October 3, 2011: Banks in Europe, least bothered about uncertain economic climate……..
Some of the top Banks in Europe are not panicked with economic crisis being foreseen. Most of the banks are well focused and knew very well what they have to do at this point of time. Banks are finding it more beneficial to increase there investment into offshore outsourcing, particularly to market such as India as there is assured benefits in return form offshore.
The most preferred offshore vendors or service providers are the Tata Consultancy Services (TCS) and Infosys. As far as European banks are concern they are more conscious on the investments made in the offshore. While comparing the multinational vendors such as IBM and Accenture with pure Indian vendors it is more beneficial for the banks to exclusively depend of Indian offshore vendors as the service providers in the nation are well equipped with quality service delivered on time.
At this time of economic issues, the banks rely on Indian service providers due to several reasons. One among, which has been given the first preference is that companies such as TCS and Infosys, assures timely services as they are least affected by the economic down trend. Where as multination companies are directly affected by recession and thus end up in delayed services, lacking of enough resources required. As a result banks which were spending around 20 % of their IT budget for outsourcing has decided to increase it up to 30 %, this proves that timely delivery is what these banks are concern of which could only be delivered by offshore Indian companies at present.
As far as Infosys is concern the overseas banks has rated it bit expensive, but assured services on time being guaranteed by the company makes banks ready to spend more. Another most preferred company TCS is rated top for range of offerings the company assures. At present the ration of investment between Indian offshore service providers and captives is 70:30 which is expected to reach around 50:50 in the near future.
The decision taken by European banks can be considered as an answer to many. There were speculations on the future business scope in the offshore as emerging near shore and onshore vendors are given more priorities by global players now a day. But it should be understood that Indian IT and BPO industry hold immense potential and experience to fulfill any requirement of clients. Indian outsourcing sector has always been the most preferred and would maintain the position in the coming years. It is also expected that Indian Business Process Outsourcing sector might grow at a rate of 16 to 18 percent in the coming financial year.