costs in places like Poland, Hungary and the Philippines are just marginally higher than in India, but with Indian wages going up by 15% in 2007-2008, companies are forced to look at these destinations," said Sid Pai, a partner at Technology Partners International, an analyst firm based in Bangalore.
India's outsourcers move to next level
Wipro - India's third-largest software company - is setting up its own BPO centres in countries such as China, Romania, the United States and Egypt, says Asia Times.
The seller turning buyer gives an intriguing twist to the global outsourcing business, worth US$930 billion last year and expected to grow at 15% annually to amass $1.4 trillion by 2009 and dominated by India. That domination is under threat, and the empire is striking back.
TK Kurien, Wipro's CEO for BPO, told the media his company is setting up two Chinese BPO centres, in Shanghai and Chengdu, to provide accounting and financial services by next month. Wipro's US unit is to appear within nine months.
TPI forecasts steady KPO growth
Interest in knowledge process outsourcing (KPO) is growing and on pace to increase steadily, according to a research report by TPI, the leading sourcing advisory firm, says Money Control.
The comprehensive report - Knowledge Process Offshoring: A Balanced View of An Emerging Market - was conducted by TPI through primary and secondary research between January and April 2007 based on 73 service providers and 45 captive centres in India performing business process outsourcing (BPO) or KPO activities.
In an effort to understand the growing phenomenon of KPO and its true potential, TPI executed an extensive research exercise to develop an objective and balanced analysis of the KPO market.
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