Growth of Offshore Outsourcing and ProtectionismWednesday, April 19, 2006
With growth of Offshore Outsourcing from United Kingdom at a rapid pace, protectionism and Business Process Outsourcing backlash is gaining voice in the nation. NASSCOM, an IT industry body told that the recent changes in laws of UK point to protectionism taking root in that nation for Offshore Outsourcing. The revision for the transfer of undertakings by protection of employment regulations indicate some signs of protectionism taking root in the United Kingdom that has so far been quite open to Offshore Outsourcing, said president of National association of software and services company
The new law by UK for transferring of undertakings protection of employment regulation passed in last week mandates organization to take over the responsibility of finance for employees that lost their jobs because of Offshore Outsourcing. But department of trade and industry in United Kingdom said that transferring of undertakings protection of employment regulation is applicable only for those employees that are shifted from UK to offshore nations under a new BPOservice vendor. It sought to give some king of security for employees of organizations when it was acquired by another company.
Earlier the regulations were basically applied for manufacturing organizations but now it has been amended for consideration in outsourcing services of Software and IT. Though it would not impact as bigger as one thought but the regulations on Indian organizations does matter for some concern. It is a very small step from the government to regulate & control, Mr. Kiran Karnik said.
Offshore Outsourcing in India
Today, we can see businesses of Offshore Outsourcing in India becoming increasingly competitive with global market, using Information Technology as a key enabler. The survey indicates the trend among Indian IT Outsourcing vendors for increasing the focus towards domestic market. In India the user industry is also outsourcing parts and entire IT infrastructure from specialized service vendors that need world class standards, and world’s best practices. Increasing usage of IT and adoption within the nations is enhancing competitiveness in the economy of India and the community of users.
The Offshore Outsourcing industry will require continuing the existing focus with sustaining of growth curve by adoption and investments. One hopes that the government will become a major IT services user through the program of e-governance. A favorable taxation policy and regime will give a boost to greater usage of IT for the nation with advantage and efficiency, productivity & employment. With the increased Offshore Outsourcing services adoption by user organizations in the nations, at both ends, operational & advanced levels, the phase of ongoing investment from the industry will require a gestation period for exhibition of full potential