Will India Inc spell the death of UK PLC?

gallery

Business and IT decision makers have plenty of operational issues to deal with. In between worrying about reporting to the board, the strength of the pound, cutting costs, improving productivity and ensuring end users, customers and shareholders are happy, they've now got to add yet another issue to the mix: offshore outsourcing.

Despite mixed views on what sending work abroad, whether that be back office processes, coding or customer service work, there is no doubt that businesses everywhere need to consider the possibility that offshoring might just be more viable than the way they operate now.

Some believe that the offshore model is a good thing for all concerned, some maintain that Britain is only great if everything we touch is made or sold here, while others remain either confused or on the fence, even though all of us rely on imported goods to some extent to go about our daily lives.

Mention offshore outsourcing to those in the know and the first country that springs to mind is India. Closely followed by China, Russia and many other of our Eastern European compadres.

Those involved in the Indian offshore market don't really see what all the fuss is about. They say they're about creating more wealth for local people, sustaining local economies and helping to make the most of the increasingly global nature of the world we live in.

Granted, people are no longer tied to the country in which they were born and rather than just heading to the nearest city where the streets are supposedly paved with gold, many are sailing or flying to the find the Holy Grail.

"Today's model is a highly inclusive model and it is not about countries battling with each other," B. Ramalinga Raju, co-founder and chief executive of Satyam and also chairman of the National Association of Software and Services Companies (NASSCOM).

"They are battling against the issues of creating value, fighting poverty, addressing healthcare and education issues and so on and so forth."

Satyam is not alone in its thoughts. Many speakers at last month's NASSCOM 2007 event agreed that the world has become a much smaller place and that countries that wish to be successful must start to look outside the box and embrace the global economy.

Being a truly global player doesn't just mean dipping a toe in the water, it means investing in local talent and local resources, which many players are starting to do.

Established India outsourcing companies like Infosys, Tata Consultancy Systems and Wipro Technologies have all recently beefed up their UK presence.

And Satyam recently opened an offshore development centre in Nanjing, China, highlighting that it views the country's emergence as a competitor for the offshore spotlight as more of an opportunity than a threat.

"We are very pleased to be able to establish this facility in Nanjing, which will play an important role in our global delivery model," Raju told the media during the centre's opening ceremony.

Not all UK businesses are turning their noses up at what offshoring has to offer. Earlier this week credit card provider Barclaycard announced that it plans to close its Manchester-based call centre from October and re-direct the work elsewhere, either to Dehli, Mumbai or Teesside.

Email to a friend

Print this page