IBG evokes UK to outsource to India

Indian IT and service providing companies are suggesting the UK government to access the economical business services from India in order to cope with growing economical pressure. Indian Business Group [IBG] – representative of 100 IT companies in UK is suggesting outsourcing to India to survive in the global competition. Prudential ICICI, British Airways, Thomas Cook along with other UK companies have already begun outsourcing to India in wake of cost-saving strategy.

Outsourcing business to India has grown steady as the offshore continues in large scale. The mass exodus by American firms to outsource business to cheaper countries, like India will be unhindered as the international competition tightens up. In a recent research by a firm in US - the shift-over of firms from America will continue despite of outcries and bills introduction. Outsourcing to India is understood to be a positive measure under the recent corporate trends emerging.

Clariant AG to outsource from India

As the horizons of outsourcing sector in India widens up several newer players are enthusiastically seeking opportunities to outsource in India. Swiss major Clariant AG, has identified Clariant (India) among its global outsourcing hub for raw materials, dye-stuffs and specialty chemicals.

In report published in Business Standard –MD of Clariant India, Prakash Rastogi said, “Clariant India is one of the three global outsourcing hubs identified by the group. The hub model of the parent organization was designed keeping in mind the specific competitive advantages of each of these countries.”

Clariant AG has over 100 group companies worldwide and it is worlds second largest specialty chemical producer.

NEWS SNIPPETS (The outsourcing buzz around – What the industry says?)

# Toyota Kirloskar Motor - the Japanese automaker will be investing $4.8 billion to set up a 100 per cent export oriented transmission unit, in its auto component parts unit near its plant at Bidadi in India, by June, 2004. The move comes in wake of strengthening the outsourcing capacity from India.

# According to the study, the U.S. economy enjoys at least two-thirds of the benefit from offshore outsourcing, compared with the remaining third absorbed by the country receiving the job. India is one of several countries benefiting from offshore outsourcing. But unlike most nations, it boasts what many consider a preeminent school for future technology workers. The Indian Institute of Technology, Kharagpur, is a virtual incubator for tomorrow's erudite engineer. News courtesy Plano Star Courier

Volvo turns to India for outsourcing

AB Volvo the Swedish automaker – one of the leading suppliers of commercial transport vehicles is looking towards India to outsource components for its manufacturing facilities in Europe and America. Ulf Nordqvist, managing director of the Indian subsidiary Volvo India says, "we have already set up a dedicated source for outsourcing forged components, cast parts and sheet metal segments for trucks”. Top European and US companies gradually eye outsourcing to India as a measure to reduce costs of operations. Volvo has already instigated a source for outsourcing forged components, cast parts and sheet metal segments for trucks.

Outsourcing to India has been on the steady rise. Volvo India has sold close to 600 in the Indian domestic market for a turnover of close to $61 million. Volvo is also seeking to outsource Information Technology (IT) requirements from Indian shores.

Bharti Teletech planning to venture into outsourcing

With the on-rise of outsourcing to India – Bharti Teletech is looking to venture into outsourcing. This move by Bharti Teletech – the manufacturing arm of India's leading private integrated telecom company Bharati Enterprises – comes in wake of the stoppage of production and outsourcing from China by telephone companies. Bharti Teletech is trying to capitalize over it.

CEO Pawan Kapur says here "we are looking at the export market where we are competing with China and efforts are on to tap the outsourcing market". Bharti plans to start outsourcing from April 2004 and export one million phones in the year. Outsourcing to India has grown manifolds due to its strong IT infrastructure and low labor costs.

LogicaCMG to increase staff by almost 400%

LogicaCMG offering services like management and IT consultancy, systems development and integration as well as outsourced management of targeted business processes is enhancing its manpower in India to almost 400% within next one and half years. The move comes in wake of growing Indian outsourcing industry. LogicaCMG recently bagged outsourcing contracts from a top FI in Holland as well as from major PSU from Britain. The hiring spree by LogicaCMG indicates the massive growth through outsourcing to India by companies from US and the European corporate sector. In a report issued by news agency PTI besides outsourcing of software work from India, LogicaCMG has expanding into new territories that includes South Asian countries like Sri Lanka, Bhutan, Bangladesh and Pakistan.

Outsourcing to India will grow: OVUM

European analyst and consulting firm OVUM has reported that India is likely to sustain and grow as a favored offshore outsourcing destination. The current trend (of offshore outsourcing) – Ovum says – is simply based on reduced manpower cost and IT firms across US are enthusiastically approving the concept. Outsourcing to India has shown mammoth growth for sometime now. Even the ruling GOP (Grand Old Party) – Republican has instigated a call-center in India in order to elevate funds for the party campaign in the forthcoming general elections.

Outsourcing to India is simply buoyed due to some peculiar reasons. The cost benefit that India provides is no more a point of discussion. The sine-qua-non is that India not only provides quality-driven services but the growth is also because of its strong IT impact. Ovum also points the repercussion in US against outsourcing of IT jobs to India. Instead of accepting the Indian strength in outsourcing sector – people are cribbing over Indian economy. Though it propels little change for Indian outsourcing industry.

Forbes: India is best for outsourcing

A study by business magazine FORBES has revealed that India remains as the most preferred destination for outsourcing due to the corporate and economical structure – that India enjoys. A study was conducted amongst the offshore outsourcing destinations like India, China, Russia, the Philippines, Canada, Mexico and Ireland. Outsourcing to India holds the advantage due to low wage structure, good English speaking populace and strong IT culture.

Outsourcing to India – Forbes said – will constitute business process services like accounts, inventories, call centers and data analysis. India’s friendly IT strategies and committed workforce put India above rests as the top-notch outsourcing center on the global corporate map.

Forbes: India is best for outsourcing

A study by business magazine FORBES has revealed that India remains as the most preferred destination for outsourcing due to the corporate and economical structure – that India enjoys. A study was conducted amongst the offshore outsourcing destinations like India, China, Russia, the Philippines, Canada, Mexico and Ireland. Outsourcing to India holds the advantage due to low wage structure, good English speaking populace and strong IT culture.

Outsourcing to India – Forbes said – will constitute business process services like accounts, inventories, call centers and data analysis. India’s friendly IT strategies and committed workforce put India above rests as the top-notch outsourcing center on the global corporate map.