By Tony Hallett, 17 November 2003 16:20
NEWS Despite a range of challenges, India isn't about to be overtaken as the top location for offshored IT and other business activities, according to the co-founder of the country's best-known tech success.
Speaking to silicon.com Kris Gopalakrishnan, COO and co-founder at Infosys, maintains that price and quality of work aren't India's - and Infosys' - only advantages.
Keeping salaries low is key to keeping offshoring attractive and there are those that say facilities and jobs - for IT, software development and business process outsourcing (BPO) - will go to other locations the more successful India becomes.
Recent research shows some 40 per cent of software development is taking place offshore now but Gopalakrishnan said that other potential rivals, such as China and Russia, don't have the same English language skills as India, and some that do, such as the Philippines and Sri Lanka, don't have a sufficient number of recruits.
"Today, we have a lot of supply," he said. "Even BPO jobs are seen as aspirational jobs to have."
Transcribing medical notes is a common offshore activity, often carried out overnight from businesses in the UK and US, and it has been known for doctors in India to move into such BPO work because of better pay and conditions.
Infosys now employs around 20,000 staff around the world and is set to reach $1bn in annual revenues by next spring at a growth rate in excess of 35 per cent per year.
However, Gopalakrishnan paints the picture of a company torn between policies that further Infosys' own business - clearly one that is doing well as more jobs move to India - and those that mean overall improvements for the country. For example, with the rupee appreciating, the cost of India-based services becomes more expensive but the price of essential equipment bought overseas - for developing national infrastructure - typically falls.
"Overall, developing the country is beneficial to us all," he added.
Infosys now has eight major offices around India and will be expanding further around the world. It recently announced its Rapid Offshoring Framework but remains sensitive about which Western companies it is working with.
Comments
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1. anonymous
Infosys is now implementing his new branch in Mauritius (Indian Ocean). Mauritius is about to become the most promising cyber island in the region with extreme possible future development and advantages for investors worldwide.
2. Peter Hope
Recently I have been contacted by gas and electricity companies asking me to switch suppliers. The callers are clearly based in India. On both ocassions the line was so bad and the quality of the English so poor I had to put the phone down on the caller. So far my experience and that of many I speak to is similar. It seems to me sending your call centre work overseas is a recipe for losing rather than winning business.
3. anonymous
And then there is the story of a hospital/clinic in the states that sent their notes for transcribing to India.
The person doing the work wanted more money and threatened to put all the notes on the internet if they didn't pay up and e-mailed them the transcribed notes to show that she had them.
With no protection for our data or who is handling it, how safe is it to have your personal information shipped overseas
4. rs
I have occasion to contact two different telephone technical support staffs (for website management and LAN management). Both staffs are based in India. While English spoken (heard, actually) w/ an accent poses some small problem for me, the Indian agents 1. are courteous 2. and speak English accurately. American agents with whom I've spoken have the knack but lack the grasp.
5. C W Fletez
Your article is right on target suggesting customer backlash. This is precisel why Dell, in the US, is rerouting most of its customer servicefor tech issues to people in the US. Failure to understand the problem reported and reading from manuals to the client were the reasons cited if I am coarrect. This means that even an 'English' speaking country lke India may nota understand all the nuances of high tech when cited over the telephone.
Many of us in the know in the US refuse to purchase products from companies who outsource. I am definitely one of them.