Will India Still Lead The Way In Outsourcing After The Terror Attacks?
News articles and broadcasts on India have been appearing in the U.S. media for over a decade. Media coverage has tended to highlight Indias outsourcing growth and the impact that the growth has had on our domestic economy. But recently, the public watched in disbelief as terrorists attacked Indias financial capital Mumbai.
Despite the devastation brought on by the attacks, India continues to be the dominant leader in outsourcing. The National Association of Software and Services Companies (NASSCOM), which acts to promote the Indian information technology service industry, maintains a membership of over 1,100 IT companies capable of delivering services outside of India. It has been estimated that over 1,000 major U.S. companies receive most, if not all, of their IT services from India.
As Indias vulnerability to the terrorist attack played out, industry leaders were faced with questions on the long-term impact that the attack would have in the outsourcing industry. Indian government and industry leaders were quick to reaffirm their position that India continues to be a safe place to do business. Indian offshoring companies also reported that their customers were not impacted by terrorist attacks. They were quick to report that their customers generally have business continuity agreements that specify that their work would be processed from other centers located in other cities. The contract ensures that their customers will not be impacted by the terror attack, nor by any natural or man-made emergencies.
India does have a highly-developed infrastructure focused on the outsourcing market. The majority of the outsourcing companies have a presence in multiple cities across the country. They also have disaster recovery plans, business continuity plans and security procedures. The plans include redundant infrastructure and network capabilities required to backup their centers in the event of emergencies. Many of the plans have been in place for years and are used as a marketing tool to win the early adopter offshore outsourcing clients.
There are offshore companies in over 30 countries that are promoting offshore outsourcing services. China, Malaysia, the Philippines, Eastern Europe and Latin America are strong contenders in this arena and are positioning themselves as the next destination of choice for outsourcing services. Today, however, India continues to be the dominant leader in offshore outsourcing. The attacks have not altered Indias capabilities or resilience to maintain this leadership position.
While the attacks may have a short-term impact on the nations economy, the outsourcing industry will continue to flourish. And though India still is the offshore location of choice, it is prudent to evaluate additional locations to reduce geopolitical risks.
Despite the devastation brought on by the attacks, India continues to be the dominant leader in outsourcing. The National Association of Software and Services Companies (NASSCOM), which acts to promote the Indian information technology service industry, maintains a membership of over 1,100 IT companies capable of delivering services outside of India. It has been estimated that over 1,000 major U.S. companies receive most, if not all, of their IT services from India.
As Indias vulnerability to the terrorist attack played out, industry leaders were faced with questions on the long-term impact that the attack would have in the outsourcing industry. Indian government and industry leaders were quick to reaffirm their position that India continues to be a safe place to do business. Indian offshoring companies also reported that their customers were not impacted by terrorist attacks. They were quick to report that their customers generally have business continuity agreements that specify that their work would be processed from other centers located in other cities. The contract ensures that their customers will not be impacted by the terror attack, nor by any natural or man-made emergencies.
India does have a highly-developed infrastructure focused on the outsourcing market. The majority of the outsourcing companies have a presence in multiple cities across the country. They also have disaster recovery plans, business continuity plans and security procedures. The plans include redundant infrastructure and network capabilities required to backup their centers in the event of emergencies. Many of the plans have been in place for years and are used as a marketing tool to win the early adopter offshore outsourcing clients.
There are offshore companies in over 30 countries that are promoting offshore outsourcing services. China, Malaysia, the Philippines, Eastern Europe and Latin America are strong contenders in this arena and are positioning themselves as the next destination of choice for outsourcing services. Today, however, India continues to be the dominant leader in offshore outsourcing. The attacks have not altered Indias capabilities or resilience to maintain this leadership position.
While the attacks may have a short-term impact on the nations economy, the outsourcing industry will continue to flourish. And though India still is the offshore location of choice, it is prudent to evaluate additional locations to reduce geopolitical risks.
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