The Indian companies like Infosys, Wipro and TCS are known for their cost effective offshore operating models. Now the latest phenomenon adapted by these companies is insourcing. The companies consider that it is more beneficial for the growth of the company to recruit home country employees rather going for cheaper employees in India.
Problem such as cultural difference, complexity of work and unhealthy service provided could be reduced with the insourcing strategy. There are many positive reasons which led these Indian companies to go for insourcing even though it is much expensive. The companies believe that the home country employees are well versed in delivering service to the clients as they are much more aware of the basic culture and standard requirements of the customers.
Indian company, Tata Consultancy Services (TCS) is planning to hire 2100 host country nationals by the end of this year. Infosys is also not far behind. According to sources the Bangalore bases Indian IT giant is planning for a quarterly recruitment of 250 American employees. The hiring is increasing every year. Vice president of talent acquisition Priti Rajora (Wipro) says that the company which already has 700 American employees is planning to recruit more 1,500 Americans.
It’s high time the companies realize that outsourcing business to offshore market has many advantages including cheap labour, but for a long run it is more beneficial to go for insourcing for the company to achieve ultimate service and customer satisfaction. The companies are also finding it very difficult to take employees from other countries to the United States. US government has raised the cost for visas also.
The recent allegation against Infosys regarding the temporary Visa fraudulence has also affected the hiring of employees from other countries. Hiring transnational and parent nationals have become a secondary option for the Indian companies functioning in the United States.
Insourcing has many advantages when compared to outsourcing. The growth of any company depends up on the efficiency of the employees in the company. Insourcing not only provides the company with excellent and skilled employees but also helps the firm to exploit the cultural significance of the home country nationals.
Earlier the Indian firms believed that the American employees are not much productive and very expensive too. Things have changed and Indian companies are ready to pay high for these American employees so as to avoid the complexity of outsourcing. Insourcing is going to become a growing with most of the Indian overseas players.
To conclude it can be said that Indian companies are looking forward to deliver high quality service for the customers in United States. Insourcing is the best tool at the current scenario to deliver high quality service. In the long run many companies are going to adopt this strategy for delivering high quality service and customer satisfaction. In this way Indian firms can effectively compete against the giants like IBM and HP.