The Telegraph
Since 1st March, 1999
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Only the skilful will survive

Calcutta, Nov. 18: Only 1.5 per cent of the $127-billion worldwide outsourcing trickles down to India, but the industry is upbeat about the immense potential of the country. There is, however, a flip side to the entire story.

Cost, which gave India the winning edge in outsourcing, will face stiff competition as more countries enter the race. Besides China, the Philippines, Vietnam, Ghana, Ireland and Russia offer varying degrees of advantages.

neoIT managing director Avinash Vashistha said, “China will catch up in the next three years. Smaller call centres find the Philippines an attractive destination, while technology development companies choose between Russia and India. Low-end data entry jobs flow down to Vietnam and Ghana. Companies with multilingual requirements look towards eastern Europe. This means that India will have to find a competitive advantage by upgrading itself to a skilled service provider in different verticals to retain the lead.”

neoIT assists companies in maximising their returns from offshore sourcing of IT and BPO and provide services ranging from knowledge systems and planning to transition and management of resources.

Tata Telecom, an equal joint venture between Tata Group and communications solutions and service provider Avaya, has launched an initiative to further the buoyant contact centre market among US companies.

“The Global Connect initiative provides an interactive platform for global clients looking for BPO investments in India. It also provides them an opportunity to get a first-hand feel of the services and facilities provided by the country and challenges that may be faced,” Tata Telecom vice-president Raman Mahajan said.

Mahajan added that most clients feel that bandwidth costs in India are on the higher side, but the availability of skilled manpower and cost advantages more or less make up for it.

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