software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, March 21, 2006

Union alerts of new wave of Offshore Outsourcing

Financial services union alerts of new wave of Offshore Outsourcing. According to them this services is about to take place in the United Kingdom's financial service sector, in spite of increasing labor costs in the countries like India and others. In these countries Offshore Development services are getting more and more costly as the labor rates are on the rise. Survey suggests that organizations going overseas on Offshore Outsourcing projects would find a very different business culture and environment in India to the one the overseas initiators encountered in the year of 2003. In the countries like India labor costs are rising by 15 percent a year. Another thing is the staff turnover which is also going up to 70 percent and there is a calamity across middle management stages that are not well equipped with the right and proper skills and talents to manage Offshore Outsourcing projects.
Survey also suggests that there is rising evidence of calamities in the Indian call centre services and back office industry areas. Companies are finding it tough to find enough talents and skills with lower rates to serve for overseas projects and services. This is because of the rise in the labor rate. Organizations must take notice that the environment and culture in India is changing remarkably and the industry is under pressure to live up to the anticipations of the United Kingdom financial services which forecasts its business case for overseas services on low cost budget, better quality service and manpower flexibility. These hypotheses are being tough day by day.

Offshore Outsourcing work

UK bank Abbey that started its Bangalore service facility two years back was one of the first British banks to go for Offshore Outsourcing work to lower overseas centers in Asia region. Though rumors out sided in October last year 2005 that the bank was in view of closing its call centre office and services in Bangalore, India and bringing the 1000 jobs it initially offshored back to Britain. This is due to the company is finding the rise in the labor rate and they are getting expensive day by day. So company has decided that it is better to stay onshore rather than going for Offshore Development and services. But regardless of the public backlash against Offshore Outsourcing and increasing fears about the security and safety of clients data at overseas call centers and offices, many financial organizations are stepping up moves to overseas operations and services to cheaper countries like India and many more.
Research also declared that by consultancy Deloitte in November released that international financial service organizations are anticipated to move as much as 20 percent of their total manpower to cheap labor destinations in the time period of next four years for Offshore Outsourcing. The views of the survey and the acts of the companies are totally different as the survey suggests not going for Offshore Development services to the countries like India, while the companies are sending more and more jobs to such destinations in spite of raising the cost of the labor.
Though it is true that the labor cost are rising in the countries like India and other, but still many countries prefer these countries for the purpose of Offshore Outsourcing.