Post #1

01-16-2005, 04:24 AM
Krish
Newsletter/Forums Member

Hi All,

Am here to take opinion with regard to BPO business between USA and India.Majority of Indian IT Organisations depends on projects outsourced from US or UK markets. Further to 9/11 attack it is not very stable. At first the issue was 9/11 attack which affected quite a lot of IT giants like Wipro, Infosys, HCL etc. The second issue came up was the decesion by US Govt not to Outsource the projects when US themselves have the resources to do the job. Recently the value for US Dollor came down to a great extend.

Taking all these points into consideration do you think BPO between US-India is on a thin rope or it is on concrete base.Basically what will be the projected life of BPO between the two countries.
Please add you opinions and suggestion
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Moni Krishnan
krish@ameinfo.com
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Last edited by Krish : 01-16-2005 at 04:31 AM.

Post #2

01-19-2005, 03:10 PM
Oystein Konsmo
Moderator

Hi Krish,

This is a tough question. Here are my thoughts. I do not think the current U.S. policies will impact the outsourcing business between the U.S. and India much. If this will be a factor later is hard to say, but personally I do not think so. The currency fluctuation could impact the number of projects, but I do not think it will be a big factor yet. As long as India has comparative advantages relative to cost and quality of the services you provide, companies will still look to India for their product development and customer service functions. Over time your comparative advantages will most likely decline as your wages will increase, and you will see more and more competition from other countries. Hence, I believe it is inevitable that Indian companies must start developing products, software and associated services as the next step in your "information technology life cycle" and sell to the international market place.

Best regards,

Oystein Konsmo

Post #3

01-20-2005, 07:05 AM
Charles Mills
Principal Moderator

We are seeing -- with the purchase of the IBM PC division especially -- how China is moving up from being just a very cheap place to make stuff to finding a real place in the world economy. There may be a lesson in there for India.
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Charles
CharlesMillsConsulting.com
StrategicDueDiligence.com

Post #4

01-23-2005, 08:44 PM
Krish
Newsletter/Forums Member

Thnx for the pat- Oystein.

I really agree with you Charles. Indian companies are bit concerned and trying to raise to the level as they are closely watching the growth of China.

So far India is maintained a major share in BPO; no wonder if China takes that place. They are tracking from the root itself.

I'll be really happy if I receive any more opinions.

Post #5

01-25-2005, 04:14 PM
Dave45000
Newsletter/Forums Member

But, problems are opportunities. So make the most of what is for us and for you a fleeting issue. All code will be Chinese in twenty years. And, they aren't the ones that have threatened the U.S. with an infowar.

If you do start developing your own products, let the Chinese code them. Don't hire Indian coders, because that will drive your costs up.

On quality, Boeing shipped all their documentation work to Chilie, where there are no native English speakers. Their expectation is that they can accept three times the rework and still come out ahead. Don't think quality matters.

And, why do we offshore? To have investment monies for other more value-added products and services. Guess what! They aren't software.

The software industry is less than 3% of the U.S. economy, so why should our goverment care what happens to our industry. Blaming math and science scores is bogus. Subsidizing education is bogus. Where there is no opportunity, no one will go. So while it might look like manna from heaven, it isn't. It's short-term. Plan for that.

And, last, of course, the world ends in 2008. Might as well start the countdown timer.

David Locke