Indian outsourcing market is set to suffer due to high increase of labour cost ! Act Now or for sure be ready for sorry state !!

Indian outsourcing market is set to suffer due to high increase of labor cost. Skills shortage and rising labor cost of India’s talents is driving away most of the big IT players towards East European countries and china to find out cost reduction.  India is no longer able to give cost cut to these big IT players.

Many companies who were opened their offshore center in last few years here in India are planning to move somewhere else or in process of moving out because high cost of Indian Labor Market.

Emerging nations like Morocco, Hungry and other SE nations will eat major chunk of Indian IT outsourcing market share if we still not sit down, do some brain stormy thinking and make workable long term strategy to keep this industry at par.

We desperately need that our government should sit down with outsourcing and off shoring corporate leaders to identify specific skills required for the industry, current market trend and how we can reduce the cost of products and solution without hurting the cost of labor market and in future how we can control labor rising cost. Government should also try to find out the way to decrease taxes to keep this industry growth for at least next decade.

Outsourcing industry gives India billions of Dollars every year; this is the main factor that our economy is growing so fast. If we don’t do major brain stormy session now and don’t come up with some long term strategy for this industry then be prepared for sorry state.

We are heading to lose our greatest strength - low-cost labor – Act Now or for sure be ready for sorry state !!

India no longer top outsourcing destination?

ndia’s dominance as a low-cost outsourcing destination seems to be on the decline, with countries like China, Morocco and Hungary fast emerging as the preferred choices by IT services providers, a recent study says.

Focused on UK’s top IT service providers, a study by Pierre Audoin Consultants (PAC) showed that China, Morocco and Hungary are the new locations of choice to set up offshore sourcing centres.

HSBC ramps up Indian outsourcing presence

Good news for Indian outsourcing industries, who has been facing uphill task in conveying financial companies about outsourcing benefits to India after UK channel 4 airs report about data theft from Indian call centers.

http://www.silicon.com reported that HSBC is planning to expanding its offshore outsourcing operations in India with a new BPO facility in Kolkata and a software development centre in Hyderabad.

HSBC is expanding its offshore outsourcing operations in India with a new BPO facility in Kolkata (formerly known as Calcutta) and a software development centre in Hyderabad.

HSBC already has one wholly owned BPO subsidiary - HSBC Electronic Data Centre - in Kolkata, which has 2,000 employees working on back-office operations, and is now planning to set up another centre in the same city.

HSBC’s general manager and country head for India, Naina Lal Kidwai, said the second BPO facility in Kolkata will employ another 2,000 staff, according to reports in India.

 

technorati tags: Outsourcing, Outsource, BPO, Call Centre, Call-Centre, India, News, KPO, Offshore

Organized Labor Comes To India’s Tech Industry

The Nightmare Comes True

I thought it was terrible. I was wrong. It is far, far worse!–These words sum up my feelings at that moment. Very sad day for India’s booming IT/ITES industry. Now watch out strikes by Indian techies, which will tarnish the relatively good image that outsourcing enjoys among corporations in other countries.

Unionizing IT/BPO sector will hamper the growth of Industry. This will be a back step and it will reduce the growth rate of most booming industry in India. Foreign clients don’t like unionizing the sector because of the fact that it’s just another way to blackmail them.

India’s technology industry, which has been merrily soaking up jobs from higher-cost countries, got a little shock last week when it had its first brush with organized labor.

The Center for Indian Trade Unions, a Communist group that represents several million employees across India, launched the West Bengal Information Technology Services Association in Kolkota. Since it’s not as much a union as an employee rights group, membership is voluntary.

Trade union leaders have accused technology-services firms of abuses ranging from firing employees without notice to not providing transport for workers leaving late-night jobs.

technorati tags: India, Outsourcing, KPO, BPO, Offshore, Call Centre, Call-Centre

TATA Hugged Huggies! India’s TCS gets $100 mln deal from US firm - source

Tata Consultancy Services Ltd. is going up and up just after winning the contract of Qantas Airline last week has bagged new $100 million contract from U.S. firm Kimberly-Clark Corp.

Dallas-based Kimberly-Clark, which makes Huggies diapers and Kleenex tissues, joins a rapidly growing number of foreign firms that outsource design work, supply chain management and payroll processing to India.

NEW DELHI, Nov 14 (Reuters) - Top Indian software services firm, Tata Consultancy Services Ltd. (TCS.BO: Quote, Profile, Research), has won a $100 million contract from Kimberly-Clark Corp. (KMB.N: Quote, Profile, Research), a source close to the deal told Reuters on Tuesday, boosting its stock.

technorati tags: Outsourcing, Outsource, IT Outsourcing, USA, US, BPO, India, Business, Economy, Offshore

British supermarket major to move IT jobs to India

Britain’s fifth-largest supermarket chain Somerfield is planning to transfer nearly 120 IT jobs from its Bristol head office to a consultancy in India in a bid to reduce costs. Somerfield was in talks with Indian IT giant Tata Consultancy Services (TCS), but had not signed a contract. Good news for Indian outsourcing Industry.

London, Nov 7 (IANS) Nearly 120 jobs in the IT department of supermarket chain Somerfield in Bristol are expected to be moved to India as part of its latest cost-cutting programme.

Somerfield is reported close to signing the contract with India’s IT major Tata Consultancy Services (TCS).

The 141 workers in the department, based at Somerfield’s Whitchurch, Bristol, head office, have been told of the move. Around 25, mainly managers, are expected to stay in Bristol to oversee the operation.

technorati tags: Outsourcing, UK, India, United+Kingdom, Business, Offshore, Outsource

Qantas IT jobs fly off to India

Good news for Indian IT/ITES sector. In one of the largest outsourcing deals ever in Australian Business history, QANTAS will spend $191 million outsourcing its computing operations to two Indian software companies, Tata Consultancy Services, the IT arm of India’s largest company, and its competitor Stayam. TCS will pick up $120 million over the seven-year life of the contract. Competitor Satyam Computer Service’s chunk of the work is worth $71 million. TCS will provide, airline’s operational systems, such as logistics and air logs, while Satyam will handle back-office systems like human resources and finance..

QANTAS will spend $191 million outsourcing its computing operations to two Indian software companies at a cost of up to 300 jobs, in what is understood to be the largest offshore IT deal in Australian history.

Mumbai-based Tata Consultancy Services, the IT arm of India’s largest company, the Tata Group, will pick up $120 million over the seven-year life of the contract. Competitor Satyam Computer Service’s chunk of the work is worth $71 million.

Project leader TCS takes responsibility for the airline’s operational systems, such as logistics and air logs, while Satyam will handle back-office systems like human resources and finance.

In handing over the work, much of it relating to older and expensive programs, the airline expects to save $100million over the life of the deal.

The Indian outsourcing companies will create 300 jobs. Two hundred will be in India and 100 in Australia.

technorati tags: Outsourcing, BPO, IT-Outsourcing, Australia, Offshore, Callcentre, News, India, News

Westerners outsourcing themselves

For many decades, highly skilled graduates of India’s took jobs in many western countries, helping fuel the high-tech boom. For many years, US firms were wooing India’s computer science graduates with lucrative job offers and a chance to live in USA. Now, it’s India’s turn, many young Westerners especially Americans are discovering India as a land of economic opportunity. Currently, more than 10,000 American expatriates work in India for Indian information technology consulting and other outsourcing firms, a number that is expected to grow. So can we call it start of IND-US civilization?

 

More Americans are going with the flow of jobs to India, and finding challenge and opportunity!

NEW DELHI — Going halfway around the world for a job that pays about $11,000 a year hardly sounds like a great career move for an Ivy League graduate.

But for Michael Delfs, the chance to work in India and see the country’s economic boom for himself was all the incentive he needed. In August, Delfs, 26, became one of many foreign workers outsourcing themselves to India, following the explosion in jobs in one of the fastest-growing economies in the world.

“Going to India and actually seeing what was happening seemed like a good idea,” said Delfs, who graduated from Columbia University last spring and estimates he could have made about $100,000 in a job in the West.

technorati tags: Outsourcing, BPO, ITOutsourcing, India, USA, America, IndianNews, CallCentre

Indian outsourcing group to test applicants

Good News, finally some sort of proper recruitment procedure started. India will hold entry-level tests to gauge the abilities of people seeking jobs outsourced by U.S. and other overseas companies. The test will take place on 18th of November and will be based on the Test of English as a Foreign Language and the U.S. Graduate Record Examinations. The latter measures verbal and quantitative reasoning, critical thinking and analytical writing skills.

NEW DELHI - The main trade body representing software service companies in India will hold entry-level tests to gauge the abilities of people seeking jobs outsourced by U.S. and other overseas companies.

 The move aims to tap new talent and cut the time and expense of recruiting new hires to India’s outsourcing industry.

 Candidates who pass will be regarded as having the basic skills to work in the outsourcing industry, even though the qualification would not guarantee a job, said Deepakshi Jha, a spokeswoman for the National Association of Software and Services Companies.

technorati tags: BPO, CallCentre, Call-Centre, Outsourcing, Outsource, India, News

Indian cities best for outsourcing - survey

Three cheers for New Delhi !!

According to new survey New Delhi is most preferential city for any companies who are looking to set up their back office operation. The league table produced by outsourcing consultancy neoIT are also filled by others Indian cities — Bangalore, Hyderabad, Mumbai, Pune, Chennai and Kolkata.

NEW DELHI (Reuters) - New Delhi is the most attractive city in the world for companies looking to set up offshore back office operations thanks to its cheapness and a large pool of skilled labour, a new survey by a U.S.-based consultancy says.

The next six slots in the league table produced by outsourcing consultancy neoIT are also filled by Indian cities — Bangalore, Hyderabad, Mumbai, Pune, Chennai and Kolkata.

“The labour pool remains a huge advantage in India — you don’t have to spend lots of money training people up,” Sabyasachi Satyaprasad, a senior director at neoIT, told reporters in New Delhi.

technorati tags: Outsourcing, India, BPO, KPO, Delhi, NewDelhi, Mumbai, Bangalore, Hyderabad, Pune, Chennai, Kolkata, Offshore,

Study anticipates boom in outsourcing over the next decade

Recent study by Hackett Group says that outsourcing will be on boom in the next decade. Many US companies will outsource their jobs in order to save more money and cut expenditure. According to study Fortune 500 companies could potentially save $58 billion annually, or some $116 million per company, by offshoring general and administrative jobs.

CHICAGO — Job losses in the United States from outsourcing, already a touchy political issue, could mushroom in the next decade as companies shift hundreds of thousands