Outsourcing to India : U.K. Companies set sights on India
After the United Stated the Nation laying its bets on the Outsourcing Industry in India, it is now the turn of United Kingdom (U.K.) --- British Companies from diverse backgrounds such as Life Insurance to Communication as well as Publishers of Science, Technical and Medical Books have set sights on Outsourcing jobs to India.
To commence with, Norwich Union, Britain’s largest Life Insurance Company saved £140m by Outsourcing majority of its jobs to India, according to the company’s CEO Gary Withers. He said Norwich Union plans to achieve savings of a further £130m within the next three years, which is likely to include growth in the Outsourcing process to India. The British Company has announced plans to raise £1.7bn by securitising its equity release. It has also laid out plans to increase its market share by more than 50% over the next few years. Mr. Withers informed that Norwich Union would use the funds from the securitisation to capitalize on growth in the Outsourcing sector and plans to increase its market share from its current 12% of the British life and pensions market to 20% by the end of the decade.
Another major Company doing the rounds of Outsourcing jobs to India is the UK-based Publishing Company Alden Group – Publishers of Science, Technical and Medical Books is actively looking at the option of leveraging its overseas experience in India by Outsourcing jobs to India.
The $25 million Alden Group first entered India through a joint venture during the period 1998-2000. Set up a wholly owned subsidiary and grew its operations in Chennai from just 20 people to over 400 now. Recently, this British Company set up a unit in Trichy (Tamil Nadu) with about 50 people. “We are looking to expand our operations in both Chennai and Trichy. We would add about 150 people in the next one year, ” said Mr William Alden, managing director, Alden Group. The group has already shifted almost 80% of its operations to India from UK.
Joining the bandwagon is British insurance major Royal & Sun Alliance (RSA), which has announced that it would shift as many as 1,100 Outsourcing jobs from Britain to India in the next two years. The shift is expected to save the company more than 10 million pounds a year. The Outsourcing jobs would cover a range of front and back office functions, including call centre posts.
Some of the major and most familiar Reasons for Outsourcing to India as mentioned by these British Companies varied from Cheap Manpower that is available in the form of energizing young graduates to Low Wages to the growing desire to compete better in the global market with attractive pricing. Also, the Commendable Professionalism shown by Indian employees and The infinite opportunities for Greater Operational Flexibility has made many of these Companies put on their Thinking Caps and then, sees themselves laugh all the way to the Bank!
Some of the major and most familiar Reasons for Outsourcing to India as mentioned by these British Companies varied from Cheap Manpower that is available in the form of energizing young graduates to Low Wages to the growing desire to compete better in the global market with attractive pricing. Also, the Commendable Professionalism shown by Indian employees and The infinite opportunities for Greater Operational Flexibility has made many of these Companies put on their Thinking Caps and then, sees themselves laugh all the way to the Bank!
Priyanka.S.
