In the magazine of Forbes, it stated there that even though Business Process Outsourcing gives substantially to the country’s revenue and drives 30 percent growth in Information Technology exports, it would be a challenge as other English-speaking countries will start to erode the country’s cost advantage. The Philippines is becoming a serious competitor then there English-speaking countries are starting to erode India’s cost advantage. China has the advantage of “more comprehensive and reliable than India and it is the another growing rival. Chinese is bigger than of non-resident Indians especially in the US and Southeast Asia.
Another rival of India is Vietnam, Vietnam emerging a lower-cost rival to the Indian firms. The cost ladder are French-speaking Seychelles or Mauritius who have the language advantage in European markets. The giant Tata Group’s consulting arm TCS , Infosys and Wipro are the India’s three leading Information Technology companies. It is about 80 percent of their revenue from overseas sales and 80 percent of that is accounted by the US. There is a nine states that are considering an anti-outsourcing legislation, this is a weakening Dollar and the Political scrutiny in the US. It has put pressure on India’s Information Technology sector to diversify its export markets.
In Northern Ireland, one Indian company has even set up a new call center, this is a sort of reverse outsourcing. However , in France and Germany there is much slower going in non-English speaking world though that is starting to change notably. Speakers in India, a lack of French and German speakers is an obstacles to overcome.
Forbes.com Editor Paul Maidment said that there are two ways, the Indian firms are seeking to meet the challenge. By moving more into R&D is the first. One of the area that is specializing in is the Satellite-mapping technology. The Microsoft has moved one of its mapping projects in India. The second way is by more vertical integration, this is to offer clients a more comprehensive range services. This is driving some of the International acquisition Indian Information Technology are making, including the US with UpStream, Aegis Communication and Essar Teleholdings.
They are buying outsourcing operations in lower-cost countries like Mauritus and the Philippines. Most of the multinationals now pick and choose the services they buy from many international markets and it has the reach and scale, this is to reach and scale to make a cost effectively way of doing things. Some of the Indian regional accents have proved easier to remodel than those from the south.
When you outsource expect that you will have many competitors because in Business Process Outsourcing is one of the biggest trend nowadays wherein most of the countries and companies now outsource anywhere. Every outsourcing companies make best performance and development for them to have many clients so that they will have a big impact in the society. Everyone has a chance to outsource, but still people should know their rules and regulations when it comes to outsourcing and also people should plan first.
REFERENCE:
http://www.callcentersindia.com/displaynews.php?idnews=58
http://articles.economictimes.indiatimes.com/2010-01-11/news/28420894_1_outsourcing-industry-outsourcing-hubs-service-providers
http://www.offshoringtimes.com/Pages/2006/offshore_news1125.html
