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Sunday, August 29, 2004

India shall lose 45% of outsourcing market via Inquirer

Indian outsourcing pie being eaten.The Indian outsourcing giants are being shafted by operators in Eastern and Central Europe and the Far East.According to a Gartner report, Indian outsourcers are set to lose more than 45 per cent of their business because they can’t stay ahead of the competition.The country has more than 80 per cent of the global market and it stands to lose more than 45 per cent of that, claimed Gartner.The problem, according to Gartner,is that the Indian government and the industry had "suffered from the erroneous belief" the sector could match booming growth of its software and other mainstream information technology activities without devising a longterm plan. The US had flocked to India because of its vast educated English-speaking workforce and lower labour costs. But India has failed to realise is that the sort of outsourcing it provides can be done by any graduate without the technical skills needed for information technology and many emerging countries have English-speaking graduates.Unlike other emerging nations such as Thailand, Malaysia, Fiji, Mauritius, the Czech Republic, Bulgaria, Poland, Scotland, Rockall and South Africa, India has failed to draft a long-term plan to train workers for the industry.As a result,India will find these jobs replaced by cheaper workers in the Far East for the more mindless development work and companies in Eastern and Central Europe for the tougher stuff. The signals are clear - the journey ahead shall be really rough for Indian BPO majors.
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