Challenges and Opportunities in Outsourcing to India
Challenges and Opportunities in Outsourcing to India
Gulf has its natural resources in Crude oil and South Africa in diamonds. In a similar manner, India’s natural resource lies in skilled manpower. This is one of the reasons as to why India had become the biggest hub for outsourcing. The extensive knowledge of management, technical and other services with a large number of English-speaking population makes India one of the most favorite countries to outsource jobs to, by the companies of developed nations. The growth of software export and development of a number of Web solution companies has started displaying India’s success to the world. The biggest IT companies of the world including Microsoft, Intel and Cisco have already started working with India for a long time and look forward to further expansion. There are innumerable opportunities in this sector but success comes through a path filled with challenges. Challenges related to establishment, data security, maintenance, proper functioning and settlement of any disputes have seen a rise in the past few years.
One of the challenges is the human resource issue. With the sudden growth in the BPO sector, it is becoming increasingly hard to find good and hard working employees for middle and upper level management. Also stealing of employees from other companies (poaching) has become an issue and companies are spending a lot of money and time to keep their existing team of employees intact. Also with the high cost of training involved, frequent hiring and losing of employees to other companies is not a feasible option.
One of the biggest challenges that this industry is facing is the issue of rising cost and salary. Salary of employees in this sector has seen a rise of over 15 percent per annum in the last few years. This is making it more expensive for the companies to outsource jobs to India. This directly impacts the cost of providing service to the end consumers and has therefore, led to companies looking
Gulf has its natural resources in Crude oil and South Africa in diamonds. In a similar manner, India’s natural resource lies in skilled manpower. This is one of the reasons as to why India had become the biggest hub for outsourcing. The extensive knowledge of management, technical and other services with a large number of English-speaking population makes India one of the most favorite countries to outsource jobs to, by the companies of developed nations. The growth of software export and development of a number of Web solution companies has started displaying India’s success to the world. The biggest IT companies of the world including Microsoft, Intel and Cisco have already started working with India for a long time and look forward to further expansion. There are innumerable opportunities in this sector but success comes through a path filled with challenges. Challenges related to establishment, data security, maintenance, proper functioning and settlement of any disputes have seen a rise in the past few years.
One of the challenges is the human resource issue. With the sudden growth in the BPO sector, it is becoming increasingly hard to find good and hard working employees for middle and upper level management. Also stealing of employees from other companies (poaching) has become an issue and companies are spending a lot of money and time to keep their existing team of employees intact. Also with the high cost of training involved, frequent hiring and losing of employees to other companies is not a feasible option.
One of the biggest challenges that this industry is facing is the issue of rising cost and salary. Salary of employees in this sector has seen a rise of over 15 percent per annum in the last few years. This is making it more expensive for the companies to outsource jobs to India. This directly impacts the cost of providing service to the end consumers and has therefore, led to companies looking