In Light of Outsourcing Challenges for Us It Companies, Why India Is a Competent Outsourcing Destination?
In light of outsourcing challenges for US IT companies, why India is a competent outsourcing destination?
In light of outsourcing challenges for US IT companies, why India is a competent outsourcing destination?
Executive Summary:
In this global economy era, all major US companies, to increase their technological edge, concentrate on building upon core competencies and reduce the operational cost are trying to offshore their labor intensive businesses to low-wage countries. In last two decades, India has emerged leader in providing IT services and has been the most popular destination for outsourcing. In reality, majority of outsourced jobs to India are landing in few cities viz. Bangalore, Hyderabad, Delhi and Mumbai. Unfortunately, such popularity and majority of IT jobs restricted to few cities comes with a price; Where IT companies at such places are witnessing escalating wages, accelerating turnover, higher attrition rate and cities are unable to build infrastructure fast enough to support the growth resulting in traffic jams, daily frequent power outages etc.
This paper discusses the outsourcing challenges of US IT companies related to destination and their increased relevance, in light of India’s current issues.
The common objectives of outsourcing Reducing operational and transactional cost and implementation of the outsourcing processes to meet those objectives, defines the various risks it could be exposed leading to undesirable results. To identify and ways to avoid or minimize such risks define the outsourcing challenges faced by an organization.
Few such risks that can be minimized or eliminated by choosing right offshoring destination that offers low-cast required talent, required functional, technological and managerial knowledge base, culture supporting language, communication and healthy organizational practices, strong financial, good quality standards, performance metrics, effective contract management and geographic location
In light of outsourcing challenges for US IT companies, why India is a competent outsourcing destination?
Executive Summary:
In this global economy era, all major US companies, to increase their technological edge, concentrate on building upon core competencies and reduce the operational cost are trying to offshore their labor intensive businesses to low-wage countries. In last two decades, India has emerged leader in providing IT services and has been the most popular destination for outsourcing. In reality, majority of outsourced jobs to India are landing in few cities viz. Bangalore, Hyderabad, Delhi and Mumbai. Unfortunately, such popularity and majority of IT jobs restricted to few cities comes with a price; Where IT companies at such places are witnessing escalating wages, accelerating turnover, higher attrition rate and cities are unable to build infrastructure fast enough to support the growth resulting in traffic jams, daily frequent power outages etc.
This paper discusses the outsourcing challenges of US IT companies related to destination and their increased relevance, in light of India’s current issues.
The common objectives of outsourcing Reducing operational and transactional cost and implementation of the outsourcing processes to meet those objectives, defines the various risks it could be exposed leading to undesirable results. To identify and ways to avoid or minimize such risks define the outsourcing challenges faced by an organization.
Few such risks that can be minimized or eliminated by choosing right offshoring destination that offers low-cast required talent, required functional, technological and managerial knowledge base, culture supporting language, communication and healthy organizational practices, strong financial, good quality standards, performance metrics, effective contract management and geographic location
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