As the Philippines, India outsourcing companies are cutting pay and have put the brakes on hiring new staff as they battle against a global economic slump from the rivals in the countries. By the HSBC, the industry’s two largest players, the Tata Consultancy services and Infosys have begun the trimming quarterly bonuses. An outsourcing expert at the bank said that the move was linked to a slowdown in the revenues for the industry in India. Which is struggling because of rising costs and a trend among some of the foreign companies to move call centers back onshore. The hiring seems to have slowed down and many of these companies are now being cautious, an outsourcing expert at the Delhi based consultancy Everest Group. The slowdown in the recruitment comes as many Indian technology companies are shifting their focus operating call centers outside India.
The Chief Executive of Aegis, Aparup Sengupta said that a Mumbai-based outsourcing company that employs 57,000 people worldwide said that the trend was being driven partly bu a feeling among many Western companies that their customers were better served by the call centers staff more familiar with their own language and culture. The Indian can speak good English but it is still not easy for them to understand someone from. There can be misunderstandings which can really damage their brand.
In the Latin America, Europe, and Australia, the Aegis now employs only one third of its staff in India and it is expanding. It is recently hired 400 workers for a new call center in Costa Rica. The Wipro is the another big Indian outsourcer has opened call center in Romania and China. As the UK operation of the Santander banking group, several British based companies have moved their call centers from India to Britain for similar reasons. A former US colony that retains many American cultural values while the India’s outsourcing industry is still growing, it is being undermined in some areas by fierce competition from the other countries, that is most notably the Philippines.
In Indian, a recent survey by IBM found that there were now more call centers staff their in India. The contact Center Association of the Philippines says that 350,000 people are employed in the country, compared with India’s 330,000. The business in the Philippines raked in about £6.5 billion with the figure projected to rise. The India remains the world leader in the wider market for the outsourcing which includes software development jobs as well as the call center work but its lead is narrowing. The China’s Information Technology outsourcing is growing by 30 percent a year against India’s 14 percent.
REFERENCE:
http://www.theaustralian.com.au/business/world/indias-outsourcing-miracle-feels-the-chill-winds-of-competition/story-e6frg90o-1226131923369
