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Corporate Strategy | "Alternate Outsourcing Destinations "

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Alternate Outsourcing Destinations

- by Shallabh Batra and Yogesh Potnis *

Page - 1

Executive Summary

This research paper focuses on the challenges posed by the emergence of alternate outsourcing destinations to the Indian IT/ITES/BPO/KPO industry.
In addition to the challenges posed by the ever rising client expectations and challenges internal to the industry, emergence of alternate outsourcing centers have brought along a few additional challenges unique to the industry.

The key challenges for the Indian outsourcing industry that have been identified are:

  • Lack of adequate workforce having foreign language skills

  • Low cost services offered by the alternate cheaper destinations

  • Better infrastructural facilities and government commitment to the industry

  • Development of sound & supportive regulatory environment

  • Also the major advantages offered by competitive outsourcing countries such as China, Eastern European countries; Philippines and Malaysia were identified and analyzed. On the basis of analysis of strengths of major competitors future roadmap for the Indian offshore industry has been proposed.

    In the future, the ingredients of a successful outsourcing business would be recruiting and training the right professionals, developing domain expertise, creating value for clients by offering highly differentiated services, providing dependable quality over time and building credibility alongside competing countries. To achieve these, many steps need to be taken at the strategic and operational level by both the government and the industry.

    Apart from these measures the two important initiatives taken by the Indian IT/ITES/BPO/KPO industry are:

  • Movement towards result based pricing.

  • Development of more stringent data security norms

  • These initiatives will help the Indian industry to sustain its competitive advantage in the future. By following these innovative measures India will emerge as role model for other developing countries.

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    * Contributed by: -
    Shallabh Batra and Yogesh Potnis,
    National Institute of Industrial Engineering, Mumbai.


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