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Backlash not to hit outsourcing

New Delhi, June 24: Indian software and information technology-enabled service companies should not be worried by the growing backlash against offshore service providers in the United States as this trend is likely to die down.

Gartner Inc today said the small but growing backlash against offshore service providers in the United States was a result of the current downturn in the economy and will not affect the trend towards offshore BPO.

“We are witnessing a disaggregation of the vertically integrated enterprise and a strategic shift in the way business is evolving in a growing global economy,” said Sujay Chohan, vice-president (research) for Offshore BPO at Gartner.

Currently, there are 1,50,000 to 2,00,000 people employed offshore in the call and contact centre business, predominantly in India, the Philippines, Ireland and a host of emerging destinations across the world.

The anti-outsourcing tirade from local trade unions and local government bodies is primarily a result of the relocation of labour-intensive business transactions, such as contact centres and transaction processing work to lower-cost locations. Large multinational corporations such as GE, American Express, Proctor & Gamble have built large shared service centres in locations like India.

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