US giants showing inclination towards outsourcing

August 31, 2011: Foreign companies focusing on setting up more research & development and Business Process Outsourcing (BPO) units in India.

Indian BPO sector is witnessing new entry of foreign companies; the number of new units in India has considerably increased from the past few months. Thee are new 33 units set up in the country out of which some have already started generating good returns and some are planning to recruit more man power.

It might be a bad time in the U S economy environment. But U S companies are still keen to invest in cheap outsourcing destinations like India. The Everest group conducted a survey and according to the report delivered by the group companies such as Starwood hotels, Oracle, IP Infusion, Virgin Median and many other companies are planning to invest more in India. More over the outsourcing transactions were high in the past few months which were calculated to be 516 billion dollar.

The US companies strongly believe that investing in India will obviously help them to cut their cost. Even though in the previous quarter outsourcing in the banking sector was doing well, later on the sector seemed dull. Now it is the healthcare, hospitality and government sector which is focusing more on the outsourcing in India.   

One among the biggest company Oracle opened a new Research and development unit in the southern part of India and many other companies like Starwood Hotels has also invested for new outsourcing units in India. There is also enough information on many other US based companies planning to invest in the offshore market.  

Many US and UK based companies has begun units in other countries such as Philippines. This was because they found investing in other countries more convenient. But this trend doesn’t sustain for long, as the US and UK companies could find the quality in the service provided by BPO units in those countries. Companies are considering thinking twice before investing in near shore market also. Thus the strength of Indian BPO market is evident by this reverse trend.

Besides India there are many other countries that are developing to be good offshore market for the US and UK based companies. The demand for Indian service providers are still prevailing in the global business world. It is expected that more US and UK companies will find comfortable investing in offshore market such as India in the near future. India Business Process Outsourcing sector (BPO) has the potential to deliver world class service.

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