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Friday, July 15, 2011

India losing its sheen as IT outsourcing hub?

India losing its sheen as IT outsourcing hub?

India may lose its outsourcing ground as UK companies are gradually shifting back their work to their home country. According to a report, India may no longer be the favored destination for call centres from the United Kingdom.

This shift in trend is expected to be triggered by the high jobless rate in UK coupled with growing costs in India. In addition, UK companies have realized the need to maintain better relationships with their customers. All these factors have strained companies like Aviva, BT and Santander to move their call centre services back home.

UK insurer Aviva shifted some jobs from its Indian BPO partner WNS to UK, earlier this year. Sources revealed that it was facing quality issues in terms of customer services.

Seeing the change, UK BPO majors Serco and Capita have also been vigorously tapping UK-based call centres' capability in recent months, experts cited.

Santander is likely to create 500 new jobs in the UK while New Call Telecom will generate about 100 to develop in-house service segment.

Though these figures seem small in India, it has a significant value in the UK. The shift will not immediately affect India considering over 2 million people are employed by the Indian IT-BPO sector.

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