To Business Process Outsourcing, the India has a long been the dominant country when it comes on it. The national outsourcing asscoaition published a report titled the best practice outsourcing and offshoring which is pointed the issue Indian offshore providers face increasing operation costs forcing some providers to relocate their centers to a cheaper areas in India in order to compete more effectively. In emerging outsourcing destinations the move has not hindered a recent surge. From the NASSCOM conference, despite of the recent optimistic predictions, the India is experiencing effects of a global slowdown and reduction in IT.
The costs for the Indian vendors are also on the up, Indian BPO providers may not be the only ones experiencing increasing operational costs, the other offshore providers experience that as well but at a lesser extent as a countries including the Philippines receive a strong government support. As Infosys Technologies Limited, the proof of the Indian outsourcing providers struggles evident, forecasts its first annual revenue fall for the year. The INFY is looking for 12 to 15 deals worth $1 billion or the companies worth 10 percent of the Infosys revenue. The firm is considering acquisition in Europe, Latin America, Australia and Japan, it is a step that could help boost slowing growth by the geographical diversification. The best practice is to sign contracts with a base term of 3 to 5 with the extension clauses of up to 2 years. The short deals are more compelling as long term deals will often fail due to the pace of the technological advancement, changes in the business requirements and the other unforeseen events such as that the experienced.
The NOA’s quarterly Outsourcing Confidence Index study reveals confidence in the outsourcing industry continues to improve with the 40 percent of the outsourcing providers forecasting revenue growth, the providers are experiencing an increase in the high volume, low cost deals. The Noa’s finding support Everest Research Institute’s second quarter report on the global outsourcing and offshoring activity which shows outsourcing transaction volumes increased by 10 percent globally compared to the first quarter.
REFERENCE:
http://www.blog.infinit-o.com/the-changing-outsourcing-landscape/
