Monthly Archives: June 2010

Is India Losing Its Momentum in the Outsourcing Race?

Posted on June 17, 2010

During the past decade, India has been leading the global outsourcing industry primarily through its huge pool of IT graduates and English-speaking workforce. However, of late there has been tremendous concern about whether India is fast losing its place as the leader in the outsourcing race or not. ValueNotes, an analyst firm focused on outsourcing, has identified two potential “situations”, which give you an idea about the future of the outsourcing industry in India.

Growing Competition?

According to a survey conducted by the global consultancy firm PricewaterhouseCoopers (PwC) and Duke University’s Offshoring Research Network, the outsourcing industry in India is likely to transform due to the emergence of new providers. Although India remains the outsourcing market leader, stiff competition is expected from China, Philippines, South Africa, Eastern Europe, Latin America and the Middle East.

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Outsourcing Can Backfire if Not Planned Well

Posted on June 10, 2010

Outsourcing is a major business decision that has to be taken after much thought and deliberation. Any company deciding to outsource its business services needs to construct an efficient and stable outsourcing plan after the consideration of a number of factors like, the time required to complete a project, the available expertise, the types of services being outsourced, the capability of the offshore vendor to maintain confidentiality and the current market forecast.

To prevent a possible backfire as a result of outsourcing, a few rules are to be followed during the planning of the outsourcing process.

  • Never outsource a core business process:
    The core business process of a company is vital and should never be outsourced. According to Simon Muthiora, the executive director of Skills Geographic Kenya Limited, a human resource recruitment company, “Core responsibilities that require experts are not outsourced. A company cannot outsource the services of a chief accountant. You may choose to retain a permanent employee for this and outsource payroll accountants.”
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Is India the Global Knowledge Process Outsourcing Hub?

Posted on June 2, 2010

High quality work delivered by Indian BPOs has led to the gradual development of another aspect to global outsourcing: Knowledge Process Outsourcing (KPO). Knowledge Process Outsourcing is information driven and a niche industry that is constantly engaged in the process of creating and dispersing business-centric information. According to a report by GlobalSourcing, the Global KPO industry is worth USD 17 billion, of which India is expected to attract as much as USD 12 billion. The Indian KPO industry plans to mop up this money by growing to a 250,000 strong professional sector, probably one of the largest in the world.

What Makes India An Attractive Destination for KPO Services?

Well, India has a huge English speaking population, technically trained and qualified in a diverse number of sectors. Indian companies deliver high value to companies by providing domain specific expertise rather than mere process expertise. These processes demand advanced analytical and specialized skills from knowledge workers who have extensive domain experience to their credit. In hindsight, outsourcing of knowledge process functions is more challenging than Business Process Outsourcing. Knowledge professionals in India have extensive knowledge of domains such as:

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