Back-room boys to retain edge
posted in Outsourcing to India |Source: www.telegraphindia.com
India will remain among the top three global IT offshoring destinations in the long term despite the cost of talent going up in recent times, according to PricewaterhouseCoopers (PwC).
Though costs of working from India have gone up, the country beats others in productivity, ensuring it remains in the top bracket. Of late, Indian IT firms have been hit hard by rupee appreciation.
Juan A. Pujadas of PwC said firms were even restructuring their outsourcing processes to leverage India’s talent pool.
On trends in the industry, Pujadas, who is managing partner (advisory services) of PwC, US, said the money was in outsourcing of work in financial services.
“One of the leading offshoring segments globally has been financial services which have garnered savings of almost £4.5 billion a year for firms last year. India with its knowledge economy and specialised manpower can serve the sector effectively,” he said.
There has been an 1800 per cent increase in headcount in firms who are in the business of financial services outsourcing. In this segment, the ratio of staff in low-cost countries to total staff has gone up from three per cent to six per cent.
Over 75 per cent of the major financial institutions now have operations offshore, compared with less than 10 per cent in 2001.
Consulting is another growth area, Pujadas said. In India, the consulting business has been growing between 15 per cent and 20 per cent. In the last two years, the consulting business of PwC India has doubled.
