On Outsourcing of Jobs to India

by V.A.Ponmelil (All rights reserved by the author)

Outsourcing of Jobs to India

Indian outsourcing is the best way to cut application development and maintenance costs, deal effectively with the problems of software demands, and focus on more strategic work. It is estimated that around two-thirds of all Fortune 500 companies are outsourcing jobs to India. Besides, successful outsourcing to India is still difficult. Even though the market is matured, telecommunications have improved and English fluency in India has flourished, challenges still remain. There are cultural issues, high service level expectations, more transitional costs, and expensive ongoing management relationship. There are many concerns related to outsourcing from Indian perspectives. Some of them are given below.

Intellectual Property Patents

Even with India's experience and edge in software development, there is a very little attention being paid to the value of Intellectual Property. Also patenting is a powerful weapon to retain edge in a competitive marketplace. But Indian companies are blinded by their focus on growth, and unable to see the implications of not owning IP around their service business.

Employees’ Health Issues

Most of the Indian Companies are focused on the low end of the BPO and IT enabled business and these companies are in danger of being affected because of the sheer monotony of the job and tweaking with the normal biological clock. There are lots of health issues and boredom because of the tampering with the biological clock of the employees. 

Growing Competition

There are growing competitions from other countries which are emerging as powerful threats high up the value chain.

Pricing Factors

There are many issues related to pricing. The fixed price projects accordingly time and materials-charged deals will be the strategy. Apart from this, the other factors are sizing, estimation, project management and the change of management. The value pricing is the most important factor to consider at any point of time.

Growing Resentment among Americans

Many Americans are unhappy about outsourcing jobs to India as it is affecting the economy of their country. India is yet to explore the probability of the outsourcing jobs of Europe and other countries. Hence, the growing resentment among Americans is a cause of great concern to India.

Quality Factor

Due to certain factors such as the poor communications, poor methodology, and inconsistent quality, many support teams are being moved back to US.

Security

Many stringent legal frameworks are still required in dealing with the data protection and the IP rights issues, creating awareness about protecting sensitive information from unauthorized disclosure, highlighting the need for international security standards, ensuring robust verification and auditing process to track development of software code.

Attrition

In Indian BPO, the attrition rates are far too high and this has led to bad service level impacts for ongoing improvements. 

 

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