To mind, whenever they hear of the companies looking for a viable destination to outsource their business operations, the India is often the first country that comes. The India has been the preferred outsourcing destination for so long that they have begun to think that no one can catch up with us, this is a delusion that they need to snap out of fast. The India faces stiff the competition from the other third world countries that are slowly making their mark in the outsourcing arena. The Lafford mentioned that even though it will be hard to compete with the likes of the India and China when it comes to skills emerging outsourcing destinations have culture, language, geography and cheap pricing on their side. Along with China, the India has some issued that cause existing clients to retracts their contracts and the potential clients to think of the another location to do the business.
The silicon India reports a downturn in worldwide economy, Satyams fraud case and the terrorist attacks in Mumbai and supply chain and shipping cost issues in China are causing US technology companies to pull back from the two traditional outsourcing location India and China. Aside from the competition and the other risk factors, the India has some issues that cause existing clients to retract their contracts and the potential clients to think of the another locations to do the business. The silicon India reports a downturn in the worldwide economy, Satyam’s fraud case and the terrorist attacks in Mumbai and supply chain and shipping cost issue in China are causing US technology companies to pull back from the two traditional outsourcing locations-India and China. The India faces that H-1B visa issues, otherwise known as the outsourcing visa. The critics argue that the Indian outsourcing firms use the H-1B visa as a medium to move jobs and the technology from the US to their native soil.
The related issues of H1B visas and outsourcing have once again come to the force and could prove to be a troublesome issue in India-US relations, the US citizenship and Immigration Service released data showing that four Indian outsourcing companies, Infosys, Wipro, Satyam and TCS accounted for more than 10,000 of the 65,000 H-1B visas issued by the US in 2008. The India’s troubles might echo out to the other outsourcing destinations but at a lower level, the outsourcing’s momentum might slowdown but it will not stop completely as a companies looking to cut costs to survive the global economic meltdown.
REFERENCE:
http://www.blog.infinit-o.com/outsourcing-india/
