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Advantages of Offshore Outsourcing
to India
“We have seen
savings of 50 percent in salary costs.
There is no shortage of the right people
to do the jobs, and the productivity
of the people is higher than expected.”
– Simon Bush, Standard
Chartered Bank, Head of Global Shared
Business Services in India
Offshore outsourcing is being done in
a dozen countries, but India has emerged
as the global model for offshore outsourcing
for these reasons:
- It has one of the world’s largest
pools of highly educated, English-speaking
workers (250 million), many with scientific
and technical skills. By 2010, India
is expected to be the largest English-speaking
country in the world.
- India has very low wages. Starting
salaries for IT engineers in India
range from $5,000-$10,000, low by US
standards but very attractive in a
country with a per capita annual income
of $500.
Financial institutions also benefit
from the unique partnership between the
Indian government and NASSCOM, the National
Association of Software and Services
Companies, which maintains a concerted
development effort aimed at attracting
ITO and BPO business. As a result, the
country has encouraged a favorable business
climate for US firms seeking India offshore
outsourcing services, and early concerns
about the business risk of offshore outsourcing
in India have been largely laid to rest.
In contrast to circumstances in the
US, the jobs that banks typically outsource
today are high status career positions
in India. Offshore outsourcing is a path
for career-minded individuals, a majority
of whom have master’s degrees,
to gain experience in the global economy.
In addition, because they hold positions
that embody the full mission of their
companies, they are proud of their positions.
Their pay is high by local standards
and they receive a variety of benefits
that American workers would find enviable.
View current research on this topic
by reading the following report:
Where
to Locate: Selecting a Country for
Offshore Business Processing,
Copyright A.T. Kearney, 2003. All
rights reserved. Posted with permission.
India offshore outsourcing
- Carretek
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